By Andrew Wong    19th Nov.2004

Learning to Manage and Grow Money

There are enquiries about joining this QuaSyLaTic Internet Tuition Class on Technical Analysis. As this tuition class is a one year period duration, commitment in term of tuition fee and time to learn and practice is crucial on the part of the learning. 
 
This write up is to give a better perspective on management of personal finance and investment so that the intended learners have a better ideas of the requirements of the learning commitment.
 
Distinctions between Financial Planning and Investment
 
Many interested learners to the above tuition class start with the idea of improving their financial situation. To do so, there are many ways to go about it, and this internet tuition class on the necessary knowledge and skills is just one of the many ways. Each person has his own inclination and preference as what suits him or her best.
 
Hence without a good understanding or one's own learning needs, hasty decision to pay the tuition fee and join the above class may not help in one achieving the financial goals.
 
Improving financial situation is very much linked to financial planning, We will start by talking about financial planning.
 
Financial Planning
 
We will examine a few typical types of behaviors that show lack of financial planning. Readers may be able to identify whether or not they belong to one of these categories.
 
  1. Recognize the importance of adequate finance, but have no clue what really is the quantum of the financial needs, now and into the future. (Future is taken as the timeframe one says bye-bye to this world, with the corresponding living scenarios of the loved ones.)

  2. Have the insecure idea that there is not enough money, Hence work very hard for extra salary, promotion, business, or investment.

    2.1 They may work very hard, but not smart. They stress and exhaust themselves, end up sick or not effective in achieving the sense of secured finance.

    2.2  Without good knowledge and skills, they lose money in business or investment, making their financial situation even worse.. 

    2.3  They earn a lot of money, either through saving, business or investment. But they make too much money, more than what they need. By the time they say bye-bye to this earth, they have to quickly give the excessive sum of money to charity in their names, as they can't bring their fortune to the grave.

     

  3. They think and feel that they are financially OK. After all they are not greedy. No need to make too much money. Until one day they get a wake-up call, cashflow is negative due to many expenses not planned.

A good financial planning should avoid all the above. Planning means you make assumptions about your preferred future and examine the deviation from today way of living. If there is gap, one should find means to reduce the gap. If there is no gap, one should think of innovative ideas how to make full use of the extra wealth meaningfully.

Some interested learners may only need to work on a good financial planning to find out the financial situation from now till future. In this case, there is no need to join the tuition class (save the tuition fee, which is on different subject of learning)

For the financial planning, a useful tool is the electronic spreadsheet, where you create the variables that represent your lifestyle and project to the future. You could email me for a free copy of the Cashflow Template spreadsheet, but you need to make some modification to suit your lifestyle and future preference..

Either you pick up the knowledge and skills on the use of spreadsheet (e.g Excel) by self learning in buying a book on spreadsheet, or sign up a tuition class in your area (I do not give tuition on spreadsheet, as it is commonly available. I only concentrate on Technical Analysis tuition, which is not at all common), get someone you feel comfortable to do the financial planning for you. (You are welcome to get my service on this, without fee. Email me).

Investment

There can be two good reasons or motivation for one who want to learn more about investment, i.e. using the available money and park on some investment instruments, with the view of larger positive return after a period of time.

One reason is for those who have done the financial planning and see the gap between current situation and the projected financial needs for himself, herself or family.

Especially for employee or salary earner. one would like to learn the appropriate knowledge and skills to enable their saving with growth rate of higher and better return than the bank or fixed deposit.

Or, there is another group of learners, with or without the financial planning consideration, take it as a challenge to learn the necessary knowledge and skills in using technical analysis (TA) to intervene into the market at the right timing for a handsome gain. It is like those who enjoy and to perfect their skills in music, golf or conquer the highest mountain.

From my observations, most do not have the discipline in learning and acquiring the skills in investment, they prefer me to manage their investment accounts, i.e. to make money for them. 

TA, what does it involve?

Technical Analysis is a branch of science to study the market behavior, using graphs and mathematical models. (Note: we do not need advanced maths, but secondary school level suffice) The aim is to be able to make sound judgment to buy low and sell high for a handsome profit.

At the same time, TA is not at all just mathematics, techniques, but  also psychology, emotion and discipline.

The internet tuition class emphases a lot on practice after giving lessons on the theories and tools on TA. 

It is hoped that the above clarification gives a better background before you feel like signing up with the Internet Tuition Class on Technical Analysis



End.

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