Savings

Why need Savings?
Questions on money appear in our different stages of life.'How much do I need to buy a new computer?' 'Can I afford the fee of studying overseas?' 'Should I take a loan for buying a flat?' 'Will my life be comfortable after retirement?’ Savings can help you reaching the long-term goals and being financially secure when you face unexpected incidents.

How to save money?
First, set up a budget plan to track your expenses, access your financial situation. Stick to it and have a positive cash flow.
1. Set a realistic goal
2. State the money outflow and inflow
3. Control spending
4. Adjust if needed to meet your underlying interests

Where to save the money?
Bank accounts, government bonds and insurance are reliable savings product.

Bank accounts
Saving account can be in Hong Kong Dollar and Foreign Currency; they allow you to access your savings for everyday transactions and withdrawals as well as earning interest income.
Time deposit can also be in Hong Kong Dollar and Foreign Currency, they allow you to deposit your money for a set period of time, but in return, you receive a higher rate of interest over a savings account.
Current Account allows you to write cheques for day to day payments, which gives you higher flexibility in your cash-flow and finances management.

Government bonds
When you buy government bonds, you are lending money to the government, it is generally a reliable low risk savings product and the interest rate is fixed.

Insurance
Insurance, as discussed in the previous entry, can also be a saving product. By buying traditional, money can be accumulated through paying premiums regularly.

Where to place your money is base on your preference of access (ATM? online?), your interest (low or high interest rate?), the service provided (DIY? Customer service?) and penalties that might given. So, be SMART (Specific, Measurable, Attainable, Relevant, Time-bound) on saving money and to your savings!