Category: Overseas Migration

How To Save Money & Become a Millionaire in Hong Kong?

How To Save Money & Become a Millionaire in Hong Kong?

Posted on by Ryan Mow

Putting your money aside in a piggy bank or a bank savings account is a good start on building wealth. There are opportunity costs and inflation that may eat away your savings more than you may realise. For example, in Feb 2023, the inflation rate in UK & US were 10.1% and 6% respectively. This means that, an average savings account was losing 10.1% value of pounds.

This article will share 7 basic principles on how to save money to become a Millionaire:

Principle #1 – Stay Away From Debt

A true story told by Ivanka Trump (eldest daughter of Donald Trump) where she recalled one time when Donald was walking out of his Trump Tower in New York City he pointed at a homeless man sitting outside of the doorstep and said, “that homeless man has $8b more than me…” this story is to illustrate sometimes having too much debt is not a good problem to have, Donald had such extreme debt at that point he feels insecure about his own net worth.

Furthermore, if you are not a risk taker and have very limited knowledge about investment, it is better to stay away from debt.

Photo by Tiziano Brignoli on Unsplash

Principle #2 – Invest Early & Consistently

The earlier you start investing, the more likely you are to become a millionaire. The time value of money is an important concept to learn. Compound interest of money will accumulate your wealth faster than you would imagine. For example, start saving $6,000/month or $72,000/year. By the 9th year, you would have saved a total of $720,000 and using a 9% pa compound interest earning per year. You will be a millionaire:

illustration only

Principle #3 – Make Savings A Priority

Start with baby steps, saving 10% of your monthly income, then slowly build up to saving 20%, 25%, 30% or even 50% of your monthly income. By building this habit and making savings your priority, you will see dramatically the effects on your overall total savings balance.

Why? Because if you want to become a millionaire, how much money you invest is just as important as the actual act of investing. It takes baby steps Millionaires, for example investing 15% of your income toward retirement, about 20 years or less to reach millionaire status from the beginning of your journey!

From study shows, 70% of millionaires saved more than 10% of their income throughout their working years. The good news is, majority of Asians are good savers. In particular Singaporeans and Chinese who has the highest National Savings rate (% of GDP)

Source: World Economic Outlook (2017)

Principle #4 – Increase Your Income To Reach Your Goal Faster

You don’t need a huge salary to become a millionaire, but you increase your income streams. For example, investing in dividend and interest paying vehicles, starting a side business such as teaching, online courses, go back to school or get training to increase your skills and earning potential.

If you want to reach millionaire status a little bit faster, then the best way to do that is to boost your income. The more money you make, the more you can invest!

Based on studies of all millionaires (97%) believe they control their own destiny. This means they don’t just sit around and wait for things to magically change—they go out and do something about it.

Principle #5 – Cut Unnecessary Expenses

Cutting expenses is easier said than done. Most people find it easier to spend than saving the money for themselves, because nowadays it is too convenient and easy to buy things online.

The goal is to live on less than you make and stick to the budgets you create each month. Having a budget on spending is a good way to keep track of all your expenses. There are fixed costs and variable costs that you should illustrate in your budget.

If you would like to start budgeting your expenses, you may start by completing the QUESTIONNAIRE and we can send out an expense excel spreadsheet to you to use for free.

Complete QUESTIONNAIRE NOW

Principle #6 – Keep Your Millionaire Goal Front and Center

Millionaires do not act how others are doing e.g. friends and family going places, doing stuff or buying new things. If you are easily influenced by others on spending money, it will be hard for you to own your own money.

Almost 50% of the millennials are influenced by social media and how they spend their money. This is becoming a big problem, because they are not in control of their own money and getting stuck into this comparison culture.

Principle #7 – Work with Financial Professional

Finally, if you are very ill and need to find a doctor. You don’t just stay at home and hope the sickness will recover on its own. This is same as finding a financial professional who has studied and experience in helping financial sick patients that needs some guidance and medication for them to improve about their future financial situation and achieve a goal.

You can think of a good personal trainer on your side where you are constantly reminded to exercise regularly and correctly so that you are getting closer to your fitness goals (e.g. lose weights or gain muscles or achieve a milestone)

A financial advisor can be your on personal trainer to work along side you to achieve your financial goals such as to become a millionaire !

If you like to learn more, please contact me admin@ryanmow.com or +852 6227 9931

#millionaire #savingshabit #lifegoals #donaldtrump #investment #investing #professionalinvestor #financialplanning

The Intrinsic Value of The Australian Dollar

The Intrinsic Value of The Australian Dollar

Posted on by cheekcheekgi

When it comes to valuing a currency or simply “money”, there are several factors to consider, such as Demand & Supply of a particular currency in the market, consider a higher demand for a currency in trade and tourism causes an 

appreciation in the currency or an increase in supply of currency by “Money printing” causes a depreciation of the currency.

