Time to train more and upgrade your skill

trainingWith the stock market turmoil kick up by a poorer China economy result, local headhunter expected hiring freeze in 2016. I am not actually not shocked at the news, which you can get more detail from http://www.straitstimes.com/business/economy/headhunters-expect-hiring-freeze-next-year

Given a forward thinking to the situation ahead, it is only wise for us to pick up or to upgrade our skill and get trained. And i managed to catch up and conduct a much privilege interview with a niche course provider, Desmond Chua, that combined both training and consultation together. And here is the interview extract.

 

Fredrick : As usual, always been looking forward to chat with you, and so much we can learn from you. So what have you been up recently?

Desmond Chua : Hello Fredrick, I am very well and thank you for inviting me to be your guest for this interview. For the last few months, I am designing several workshops for the public program. The first one is about managing career challenges which would likely takes place in mid October this year. The one that is Live now is the “Keep Calm and Carry On Selling” program.

 

Fredrick : Wow, now you are into conducting of course! I guess your student will benefit a lot from it! Do shares with us on your course detail.

Desmond Chua: Well, I spent more than 20 years of my life in the corporate, having the opportunity to serve both local SMEs and regional posting overseas. And one thing that strikes me is many are unhappy at their work. This unhappiness can be due to the remuneration, the job responsibilities (some want less and others want more), work/life balance (bosses are giving laptops and mobile phones to staff) and many more reasons.

Since many of us spent a large part of our lives at work, surely it must make sense that we are doing what we love at work. On the contrary, many are not and that bothers me to dig deeper and find ways to resolve it.

Dream Jobs come true is not another career talk but one that can truly transform a person destiny if he puts in the required effort during the workshop. There will be many activities that we will be introducing to the participants, an atmosphere of fun-filled learning and interaction for all.

For registration, please contact Safra Jurong at 6686 4333 or email jrclub@safra.sg (Safra will be updating this program on their website, please check back soon)

 

Fredrick : What makes your course different from others in the market?

Desmond :  That is a great question! There is no lack of training out there and every trainer has its own strength and areas of expertise. I have been coaching clients  for the last 5 years in their relationship problems – from being singles, divorce cases to single parents and often career challenges is a big part of it. For example, guys who are single tend to think woman need man with financial stability and would not commit to a relationship till he thinks his career is “stable” (which can take tens of years for some). Then, there are couples who struggled financially because one of the partner is retrenched or in the midst of switching job or unemployed.

I had also been on both sides of the table, being an interviewee looking for jobs and interviewing candidates as well. When I was in sales, I spent a lot of time going for networking events and would seize opportunity to talk to headhunters, direct employers and those who are looking for jobs. This knowledge has served me well in the course of communicating with my clients.

At Eimi Group, we work with trainers/consultants who are passionate about impacting lives, they are lifelong learners and exudes traits of responsibility, positive attitude and humility. The bible has a saying ; ”Do to others whatever you would like them to do to you” Matthew 7:12.

Because of our collective experience, we design workshops with the needs of our participants in mind and we keep a close tab on the current economy, industry changes and trends.

Also, we believe everyone has a different learning style, some pick up oncepts fast  from hearing the speaker while others may reach their own “AHA” moments through participating in games-based activities. And that is important to us, because we want our participants to be happy, to learn something and apply when they go back to the office and not get hyped up and back to normal after the course. That defeats the purpose and go against our mission.

 

Fredrick : Thank Desmond on sharing so much with us and all the best to your course!

Desmond Chua : Thank you and God bless you and family!

 

Impact of IT Era to each of us.

Growth of IT may have bring about great convenient and improve quality of Lives, but is it so all the time?

Growth of IT may have bring great convenient and improve quality of Lives, but is it so all the time?

Rise of IT Era and the impact that it bring

As an Engineer myself, with 10+ years of experience in Information Technology, i always believed in using IT as enabler for Company, Enterprise to increase their effectiveness toward better profit. Over the years, Technology advances by leap and bound! One good example will be replacement of NTUC Cashier Counter with Self Checkout machine.  I was shocked that IT as enabler have evolved to this stage where they replacing cashier working in the NTUC.

And this article “Wealth without workers, workers without wealth” (the extract of article is as following) caught my attention, which clearly highlighted the impact that each of us may face as an employee . We may be replaced as a result of improvement brought by IT System! So are you prepared for the day when an machine or IT software replaced your job? It will in your interest to secure your second income!

 

Article “Wealth without workers, workers without wealth”

TECHNOLOGICAL revolutions are best appreciated from a distance. The great inventions of the 19th century, from electric power to the internal-combustion engine, transformed the human condition. Yet for workers who lived through the upheaval, the experience of industrialisation was harsh: full of hard toil in crowded, disease-ridden cities.

