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Posted by Ivan

Recently, my youngest son was lucky enough to be accepted into the LSE , London to pursue a 3 years degree course. Am I must say that in hindsight, I am thankful that I had unknowingly plan and prepare well to be able to afford the exorbitant cost of sustaining a kid for an overseas course. Some 30 years back, whoever has heard and thought about financial planning and financial freedom.

Back then, I remember that there are only a limited number of higher institutions. But today, there are a long list of so-called universities etc. As a parent, I would say that there are of course a lot more opportunities given that one has the financial resources, for local institutions or twinning programs.

So for young married couples out there with kids that are on their way to higher learnings in many years to come, adequate and sound financial planning is essential. At the fundamental level, there must be initial savings, excess that can be put aside to invest.

I am sure many would say that there is already insufficient to spend, so where to say. My own experiences and my advice to many is that we must start by keeping some savings. And no matter how difficult, one can also try to force himself to say for initial duration. Only when there is such savings, can this amount be applied to investment to grow.

Of late, financial planning has taken on a prominent role in the society, and a good knowledge of the principle behind financial planning is essential for one to making wise decision on such matter. People has been talking about financial freedom and many have offered many steps by steps to achieving financial freedom. Recently, I came upon to read an article that talk about the 5 elements to achieve financial freedom. From it, I can see that the above subject while it applies to all, each has a different perspective dependent on the circumstances one is when and what one wish to achieve out of it. Something that requires a self-reflection of his circumstances, his capability, lifestyle, the economy, his needs and objectives. In it, the expert calls for the application of the following 5 elements to one’s life;

a) Spending - inversely related to our ability to achieve financial freedom
b) Inflation – an important element to determining the purchasing power that one needs to
maintained
c) Return on Investment (ROI) – the lower the ROI required, the easier to achieve the objective
d) Time - it is not just only the amount that one talks about, but the timing of when and how the
funding is required, and last but not least
e) Saving – the more one can save the better and easier to achieve the target objective, a direct
impact to the financial freedom.

So it make sense for one to first reflect on his own circumstances before embarking on the route to achieving his financial freedom.

Find out More >>5 elements to achieve financial freedom” by Yap Ming Hui-NST(5/10/08)

Yours truly,
Ivan

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