Since the Australia’s border has been closed for several months, we observe the decline in Australian dollar relative to the US dollar for the past few months:

Furthermore, a currency’s inherent value can be determined by its purchasing power, convertibility, and stability. The purchasing power of a currency is determined by the amount of goods or services that one unit of that currency can purchase, whereas convertibility refers to the ease with which a particular type of money may be turned into other currencies or commodities such as gold or silver. Stability is defined as firms and consumers’ ability to rely on the market economy.

Australia’s economy has expanded consistently over the past 29 years without experiencing a recession (referring to my article Australia Economy Past Present and Future). This is a remarkable achievement by a developed economy with a small population of only 25 million people.

The Australian dollar is the currency of Australia, officially known as the dollar and symbolized by A$ or AU$ and is subdivided into 100 cents. It is also widely used as a reserve currency after the United States dollar and is frequently traded internationally on foreign exchange markets. Australia introduced the Australian dollar in 1966 to replace the Australian pound, which had been in circulation since 1910.

AUD-USD and AUD-HKD are both trading higher than the expected inflation rate. The consumer price index showed that the annual rate of inflation rose to 2.1% for the first quarter of 2018, above economists’ expectations of 1.9%. The Australian dollar is worth more than ever, as the price of gold continues to rise. The Australian dollar has made a

 record high against the US dollar and experts believe it will continue to climb as investors seek safe-haven assets like gold and the Australian dollar. Australia has the world’s largest gold mine and the world’s largest producer of gold, with around 50% of output coming from New South Wales.

Refer to the map above produced by the World Gold Council. It highlights the number of Gold mines currently active around the world. We see that the darker the gold color, the more gold mines that are active in that 

region/area. Globally, the largest and most active gold mines are in the Asia-Pacific region, particularly in regions of Australia, China and Russia.

According to the Triennial Central Bank Survey by the Bank of International Settlements, the Australian dollar is the fifth most traded currency in the world, making up approximately 7% of total daily trades compared with 88% for the USD. The Australian dollar is popular with traders because of its stable political environment and its consistent economic growth over many years. Australia has maintained its credit rating with a triple AAA rating (score 100 points) by S & P, compared to Hong Kong’s credit rating of AA+ (score 90 points).

Fiat Currency vs Gold Standard

A gold standard monetary system is one in which the standard economic unit of account is denominated in gold. Typically, traders in such a system will convert paper currency at a set rate to the underlying precious metal. Gold is classified into three different forms: specie, bullion, and exchange. A coin is a little piece of metal having a monetary value stamped on it by the government. Bullion is a term that refers to pure gold bars. The term “exchange” refers to the market activity of buying and selling gold.

In fact, we can only assert that gold has been used as money for thousands of years, as evidenced by the Egyptians, the Roman Empire, and the Chinese civilizations, among others. However, more recently, in 1945, following the devastation of WWII and the lessons learnt from the German hyperinflation crisis during WWI, the Bretton Woods Agreement established a new gold standard. This was a critical accord not only for renewing trade between countries, but also for global trade stability, which was predicated on trust in the USD being supported by a gold standard.

The Australian gold standard was the first attempted use of a gold standard in the history of the Commonwealth of Australia. It was introduced with the passing of the Gold Standard Act on September 28, 1903 by the Fisher Labor government. It lasted until February 14, 1931, when it was effectively repealed by Prime Minister Joseph Lyons, despite both major political parties having campaigned against its abolition in the 1929 election. It was not technically a true gold standard system at its introduction because Britain retained some control over Australian monetary policy.

However, in 1973, US President Nixon broke the gold standard due to the US being unable to pay its expenses in the Vietnam War and essentially abusing its role as the reserve currency. Thus, the Bretton Woods agreement came to an end.

The Bretton Woods Agreement was signed in New Hampshire, the USA on 22nd July 1944. It was established by 44 countries for the restoration of the international monetary order after the

conclusion of World War II. It took place in New Hampshire; hence its name Bretton Woods. The agreement set out a new system of rules and regulations which were aimed at addressing the problems arising from the Great Depression and to help prevent such economic disasters.

 

Following the end of World War II, the international monetary system was in disarray. The Bretton Woods Agreement—signed by 44 nations—had established a gold standard for international trade. But by 1970, Free Trade 

Agreements had been signed with over 60 countries, and the United States was running a trade deficit. These issues were exacerbated by President Nixon’s campaign promise to end wage and price controls.

Hyperinflation Crisis

As you can see in the graph on the inflation rate of United States of America. This is a recent data released by the US government, just in month of October 2021. US inflation has reached a new record of 31 year high.