The modern digital revolution—with its hallmarks of computer power, connectivity and data ubiquity—has brought iPhones and the internet, not crowded tenements and cholera. But, as our special report explains, it is disrupting and dividing the world of work on a scale not seen for more than a century. Vast wealth is being created without many workers; and for all but an elite few, work no longer guarantees a rising income.

Computers that can do your job and eat your lunch

So far, the upheaval has been felt most by low- and mid-skilled workers in rich countries. The incomes of the highly educated—those with the skills to complement computers—have soared, while pay for others lower down the skill ladder has been squeezed. In half of all OECD countries real median wages have stagnated since 2000. Countries where employment is growing at a decent clip, such as Germany or Britain, are among those where wages have been squeezed most.

In the coming years the disruption will be felt by more people in more places, for three reasons. First, the rise of machine intelligence means more workers will see their jobs threatened. The effects will be felt further up the skill ladder, as auditors, radiologists and researchers of all sorts begin competing with machines. Technology will enable some doctors or professors to be much more productive, leaving others redundant.

Second, wealth creation in the digital era has so far generated little employment. Entrepreneurs can turn their ideas into firms with huge valuations and hardly any staff. Oculus VR, a maker of virtual-reality headsets with 75 employees, was bought by Facebook earlier this year for $2 billion. With fewer than 50,000 workers each, the giants of the modern tech economy such as Google and Facebook are a small fraction of the size of the 20th century’s industrial behemoths.

Third, these shifts are now evident in emerging economies. Foxconn, long the symbol of China’s manufacturing economy, at one point employed 1.5m workers to assemble electronics for Western markets. Now, as the costs of labour rise and those of automated manufacturing fall, Foxconn is swapping workers for robots. China’s future is more Alibaba than assembly line: the e-commerce company that recently made a spectacular debut on the New York Stock Exchange employs only 20,000 people.

The digital transformation seems to be undermining poor countries’ traditional route to catch-up growth. Moving the barely literate masses from fields to factories has become harder. If India, for instance, were to follow China’s development path, it would need skilled engineers and managers to build factories to employ millions of manufacturing workers. But, thanks to technological change, its educated elite is now earning high salaries selling IT services to foreigners. The digital revolution has made an industrial one uneconomic.

Bridging the gap

None of this means that the digital revolution is bad for humanity. Far from it. This newspaper believes firmly that technology is, by and large, an engine of progress. IT has transformed the lives of billions for the better, often in ways that standard income measures do not capture. Communication, knowledge and entertainment have become all but free. Few workers would want to go back to a world without the internet, the smartphone or Facebook, even for a pay increase. Technology also offers new ways to earn a living. Etsy, an online marketplace for arts and crafts, enables hobbyists to sell their wares around the world. Uber, the company that is disrupting the taxi business, allows tens of thousands of drivers to work as and when they want.

Nonetheless, the growing wedge between a skilled elite and ordinary workers is worrying. Angry voters whose wages are stagnant will seek scapegoats: witness the rise of xenophobia and protectionism in the rich world. In poor countries dashed expectations and armies of underemployed people are a recipe for extremism and unrest. Governments across the globe therefore have a huge interest in helping remove the obstacles that keep workers from wealth.

The answer is not regulation or a larger state. High minimum wages will simply accelerate the replacement of workers by machines. Punitive tax rates will deter entrepreneurship and scare off the skilled on whom prosperity in the digital era depends. The best thing governments can do is to raise the productivity and employability of less-skilled workers. That means getting rid of daft rules that discourage hiring, like protections which make it difficult to sack poor performers. It means better housing policy and more investment in transport, to help people work in productive cities such as London and Mumbai. It means revamping education. Not every worker can or should complete an advanced degree, but too many people in poor countries still cannot read and too many in rich ones fail to complete secondary school. In future, education should not be just for the young: adults will need lifetime learning if they are to keep up with technological change.

Yet although governments can mitigate the problem, they cannot solve it. As technology progresses and disrupts more jobs, more workers will be employable only at lower wages. The modest earnings of the generation that technology leaves behind will need to be topped up with tax credits or wage subsidies. That need not mean imposing higher tax rates on the affluent, but it does mean closing the loopholes and cutting the giveaways from which they benefit.

In the 19th century, it took the best part of 100 years for governments to make the investment in education that enabled workers to benefit from the industrial revolution. The digital revolution demands a similarly bold, but swifter, response.

