Why is financial management a necessary skill for modern people? 💰✨

Today, I’d like to share with you a question that Hong Kong people face every day: Why is financial management so important?
In fact, financial management is not just a patent of the rich, but it is a necessary skill for modern people, just like English and computers. If you don’t know them, you will be several blocks behind others. 📉

1. Modern life is stressful, and without financial management, it’s easy to live paycheck to paycheck.

The cost of living in Hong Kong is incredibly high, with prices rising for everything: housing, transportation, food, entertainment—everything costs money. Many workers, upon receiving their monthly salary, already have their heads hunched over how they'll make it to payday.

• The dilemma of those who live paycheck to paycheck : they have no financial planning, spend their wages as soon as they get them, have no savings, and become scrambled when encountering emergencies.
• Editor's Thoughts : Younger people think, "Just wash it when you have money," since they'll have food next month anyway. But older people know that life won't always be this easy, and not having a backup fund is truly dangerous.

2. Inflation and rising prices 🚀

A bowl of wonton noodles used to cost 20 bucks, but now it can easily go up to 40 bucks. This is inflation.

• Why do we need financial management? If we simply keep our money in the bank, the interest rate will be lower than the inflation rate, which means that the value of the money will gradually depreciate.
• The role of financial management : Through investment and savings plans, you must at least beat inflation to protect your hard-earned money.

3. Financial freedom is the dream of many Hong Kong people🏝️

Financial freedom means that you don’t need to work overtime, and you can support yourself by relying solely on the income brought in by your assets.

• Financial management doesn’t mean getting rich overnight ; it’s about long-term planning and accumulating wealth slowly through savings and investments.
• Editor's perspective : Seeing friends around me working so hard to save ETFs and buy funds, they are not doing so because they want to get rich, but because they hope that one day they can choose what they want to do instead of being forced to work.

4. Respond to emergencies🔔

Epidemics, layoffs, medical expenses, who knows when these will happen?

• No financial planning : When something unexpected happens, you have to borrow money from credit cards or take out personal loans, and the interest rates are shockingly high.
• Have good financial management habits : at least have an emergency fund so that you won’t be financially ruined by one or two setbacks.

5. Managing your finances is about managing your life.

Financial management is not just a numbers game, it is also a lifestyle attitude.

• Know how to plan : Know clearly what you want, such as when to buy a house or when to retire.
• Improve self-confidence : When you know you have money to deal with the future, your psychological pressure will naturally be reduced.
• My experience : I used to find financial management boring, but after I started making a budget, I discovered that I can actually control my life, rather than having life control me.

6. Conclusion 🌟

Financial management is an essential skill for modern people because:

1. Help you escape the fate of moonlighting
2. Resist inflation and preserve asset value
3. Laying the foundation for financial freedom
4. Deal with emergencies and reduce risks
5. Help you take control of your life

My final words: **Financial management doesn’t have to wait until you have money to start, but because you want to have money, you have to start first. **💪

Do you want me to write a follow-up article on “The 10 Most Common Financial Mistakes Made by Hong Kong People” ?