This is becoming very concerning, inflation should not surpass on average 2-3% per annum. However, in the US inflation has grown to above 4-5% in the past 4 months.

In 1971, known as the “Nixon Shock”, US president Nixon broke the gold standard in the USD, making all currencies known as “Fiat Currency”. President Richard M. Nixon decided to shift the nation’s foreign policy emphasis from containment of communism to a more pro-active stance. In what came to be known as his New Economic Policy (NEP), which included wage and price controls, import quotas, and tax reforms, he sought to create an environment conducive to business expansion and recovery.

Why Australia is the hidden Gold Mine of the world?

Why Australia is the hidden Gold Mine of the world?

Posted on by cheekcheekgi

Why Australia is the hidden Gold Mine of the world?

Australia comprises a land area of about 7.692 million square kilometers and is the smallest of the world’s continents. Yet, Australia’s natural wonders and its rich history make it one of the MOST beautiful and diverse countries in the world. Australia is one of the wealthiest countries in the world; it is a country rich in natural resources. Its natural resources are mainly agricultural, mining, and energy include gold, coal, iron ore, copper, silver, uranium, and nickel. These minerals are vital for our everyday lives as they help to power homes with electricity and manufacture products that we use every day like mobile phones and cars. It is also known for its abundant oil, natural gas, and renewable energy sources.
In 1851, the Australian Gold Rush started when gold was first discovered in New South Wales, Australia, and just four years later, the country had already produced 1.5 million ounces of gold worth approx. AUD$29 million. In modern terms, that’s about AUD$15 billion or HK$90 billion.  In 1858, there were 154 active mines in Australia, and by 1867, this number had risen to 963.  It was the peak of production for gold mining in the nation, and it continued into the 20th century and beyond.
According to an article published in the “Australian Financial Review,” the total worth of Australia’s gold rush is approximately USD $5.3 trillion. 

this estimate does not include the value of precious metals that have yet to be mined, nor does it include minerals currently being exploited.
 
In 2021, Australia became the biggest gold producer in the world, overtaking China for the first time. This abundance has given rise to an active mining industry that exports a variety of minerals to other countries worldwide. The mining activity injects money into the Australian economy as well as making it one of the leading producers of many natural resources.
Australia is also the leader in exporting iron ore to the rest of the world. As shown in the graph above, as of 2020, Australia contributes 56% of the total iron ore distribution in the world. The major iron ore export markets for Australia include Japan (36%), South Korea (27%),
and China (20%).
In 2021, Australia became the biggest gold producer in the world, overtaking China for the first time. This abundance has given rise to an active mining industry that exports a variety of minerals to other countries worldwide. The mining activity injects money into the Australian economy as well as making it one of the leading producers of many natural resources.

Now, how to invest in Australia’s natural resources?

Some of the world’s largest mining companies come from Australia. We are talking about BHP, Rio Tino, Fortescue Metals Group etc. They produce iron ore, coal, petroleum, copper, natural gas, nickel, and uranium, etc.

 

I’d like to discuss with you this in detail. If you are interested in learning more about how investing in Australia’s natural resources could benefit you or learning more about doing business with Australia, contact me today!

Sources:
https://insiderguides.com.au/brief-guide-history-australia/
https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/australia-to-continue-to-supply-most-of-china-8217-s-iron-ore-despite-trade-tensions-59208917
https://www.statista.com/statistics/300328/top-exporting-countries-of-iron-ore/
https://www.tradingview.com/screener/
https://www.rba.gov.au/qa/gold-holding.html
https://www.dmp.wa.gov.au/Investors/Gold-1480.aspx
Australia in 2021 – Tourism and Investment