 

Develop Your Fundamental Trading Skill

Introduction

Google around for Trading Methods, and you can easily ton and ton of various methods. Among these, there are 4 timeless approaches to analysis of the market, namely

  • Elliott Wave Theory,
  • Gann’s Swing Trading,
  • Shabacker’s Chart Pattern and
  • Wyckoff Trading Methods

Each methods has their own pro and con, but if you will to ask me which methods i prefer or i train in? I’m will say I’m all in for Wyckoff. Most of my trading skill are based on his teaching and it is serving me good especially for my Index Trading.

Richard Demille Wyckoff, a stock market authority, founder and onetime editor of the Magazine of Wall Street, and editor of Stock Market Technique

Richard Demille Wyckoff, a stock market authority, founder and onetime editor of the Magazine of Wall Street, and editor of Stock Market Technique

 

 

 

 

 

Let us read on for more of his trading ideas! An extract of a great article from http://stockcharts.com/school/doku.php?id=chart_school:market_analysis:wyckoff_market_analy. Just remember that it is what you do to educate yourself during your free time to improve your current financial state. So let get start to develop your Trading Skill!

 

Wyckoff Market Analysis

Richard D. Wyckoff, a perpetual stock market student, was a great trader and a pioneer of technical analysis. Based on his theories, studies and real life experiences, Wyckoff developed a trading methodology that has stood the test of time. Wyckoff started with a broad market assessment and then drilled down to find stocks with the most profit potential. This article, the first of two, details Wyckoff’s approach to broad market analysis. It is important to understand the broad market trend and the position within this trend before selecting individual stocks. The second article shows how Wyckoff selected stocks to buy and sell. This second article will be posted by the end of February 2012.

About

Richard Wyckoff began his Wall Street career in 1888 as a runner scurrying back and forth between firms with documents. As with Jesse Livermore in the bucket shops, Wyckoff learned to trade by watching the action first hand. His first trade occurred in 1897 when he bought one share of St. Louis & San Francisco common stock. After successfully trading his own account several years, he opened a brokerage house and started publishing research in 1909. The Magazine of Wall Street was one of the first, and most successful, newsletters of the time. As an active trader and analyst in the early 1900s, his career coincided with other Wall Street greats including Jesse Livermore, Charles Dow and JP Morgan. May have called this the “golden age of technical analysis”. As his stature grew, Wyckoff published two books on his methodology: Studies in Tape Reading (1910) and How I Trade and Invest in Stocks and Bonds (1924). In 1931, Wyckoff published a correspondence course detailing the methodology he developed over his illustrious career.

Wyckoff

Two Rules

Wyckoff focused exclusively on price action. Earnings and other fundamental information were simply too esoteric and imprecise to be used effectively. Moreover, this information was usually already factored into the price by the time it became available to the average speculator. Before looking at the details, there are two rules to keep in mind. These rules come directly from the book, Charting the Stock Market: The Wyckoff Method, by Jack K. Hutson, David H. Weiss and Craig F. Schroeder.

Rule One: Don’t expect the market to behave exactly the same way twice. The market is an artist, not a computer. It has a repertoire of basic behavior patterns that it subtly modifies, combines and springs unexpectedly on its audience. A trading market is an entity with a mind of its own.

Rule Two: Today’s market behavior is significant only when it’s compared to what the market did yesterday, last week, last month, even last year. There are no predetermined, never-fail levels where the market always changes. Everything the market does today must be compared to what it did before.

Instead of steadfast rules, Wyckoff advocated broad guidelines when analyzing the stock market. Nothing in the stock market is definitive. After all, stock prices are driven by human emotions. We cannot expect the exact same patterns to repeat over time. There will, however, be similar patterns or behaviors that astute chartists can profit from. Chartists should keep the following guidelines in mind and then apply their own judgments to develop a trading strategy.

Broad Market Trend

By definition, vast majority of stocks move in harmony with the broader market. Chartists, therefore, should first understand the direction and position of the broad market trend. With this in mind, Wyckoff developed a “wave chart”, which was simply a composite average of five or more stocks. Note that Charles Dow developed the Dow Jones Industrial Average and Dow Jones Transportation Average around the same time. While the Dow Industrials is perhaps the most famous “wave chart”, chartists today can choose among several indices to analyze the broad market. These include the S&P 500, the S&P 100, the Nasdaq, the NY Composite and the Russell 2000.

Wyckoff used the daily high, low and close to create a series of price bars and construct a classic bar chart. The objective was to determine the underlying trend for the broader market and identify the position within this trend. Trend is important because it tells us the path of least resistance for the majority of stocks. Position is important because it tells us the current location within this trend. For example, trend position helps chartists determine if the market is overbought or oversold to time buy and sell decisions.

