Determining the Target and Purpose of Saving

DDHK.ORG - Migrant worker friends come from Indonesia ke Hong Kong to work and make money for the family and for certain purposes. Let's try to explore how we manage our finances wisely, so that we can achieve our goals and achieve our desires in the future.

There are several facts about migrant workers in Hong Kong. That is:

1. As much as 1 in 2 migrant workers owes money to pay recruitment fees.
2. Only 6-7 percent of migrant workers return home with sufficient money.
3. Only 18 percent of migrant workers have bank accounts.
4. As many as 83 percent of migrant workers are in debt.

Of course, friends who come to Hong Kong have plans, targets, and dreams to achieve. Generally, states "want to change fate". It's just that the stated goals are very general, not specific. As a result, friends are not clear where they are going.

Even though they come to Hong Kong as a domestic worker, Hong Kong should only be a stepping stone, that one day they will return to Indonesia.

There are several aspects of money management that must be fulfilled. Namely:

1. Discipline to save and control the spending of money. Regardless of the amount of a person's salary or income, if he is not disciplined in saving and cannot control his expenses, the amount of money received will not be able to achieve the goals he wants to achieve.
2. It takes cooperation with the family in managing money. Mostly, migrant workers who work and then send money to Indonesia without any agreement or cooperation with the family, be it parents, spouse, or children.
3. How do we invest the money we have collected to develop the value of our savings. This is because if the money is only saved and not invested, the money will decline in value.
4. Need to know the right and dare to speak. For example, if the employer does not provide the right to a salary according to the amount that should be paid each month.
5. Dare to prepare to return to Indonesia. Supposedly, when friends depart from Indonesia, they already have goals, financial targets, and already have a plan where the money they earn will be invested. So, someday ready to return to Indonesia.

It should also be known the basics of financial management which include:

1. Determine the goals to be achieved. Must have clear goals, why go to work to Hong Kong.
2. Planning for financial management. We have a formula: Salary - Savings = Expenses. Usually, people have the formula: Salary - Expenses = Time to save. This is what makes many people feel that their salary money is never enough to save. In fact, the salary in Hong Kong is quite large. The goal must have been formulated so that we know how much money to save each month.
3. Create a budget and record expenses.

Friends must know, what is the purpose of going to Hong Kong. Among the examples:

1. Want to avoid borrowing money continuously.
2. Want to worry less about money every day.
3. Want to travel, at least once a year.
4. Want to have your own house.
5. Want to get out of debt.
6. Want to be able to pay for children's education.
7. Want to stop arguing with your partner about money.
8. Want to have enough pension money when you are old.
9. Want to buy a motorbike or a car.
10. Want to earn income or business after returning home.
11. Want to help family or parents.
12. want to be able to buy equipment, such as computers, smart phones, or home appliances.
13. Want to stop buying things all the time.

SMART, how to set financial goals

1. Specific (specific). Goals must be clear and specific. For example, "I want to send my children to college."
2. Measurable. It is known, how much tuition fees must be prepared.
3. Achievable (achievable). These goals can be achieved within a certain time.
4. Realistic (makes sense).
5. Time (target achievement). The timing must be clear, when we will achieve these goals.

Examples of practical calculations for saving purposes

1. Emergency fund, HK $ 6,000 in 2 years (for that, must save HK $ 250 per month). why do we need it? These are the funds we need from time to time. Most of the time, friends don't have an emergency fund, so if something unexpected happens, you will be in debt.
2. Venture capital, HK $ 19,200 in 2 years (for that, must save HK $ 800 per month).
3. Children's education, HK $ 12,000 in 2 years (for that, must save HK $ 500 per month)

In total, there is a total of HK $ 1,550 in savings in a month to achieve these 3 goals. Within 2 years, the amount to be collected will be HK $ 37,200. With a salary of HK $ 4,630 a month, we only need to save HK $ 1,550, we can spend our salary of HK $ 3,080 every month, to be sent to Indonesia and for the necessities of living in Hong Kong.

How do we each month divide the HK $ 3,080 for various purposes? How do we sort out our needs and wants? Join the talk show series Wise Managing Finances next Saturday, March 20, 2021!

...

By Medya Putri, Trainer and Financial Consultant of Enrich, presented at the talkshow online series "Wisely Financial Management", Saturday, March 13, 2021.

>>> Follow the online talkshow series entitled "Wise Managing Finances" with other themes, every Saturday night, 20, 27 March, and 3 April 2021, LIVE on Facebook page Dompet Dhuafa Hong Kong. [DDHK News]