Australia in 2021 – Tourism and Investment

Posted on by cheekcheekgi

Australia in 2021 – Tourism and Investment

There’s Nothing Like Australia, highlighting some of the very best attractions and experiences Australia has to offer. Prime Minister Scott Morrison has announced that, starting on 1st of November its international borders will reopen back to the rest of the world. In New South Wales (NSW), which has reached over 80 per cent vaccination rates. “Fully vaccinated Australians and permanent residents arriving in NSW will be able to home quarantine for a week, instead of paying thousands to quarantine at a hotel for a fortnight.” This is not only a great news for the people of Australia but also great news for you. More than its best attractions, Australia is great place to invest your money. Here I am going to tell you why and how we should look at Australia as an investment opportunity There are two main reasons to buy real estate in Australia (either for immigration or investment purposes). 
  1. Buying real estate in Australia will allow you to invest in a piece of the “Australian dream”!
  • Property investment is common around the world, but Australia has a unique opportunity for investors due to the housing market proven to be stable and highly valued over the years. That is due to strong demand from buyers of both domestically, and internationally. 
  • When you buy a real estate property in many other countries, you do not get the chance to own a land and house 100% fully 
  • Australia has been a nation of immigrants since its founding and has become a tolerant and multicultural society with an absolute rejection of racial discrimination and is considered one of the safest countries worldwide due to low crime rates and efficient police forces that contributed to its peaceful society that led to an influx of international migrants in recent years.
Example:  Referring to article (Past, Present, and Future of Australian Economy), Australia had experienced a continuous economic growth and had not experienced recession in over 29 years. As one of the strongest economies among the developed economies, it has attracted many foreign buyers into the real estate property market. You may be wondering why you should invest in foreign properties, especially given the high cost of real estate in Hong Kong. By owning a property of you own, you can travel to Australia for work or retire in the future. 
  1. An unique investment opportunity recently emerged called “National Disability Insurance Scheme (NDIS). The project was introduced by the Morrison Government which was passed in its latest Government Budget Stimulus Package. The purpose of this project is to provide affordable housing for local disability Australians. The Australian government is proposing a guarantee rental income of approx. 7% to 8% per year for at least 7 years.
See image below: Interest rates are at all time low right now in Australia, for example you can apply for a fixed-rate loan for investment that generates a guaranteed income over a set number of period. If you are looking into real estate investing for a way to make money, Australia is one of the best places you could choose.  The country offers excellent opportunities for property investment because of its booming economy and relatively low tax rate. To learn more about investing in Australia, contact me today!  admin@ryanmow.com #australiatourism #investinrealestateaustralia #realestateinvesting #investmentproperty #realestate 
Australia Miracle Growth Economy

Australia Miracle Growth Economy

Posted on by cheekcheekgi

Australia “Miracle Growth” Economy: A Look at the Past, Present, and Future of The Australian Economy

Over the past 30 years, Australia has been one of the most successful economies in the world despite the global financial crisis of 2008-09 and record low-interest rates. The Australian economy, and its working population, have grown steadily since World War II to become one of the largest in the world. A remarkable achievement for a big nation to have enjoyed a continuous 29 years of economic growth without a recession is widely referred as a “miracle”. The economy was able to create over two million jobs with a small population of 25 million people and build up a pool of US$1.3 trillion in household wealth. This signifies the stability and ability to keep growing, despite all odds and challenges placed before it.

 Currently, the Australian economy is the world’s 12th largest and the 5th Fastest-Growing economy in the World by nominal GDP. Australia’s economic growth rate of 3.7% in 2013 was faster than any other OECD nation and one of the “Four Asian Tigers”. Its GDP of more than US$1 trillion ranks 8th in the world. Australia has a per capita GDP of about US$44,200, which earns it the 14th position on the list of countries by per capita income. It is also referred to as a “newly-industrialized country” as it has transformed from an agricultural-based economy to one based on manufacturing, services, and mining.

 Australia has been a popular destination for millions of migrants since the turn of the century. According to figures, Australia is home to around 25 million people. The top migrants in Australia are India and United Kingdom, who are also the most likely to obtain Australian citizenship. The country’s unemployment rate hovers around 3-5%, which means that there are still more jobs available in the market. While consumer prices continue to grow at a slower pace than other countries in the region. Authorities have managed to keep inflation under control while ensuring economic growth remains strong.

 Real Estate Market

The past 10 years have seen the real estate prices of Australian homes rise to what has been called “crazy” numbers as property prices in Australia have increased by a staggering amount. In 2007, the average house price was approx. AUD$386,929. In 2016 that number rose to a whopping AUD$706,821 – an increase of almost 100%.

 For example, in Sydney, the median house price has shot up by more than 80% since 2009. In Melbourne, it surged by more than 90%. Even in Adelaide, which is widely regarded as the most affordable capital city in Australia with a relatively low cost of living, house prices have also risen at an average rate of 20%, outpacing wage growth over this period.

 If you are currently a resident or an expatriate living in Hong Kong and looking for offshore investment opportunities. Australia should be one of the prospective markets on your radar. One of the main benefits of real estate investment in Australia is that you have ability to own 100% both land and houses in Australia. Among all the developed countries in the world Australia allow foreigners to fully own houses and land legally provided that they have passed the Foreign Investment Review Board (FIRB) that “examines proposals by foreign persons to invest in Australia…” Foreigners are allowed to own houses and land entirely provided that they obey certain laws set by the government.

 If you are interested to learn more about investing in Australia, you can act now and contact me at admin@ryanmow.com to discuss further.

 Source:
https://www.bloomberg.com/news/articles/2020-06-03/australia-economy-contracts-as-end-to-recession-free-run-looms

https://www.aussie.com.au/plan-compare/property-reports/25-years-of-housing-trends-property-market-report.html