There are three possible trends in action: up, down or flat. There are also three different timeframes: short-term, medium-term and long-term. For the purposes of this article, daily charts are used for the medium-term trend. An uptrend is present when the composite index forms a series of rising peaks and rising troughs. Conversely, a downtrend is present when the index forms a series of falling peaks and troughs. A series of equal troughs and equal peaks forms a trading range. Chartists must then wait for a break from this range to determine trend direction.

Wyckoff

Wyckoff

The charts above show examples of an uptrend and downtrend. Within the trend, prices can be positioned at oversold levels, overbought levels or somewhere in the middle of the trend. Trend position is important to determine the risk-reward ratio of a new position. Ideally, chartists should look for long positions when the trend is up and the index is oversold. This means a pullback or correction has occurred. The risk-reward ratio is less attractive if buying in an uptrend when prices are overbought. Similarly, the risk-reward ratio is less attractive if selling in a downtrend when an index is in an oversold position. It is best to establish a new short position when the index is either overbought within a downtrend or in the middle of this downtrend.

Major Tops and Bottoms

In between trending periods, the broad market indices form major tops and bottoms that reverse existing trends. Wyckoff noted that tops and bottoms were different. Market tops were often long draw out affairs, while market bottoms were relatively short violent beasts. Wyckoff identified specific characteristics some 100 years ago and these characteristics can still be seen in today’s markets.

Bear markets often end with a selling climax or spring, which is a failed support break. First, the major stock index is in a downtrend because it has been moving lower for an extended period. Sentiment is quite negative and many investors are thoroughly discouraged with their mounting losses. At some point, discouraged investors finally throw in the towel and unload their stocks. Prices fall sharply and often break a key support level. Prices appear to be in a free fall at this stage, but the “smart” money is waiting in the wings. Smart money buying pressure suddenly reverses the free fall and prices surge to close well above their lows.

Wyckoff  -  Chart 1

Wyckoff used volume to confirm the validity of a reversal, breakout or trend. A selling climax or spring should be accompanied by an increase in volume to show expanding participation. It is important that big money (i.e. institutions) support a market move for it to have staying power. Low volume suggests limited participation and increases the chances of failure.

The example above shows a high volume selling climax and spring in early October 2011. Notice how the S&P 500 broke support as selling pressure pushed prices below 1100. Prices dipped below 1080 intraday, but buyers stepped in and pushed the index back above 1120 by the close. The support break did not hold and the selling climax occurred on high volume. This bullish signal was enough to carry the S&P 500 above its late August high by the end of October.

As noted above, market tops are different than market bottoms. Tops often form with an extended period of sideways price movement, which is a consolidation. This is known as a distribution period where the smart money (institutions) distributes shares to the dumb money (public). In other words, the smart money sells their shares to the dumb money just before the market breaks down.

On the price chart, the market top is often not clear until the second half of the pattern unfolds. This often involves a failed breakout or a failure at resistance. This is not so negative at the time, but prices then return all the way to support. Such a sharp decline reflects a marked increase in selling pressure. There is then some sort of bounce off support that forms a lower peak, which shows diminished buying pressure. At this point, the charts shows an increase in selling pressure on the support test and a decrease in buying pressure on the subsequent bounce. The reversal is completed with a final support break on increasing volume.

Wyckoff  -  Chart 2

The example above shows the Dow Industrials with a peak in 2007. Notice how prices moved sideways for around seven months. There are five points on this chart to define the topping process. The first point, which occurred in the second half of the pattern, shows the Dow failing to hold above its prior peak. There is nothing bearish about this failed breakout until prices decline all the way back to the August trough. This is the first sign that selling pressure (supply) is increasing. Prices bounce off support, but a lower peak forms in early December. This is the first signal that buying pressure (demand) is diminishing. An increase in selling pressure and decrease in buying pressure combine to mark an important top that is confirmed when prices break support with a sharp decline in January 2008. Wyckoff used volume to confirm price movements. Notice how volume on down days exceeded volume on up days in October and November as prices declined to support. This showed an increase in selling pressure that validated the support break.

Price Projections

Once a market top and bottom or bottom took shape, Wyckoff turned to figure charts to calculate price projections. Figure charts later evolved into Point & Figure charts. In general, Wyckoff based his price projections on the width of the pattern. The wider the pattern, the higher the ultimate price projection. In other words, a long base extending over ten P&F columns would project a relatively high target upon a breakout. Conversely, a narrow base covering just six columns would project a relatively low target. It is important to make sure the base is big enough and the breakout robust enough to assure a high enough price target. The converse is true for market tops. An extended top covering over ten P&F columns would project a much deeper decline than a narrow top extending less than ten columns.

