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What Does Financial Freedom Mean To You?
By: Dr Chan Yan Chong
Articles (200) Profile

US 0% Interest Rates to Stay

I have repeatedly said that the US stock market is unable to stay at its high level for a long period. This is the reason why someone will think that Wall Street has lost steam every time there is a minor correction. However, although the market has been enjoying the bull run for many years now, there seems to be some steam left in it.

Source: Politico

The Dow Jones Industrial Average has scaled yet another high after shedding a few hundred points, boosted by comments from Federal Reserve Chairwoman, Janet Yellen. On 24 February, Yellen said in an outright manner that the Fed will not raise interest rates in the next few meetings.

With a high degree of certainty, the Fed will not raise rates before September, giving stock market investors a reason to be excited. Against this backdrop, the future of the Singapore stock market should look good for now. So, I wish for everyone to have a prosperous and fruitful Year of the Goat!

Greece and the Euro

It turns out that the newly sworn-in Greek government is not so unyielding after all, as it showed willingness to negotiate with its creditors. The issue of Greece’s debt has been used by speculators to punt the market time and again.

In actual fact, this persisting issue will not be resolved any time soon, until Greece ultimately exits the Euro zone. However, both Germany and France – the de facto leaders of the European Union (EU) – do not wish to see this happening, for that would signal the collapse of the Euro currency.

Source: Globalforextalk

Should the Euro collapse, the EU will become a weak coalition, similar to the Association of Southeast Asian Nations. At that point, Germany and France might end up as a couple of medium-sized countries with lesser international influence than Japan.

Greece’s new government understood this unspoken fear of the German and French political leaders, which is why it has taken such a tough stance in its demands for creditors to cut its debts. Stalemates during the ongoing negotiations have provided opportunities for punters in the stock market.

However, with everyone guessing how this situation will play out, the nay-sayers in the stock market, who do not see much profits to come from the current market, will not hold for long but would rather cash out whenever they have made a profit.

Germany is a rich country, and has a ridiculously low interest rate on its sovereign debt. There is in fact no need for the European Central Bank to implement quantitative easing to save the EU’s economies; all that they need is for the German government to invest in a pan-Europe infrastructure building spree, and the unemployment rate of the whole of Europe will fall immediately.

China to Soar in Goat Year?

On its last trading day in the Year of the Horse, the Shanghai Composite Index hit 3,246 points, representing a 60 percent growth year-on-year and making the Chinese stock market the best performing stock market of the last lunar year. Let us hope that the Chinese stock market will continue to charge ahead in the Year of the Goat.

What might make the Chinese stock market rise again? Money. Beijing is rich, and so are the Chinese people. The Chinese government has been saving up and increasing its foreign reserves for the past 30 years and it is now time to use this hoarded wealth. When the government spends, there is inflow of funds into the stock market, which is positive for share prices.

Source: iStockphoto

Invest for Financial Freedom

As with food, there are different tastes of life. At what stage are you in life? How do you face life with optimism? How can you add sweetness to your life, so that you can live life to the fullest?

Source: middaughfinancial

I have recently published another book entitled, A Rich and Free Life 1. This is the first book of a set of two, in which I will share my philosophy of investing in the stock market. The following book will be focused on my investment in properties. Through these two books, I wish to teach everyone about investing and leading a rich and free life.

In the new book, I shared my original method of stock investment, which I named the 10S method. If you follow the steps outlined in this method, you can be on your way to a rich and free life by investing in shares.

This is why I need to have a good talk with you personally, for I do not wish to talk about shares and investing in a general, ambiguous manner. I wish to treat you as my friend, and I sincerely hope for you to understand that if you agree that money affects your life experiences, then it is necessary for you to know the ways to increase your wealth.

Through investing wisely, I do not need to worry about providing for the necessities of life today. Since young, I have already realised the importance and the need for an investment strategy to provide for my later years.

The earlier you start, the greater it will work in your favour. Eventually, you might reach a state where you work simply out of interests rather than for provisions of life’s necessities. It will not only benefit you, but also your family and future generations.

So what does it mean to live a rich and free life? Many would simply define it as having financial freedom, feeling contentment from having sufficient money. I beg to differ.

Be Rich and Free

 

Source: createyoursuccess

Although it is good to have cash at one’s disposal, there is a difference between being ‘cash rich’ and being ‘rich’. While it is true that to be rich and free, you have to start by not having to worry about money and live life comfortably; more importantly, when you do not need to worry about money, you are able do the things you like, enhance your life, and energise yourself.

The term ‘rich’ embodies two very different ideals. What does being ‘rich’ mean? Greed knows no boundaries, and for this reason, I believe that when we pursue monetary gains we also need to know ‘contentment’.

So it is no longer about whether you have sufficient money, but rather whether you are contented. If you are only driven by the desire for more and more, you will never be contented and you will forever be like a hamster running on a wheel.

When you have earned enough money, you will not need to worry about money any more, and will be able to enjoy life more. To be free from worries over money is to have assets that generate a relatively stable monthly or yearly income, so that you can lead a carefree life.

To express this in a simple equation, it means your monthly rental income from your properties plus your monthly dividend income should be more than your monthly salary if you continue working.

There was a Chinese poet named Tao Yuanming who famously said, ‘I shall not break my back for five bushels of grain’. While I agree with his principle, the prerequisite is for you to already own that amount of rice in the first place. Otherwise, you might follow the path of Tao, who forsook this asset and led a pitiful life in his later years.

If you do not wish to end up like him, you need to put your finances together early and make preparations for your future; set your sights further, do not waste your window of investment opportunity.

Follow my 10S method, starting from the first S, and start paving your road to financial freedom. I am rich and free now, so I wish to share my success with you, earnestly wishing that you can also be rich and free, living out each day happily and not breaking your back for the basic provisions of your life.

Dr Chan Yan Chong is a renowned investment expert with many accolades under his belt.

Please click here for more information about this author.


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