Wyckoff

Wyckoff based his projections on the width of the entire topping pattern. As with most technical analysis, the width of the pattern can be subjective. Wyckoff like to look for the row with the most filled boxes and count the entire width of this row, including the empty boxes. Chartists can employ this method or simply measure the entire width from start to finish. First, start by finding the key support break. Once the support break is found, extend a support line across the chart. Chartists can then identify the column leading into the pattern (start) and the column leading out (end). These two define the entire pattern. The example above shows the S&P 500 top in 2007 with the column count extending from November 2007 (red B) to January 2008 (red 1). Note that February starts with the red 2 and O-Column breaks support before this red 2 is printed. This is a long and extended top covering 34 columns. At 10 points per box on a 3-box reversal, the estimated decline is around 1020 points (34 x 3 x 10 = 1050). This amount is subtracted from the pattern peak for a downside target in the 520 area (1570 – 1020 = 550). The ultimate low in the S&P 500 was around 666 in March 2009.

Wyckoff

The second chart shows the S&P 500 bottom in 2009 with two bottoming patterns. Notice that there are two breakouts: one in May (red 5) and another in July (red 7). Both patterns share the same low point (670). Based on the resistance break, the smaller pattern extends 20 columns, which is from the entry column to the exit column. Based on 10 points per box and a 3-box reversal setting, the projected advance would be 600 points (20 x 10 x 3 = 600) and the target would be around 1270 (670 + 600 = 1270). The second pattern is much bigger and extends some 42 columns for a projected advance of 1260 points (42 x 3 x 10). This targets a move to around 1930, which would be one heck of a bull market.

Even though Wyckoff used horizontal counts to make projections, he also cautioned against taking these projections too seriously. As noted above, nothing is definitive when it comes to the stock market and technical analysis. Chartists are given broad guidelines and must make their own judgments as price action unfolds. Some counts fall short of their targets, while some counts exceed their targets. You can read more on traditional P&F counting techniques in our ChartSchool.

Position in Trend

Before making a trading or investment decision, chartists need to know where the market is within its trend. Overbought markets are at risk of a pullback and positions taken with overbought conditions risks a significant drawdown. Similarly, the chances of a bounce are high when the market is oversold, even if the bigger trend is down. Selling short when market conditions are oversold can also result in a significant drawdown and adversely affect the risk-reward ratio.

Wyckoff notes that an uptrend starts with an accumulation phase and then enters a markup phase as prices move steadily higher. There are five possible buy points during the entire uptrend. First, aggressive players can buy on the spring or selling climax. This area offers the highest reward potential, but the risk of failure is above average because the downtrend has not yet reversed. The second buy point comes with the breakout above resistance, provided it is confirmed by expanding volume. Chartists missing the breakout buy point are sometimes given a second chance with a throwback to broken resistance, which turns into support.

Wyckoff

Once the markup stage is fully under way, chartists must then rely on corrections, which can form as consolidations or pullbacks. Wyckoff referred to a flat consolidation within an uptrend as a re-accumulation phase. A break above consolidation resistance signals a continuation of the markup phase. In contrast to a consolidation, a pullback is a corrective decline that retraces a portion of the prior move. Chartists should look for support levels using trend lines, prior resistance breaks or prior consolidations. Alternatively, Wyckoff also looked for support or reversal signs when the correction retraced 50% of the last up leg.

A downtrend starts with a distribution phase and then enters a markdown phase as prices move steadily lower. Note that Wyckoff did not shy away from shorting the market. He looked for opportunities to make money on the way up and on the way down. As with the accumulation and markup phase, there are five potential selling points during this extended downtrend. First, a lower peak within a distribution pattern offers a chance to short the market before the actual support break and trend change. Such aggressive tactics offer the highest reward potential, but also risk failure because the downtrend has not officially started. The breakdown point is the second level to short the market, provided the support break is validated with expanding volume. After a breakdown and oversold conditions, there is sometimes a throwback to broken support, which turns into resistance. This offers players a second chance to partake in the support break.

Wyckoff

Once the markdown phase begins in earnest, chartist should wait for flat consolidations or oversold bounces. Wyckoff referred to flat consolidations as re-distribution periods. A break below consolidation support signals a continuation of the markdown phase. In contrast to a consolidation, an oversold bounce is a corrective advance that retraces a portion of the prior decline. Chartists can look for resistance areas using trend lines, prior support levels or prior consolidations. Wyckoff also looked for resistance or reversal signs when the correction retraced 50% of the last down leg.

Conclusions

There are four key areas of the Wyckoff market method: trend identification, reversal patterns, price projections and trend position. Getting the trend correct is half the battle because the majority of stocks move in conjunction with the broad market trend. This trend continues until a major top or bottom pattern forms. Aggressive players can act before these reversal patterns are complete, but the existing trend does not officially reverse until price breaks a key support or resistance level on good volume. Once a top or bottom is complete, chartists can use a horizontal count method on P&F charts to project the length of the ensuing advance or decline. A trend is considered mature and ripe for a reversal once prices reach these target areas. Provided the trend has further room to run, chartists can then determine the position of prices within this trend to insure a healthy risk-reward ratio when taking positions. Chartists should avoid new long positions when the market is overbought and avoid new short positions when the market is oversold. As noted at the beginning, these are broad guidelines for interpreting market movements. The final judgment call is up to you.

 

And for those whom prefer picture with sound, do play on the following video.

 

Financial Knowledge of Our Youth

SINGAPORE – Youth in Singapore are overwhelmingly pessimistic about their financial situation and readiness, a new NTUC Income survey has found.

Eight out of 10 are not confident about their current financial situation, while nine out of 10 feel they are not financially ready for the future, according to the survey.

More than 1,000 final-year polytechnic students, university undergraduates and young workers between the ages of 18 and 29 were polled in the survey, which was conducted by Nielsen.

The poll found that young people have some financial literacy skills, but they need guidance to understand proper financial planning better.

Eight out of 10 believe that they need at least three months of their income for emergencies, which is a sizeable gap from the 10 months that financial planners recommend.

Mr Marcus Chew, vice-president for strategic marketing at NTUC Income, said the survey aims to identify the gaps in financial planning knowledge among youth in Singapore.

“We would like to get them thinking about financial planning early and to help them understand that the decisions they make today will have an impact on their financial well being later in life.”

NTUC Income has also launched a campaign for youths, to create awareness of their financial needs.

The campaign, called Future Made Different, includes a Future Starter venture fund that will grant $100,000 cash to one person or team, for their future business dream.

– See more at: http://www.straitstimes.com/news/business/more-business-stories/story/singapore-youths-not-confident-about-financial-future-surv#sthash.f1QtimdZ.dpuf

SINGAPORE – Youth in Singapore are overwhelmingly pessimistic about their financial situation and readiness, a new NTUC Income survey has found.

Eight out of 10 are not confident about their current financial situation, while nine out of 10 feel they are not financially ready for the future, according to the survey.

More than 1,000 final-year polytechnic students, university undergraduates and young workers between the ages of 18 and 29 were polled in the survey, which was conducted by Nielsen.

The poll found that young people have some financial literacy skills, but they need guidance to understand proper financial planning better.

Eight out of 10 believe that they need at least three months of their income for emergencies, which is a sizeable gap from the 10 months that financial planners recommend.

Mr Marcus Chew, vice-president for strategic marketing at NTUC Income, said the survey aims to identify the gaps in financial planning knowledge among youth in Singapore.

“We would like to get them thinking about financial planning early and to help them understand that the decisions they make today will have an impact on their financial well being later in life.”

NTUC Income has also launched a campaign for youths, to create awareness of their financial needs.

The campaign, called Future Made Different, includes a Future Starter venture fund that will grant $100,000 cash to one person or team, for their future business dream.

– See more at: http://www.straitstimes.com/news/business/more-business-stories/story/singapore-youths-not-confident-about-financial-future-surv#sthash.f1QtimdZ.dpuf

Singapore youth not confident about financial future: Survey – See more at: http://www.straitstimes.com/news/business/more-business-stories/story/singapore-youths-not-confident-about-financial-future-surv#sthash.f1QtimdZ.dpuf

SINGAPORE – Youth in Singapore are overwhelmingly pessimistic about their financial situation and readiness, a new NTUC Income survey has found.

gradutaenusd0209e

Eight out of 10 are not confident about their current financial situation, while nine out of 10 feel they are not financially ready for the future, according to the survey.

More than 1,000 final-year polytechnic students, university undergraduates and young workers between the ages of 18 and 29 were polled in the survey, which was conducted by Nielsen.

The poll found that young people have some financial literacy skills, but they need guidance to understand proper financial planning better.

Eight out of 10 believe that they need at least three months of their income for emergencies, which is a sizeable gap from the 10 months that financial planners recommend.

Mr Marcus Chew, vice-president for strategic marketing at NTUC Income, said the survey aims to identify the gaps in financial planning knowledge among youth in Singapore.

“We would like to get them thinking about financial planning early and to help them understand that the decisions they make today will have an impact on their financial well being later in life.”

NTUC Income has also launched a campaign for youths, to create awareness of their financial needs.

The campaign, called Future Made Different, includes a Future Starter venture fund that will grant $100,000 cash to one person or team, for their future business dream.

Note : The above article was extracted from http://www.straitstimes.com/news/business/more-business-stories/story/singapore-youths-not-confident-about-financial-future-surv

 

Shocked as I am

After reading this article, it do make me ponder for a whiles and think in the shoes of both their generation and my generation (I born in 1970+). And it alarming for me to know that in their financial knowledge vocabulary, they believed just 3 months of emergency fund will be sufficient, instead of 6-12 months! I believe such survey only reveal the tip of the iceberg and, what worry me the most is that, most of our youths are pessimistic.

In their next decade of years to come, housing will be their biggest ticket item that they ever have to pay up, as compare with the rest of the expenses like transport, meal and others. Due to limited land in Singapore, increased influx of external work forces and plus the nature of our Fiat Money, it don’t take a genius to predict the higher Housing price to come.

During our parent generation (those born in 1940-50s), it is common to just have our dad being the breadwinner, and our mum to take care of the household full time. They still can survived in that mode. Come to our generation, both husband and wife need to work just to make both end meet.

Given this trend, can we derived that we need to work along with our kids when it is their turn to own their house and support out with their housing loan? That will not be a pleasant way to enjoy my retirement with my wife.

To help them to cope with this oncoming issue that we can easily predicated and to help ourselves with a smooth retirement, it is crucial for us to install sufficient financial knowledge in our kids. And as parent, we must not rob their innocent off, whiles forcing down their throat with all these “adulty” financial knowledge.

bigfatpillar.com contain articles which help on with the Financial Education for the Adults, but for child, let’s read on on some of following advises extracted from http://www.moneysense.gov.sg/financial-planning/guides-and-articles/getting-your-kids-started-on-money-management.aspx

 

Getting Your Kids Started On Money Management

An article in the newspapers generated much surprise recently when it reported that some parents continued to pay the mobile phone bills, shopping sprees and car loans of their children, who were all working adults.

Although a temptation to indulge one’s offspring is natural in every parent, children who grow up without learning the value of money and the consequences of extravagance may be heading for disaster if their bad money management leads them down the slippery slope of financial bankruptcy and debt problems.

It is important to start inculcating sensible money management habits in children. This can help prevent them from developing extravagant spending habits or falling into the trap of living beyond their means through credit cards.

Building a Foundation for Dollars and Sense

Children as young as three can start to learn the basic elements of money and finance. Communication is the key to igniting their interest in money matters.

If you ask preschoolers where money comes from, many may say “ATMs, where else?” This is not a surprising fact as they have often seen their parents “magically” drawing money from the “money machine”.

One possible way to spark your child’s interest to learn about money matters and correct this misperception is to explain to your child that “money does not grow on trees” and that the ATM does not magically disburse money. Make the connection that the money in the ATM that you are withdrawing is your own and you are simply taking out the money that you have put in. Children need to learn that one needs to work in order to earn money. It is also important to inculcate the discipline of savings and thrift from a tender age.

The bottom line in educating the children is to lay a foundation for good saving habits and to allow them to
understand how to make sound money choices with the allowances and monetary gifts they receive at Chinese New Year, birthdays etc. Do find ways to consciously exploit everyday opportunities like ATM withdrawals or grocery shopping to explain the principles of wise money management or the concepts behind monetary transactions to your children.

Saving Early

Fostering the saving habit early in childhood is necessary to start your child’s journey in financial education. Even 2- year olds can be taught how to put money into a money box (e.g. a piggy bank or any container for saving money). Although they may not grasp the concept of savings, the introduction of coins and notes and putting them into a money box teaches them basics about money identification and differences between the different denominations.

The savings pattern and the time period allocated for a savings goal should be tailored to the age and maturity of the child. The younger the child is, the shorter his or her attention span will be. Therefore, if the child was intending to save enough money to purchase a certain item, the item should be attainable within a short period of time in order to prevent the child from feeling that saving is a hopeless, endless endeavor.

On the other hand, if the child were older, the saving pattern could be extended by turning the saving goal into something unattainable within a short period of time. Encouraging children to save for a few months before they can purchase a favourite toy can teach them the virtues of patience and deferred gratification.

Saving habits can be inculcated more effectively if children can witness and observe the actual accumulation of their savings efforts. Some parents use a clear jar rather than a money box as a young child may feel that the money is “gone” if they cannot see it. Visual representations are important for children and putting a picture of the item they are saving for in their “bank” reinforces their motivation to save. Tracking your children’s progress through a chart also motivates them to save because the chart serves a reminder of their discipline and achievements.

Another method of encouraging your child includes matching his or her savings amounts. So if your child saves 50 cents a day, you can encourage him or her by also contributing 50 cents to his or savings. Besides serving as a reward for the child’s efforts, it can also help reinforce the saving habit and spur him or her on to save for future financial goals.

As the child becomes more proficient in saving in one jar or money box, parents may introduce more sophisticated concepts through other ways of saving. For instance, they can introduce four money boxes to convey the importance of saving for different purposes. The child may distribute his savings across four different money boxes. They are namely

(1) a spending bank for money to be used soon,

(2) a saving bank for money to be used later,

(3) an investing bank for money to grow on its own (take the opportunity to open a bank account for your child, update the passbook and teach your child about interest, deposits and loans) and a

(4) bank for donations to help others.

The practice of “save some, invest some, share some and spend some” not only provides children with opportunities to develop good money habits, but also teaches them to look beyond their own needs and care for the less fortunate.

Breaking the Bank

The celebration of saving is the ability to spend. Making children understand that whatever you spend must be supported by what you save is a great way of teaching them how to live within their means. When your children ask for something in the store, explain to them that you will have to pay for it and that it is not free. Suggest that they utilize the savings in their money boxes if they truly want the item. For younger children who may need more visual representations of the concept, you should also allow them to see the money, hold it, pay for the item at the checkout counter, and receive the receipt along with the item.

With older children, the concept of “needs versus wants” should also be introduced in tandem with learning how to spend only what you save.

An easy way to teach this concept is to take your kids out for a trip to the supermarket. When you are in the midst of shopping for the family groceries, show your kids why some purchases are necessary while others are optional. In addition, draw their attention to the prices of items and highlight the existence of discount coupons or weekly sales. By doing this, your children will be taught that in spending, we can save too and this will equate to more money remaining in daddy’s money box.

Even at their favourite restaurant, you can ask your children to compare menu items and prices. Let them exercise their arithmetic skills by asking them to add up the bill. This will make them more conscious of the amount that they are spending and this will encourage them to decipher between what they really want and what they are simply choosing on a mere whim.

Caught and Taught – Wise Money Management

Teaching children about money management habits is not merely telling them what you want them to do. Children learn through experience. Encouraging them to save through their money boxes or allowing them to handle their own money during “field trips” has a more lasting impact. Hence, always seize real-life opportunities to teach your children the benefits of good money management.

Taking the time to teach your children the lessons of good money management will probably be one of the best investments in time you will ever make. These lessons will equip your children with the skills to secure a good financial future for themselves and their families. If letting go of the apron strings is the hardest thing a parent can do, letting go in the knowledge that your child is going to be a financially independent and responsible adult may perhaps lessen the pain a little.

 

The Father of Success – Education

Road sign to  education and futureI was listening to Singapore Prime Minister Lee Hsien Loong Rally Talk on Television last Sunday night, and he focus a lot on Education.  (For more detail for Rally Talk, click here .) And i totally agreed with Prime Minister Lee on the important of Education.

on top of that i will add, if Mother of Success is Failure, then i will place my thumb up and shout out that the Father of Success will be Education!

 

Father of Success – Education

I love the definition given by Wiki ; “Education in its general sense is a form of learning in which the knowledge, skills, and habits of a group of people are transferred from one generation to the next through teaching, training, or research. ” http://en.m.wikipedia.org/wiki/Education

Education is a series of process to keep your mind in tune to improve in various area of your life! It does not just need to be Educational Qualifications!

 

3 Important points of Education (Father of Success – Education)!

life-Life Stability

Education develop our skill sets and capabilities, and it in return, develop our Career or Business or other Wealth Creation tools. With that, it give us the knowledge to purse our career with better interest and build our Financial Stability. But for those illiterate individual, they have less options open and that lead to less resources called money. Less resource lead to less options available and it just get into a endless bad cycle. The only way out is through Education, and that will lead to improvement and Life Stability.

 

Empower-Self Empowerment

Education allow us to obtain the Knowledge of  different aspects of work,  activities or life and that help you to differentiate and help us in our decision making. It give us more options during decision making and hopefully we will make a good decision in the end. Eventually, that empower and make us capable to look after ourelf in any given situation.

 

 

-Personal Growth

In every human, there is this DNA called Improvement, where we being designed to constantly trying to improve either on Hope or Fear. And we make use of Education to set forward for our Personal Growth.

For personal growth to happen, we need to make time for it, and mostly of the time, during our personal time (After work). If you set your personal growth to pick up new skill that is relevant to your career, allocate time for it.

I always believe our bosses will only give you more work to keep us busy, but it is our responsibility to make sure we engaged in meaningful Education in our personal time. What we did during your personal time could possible help us to develop new skill set to make us rich.

So it time to cut out unnecessary TV Drama out of your life and get started with your Education?

 

Lastly :

“Eduction is the most Powerful Weapon which you can can use to change the World.” by Nelson Mandela.

Do you agreed to that the Father of Success – Education?