Savings_Culture, Financial Literacy, Smart Spending in Brunei

Where I am with the project?

2010-06-01T19:14:00.003+10:00

Tomorrow, I will be presenting the blog and reporting to the class on the status of the project. So, I thought it would be better to post something about where I am in terms of implementating the project.

I am still at a an initial stage. I contacted the target group and also one of the local bank. I am quite happy with the positive response of the Bank. I am still waiting for any response from the target group. Since it is a very busy time at this period for students, I am still hopeful to get a response from them in the near future. Besides that, I also have created few pages on the blogsite where it serves as disseminating information with regards to financial planning. I mentioned in the project plan that the blogsite will also serves as a single-access-point to get in-depth information on financial planning. As part of the strategy to get input and feedback from the public particularly from the target group, I also created an on-line survey which can be accessed from the blogsite. So far the responses have been good but still not reach my target number of respondents (100 respondents).

What am I going to do next? I am yet to do analysis of the survey from which I can better understand the aspects in savings culture in Brunei, especially in trying to create a shared vision for this project. I am yet to get the support from the target group for the project to get implemented. I am also yet to do serious discussion with the Bank on the kind of involvement they willing to do. And finally, I am also yet to finalise with other stakeholders on whether the public talk on financial planning can be achieved. So as you can see it is still a long way to go to see this project up and running. Nevertheless, I intend to continue with this project after I finished my studies because I believe this project can make a positive change especially to the young generation, to highly value the importance of having proper financial plan.

What would I do if I'm a BILLIONAIRE?

2010-06-01T18:02:00.005+10:00

I guess becoming a billionaire is something that everyone would love to be in their lifetime, and perhaps the top favourite day dream thing in everyone's mind, well for those who are still not a billionaire that is. I thought I share with you with this article that I found in the internet. It's really interesting because it tells you about the billionaires who don't mind living like normal, average middle income people. They don't spalsh their money on anything and surprisingly they only spend modestly for themselves, and it can be argued some of us might spend even more than these guys. I hope this can become an encouragement for all of us to start saving and thinking about financial planning.

Enjoy reading . . . . .

5 Billionaires Living Below their Means

By Investopedia

At least once in your life -- maybe even once a week or once a day, for that matter -- you have fantasized about coming into a lot of money. What would you do if you were worth millions or even billions?

Some of you may do nothing at all. Believe it or not, there are millionaires and billionaires among us who masquerade as relatively normal, money-conscious people. Take a peek at some of the most frugal wealthy people in the world.

Warren Buffett
Millions of people read Warren Buffett's books and follow every move of his company, Berkshire Hathaway. But the real secret to Buffett's personal fortune may be his penchant for frugality. Buffett, who is worth an estimated $47 billion, eschews opulent homes and luxury items. He still lives in a modest home in Omaha, Neb., that he purchased for $31,500 more than 50 years ago. Although Buffett has dined in the best restaurants around the globe, given the choice, he would opt for a good burger and fries accompanied by a cold cherry Coke. When asked why he doesn't own a yacht, he responded, "Most toys are just a pain in the neck."

Carlos Slim Helú
While most of the world is very familiar with Bill Gates, the name Carlos Slim Helú rarely rings a bell. But it's a name worth knowing. Slim, a native of Mexico, was recently named the world’s richest person -- that's right, richer than the Microsoft co-founder. (Microsoft publishes MSN Money.) Slim is worth more than $53 billion, and, while he could afford the world's most extravagant luxuries, he rarely indulges. He, like Buffett, doesn't own a yacht or plane, and he has lived in the same home for more than 40 years.

Ingvar Kamprad
The founder of Swedish furniture phenomenon Ikea struck success with affordable, assemble-it-yourself furniture. For Ingvar Kamprad, figuring out how to save money isn't just for his customers, it's a high personal value. He's been quoted as saying, "Ikea people do not drive flashy cars or stay at luxury hotels." That goes for the founder as well. He flies coach for business, and when he needs to get around town locally, he either takes a bus or heads out in his 15-year-old Volvo 240 GL.

Chuck Feeney
Growing up in the wake of the Depression probably has something to do with Chuck Feeney’s frugality. With a personal motto of "I set out to work hard, not get rich," the co-founder of Duty Free Shoppers has quietly become a billionaire but even more secretively given almost all of it away through his foundation, Atlantic Philanthropies. In addition to giving more than $600 million to his alma mater, Cornell University, he has given billions to schools, research departments and hospitals.

Loath to spend if he doesn't have to, Feeney beats both Buffett and Kamprad in the donation category, giving out fewer grants than only the Ford and Bill & Melinda foundations. A frequent user of public transportation, Feeney flies economy class, buys clothes from retail stores and does not waste money on an extensive shoes closet, stating, "You can only wear one pair of shoes at a time." He raised his children in the same way, making them work the same normal summer jobs as most teens.

Frederik Meijer
If you live in the Midwest, chances are good that you shop at Frederik Meijer’s chain of grocery stores. Meijer is worth more than $5 billion, and nearly half of that was amassed when everyone else was watching their net worth drop in 2009. Like Buffett, he buys reasonably priced cars and drives them until they die, and, like Kamprad, he chooses affordable motels when traveling for work. Also, like others on this list, Meijer is focused on the good his wealth can provide to the community.

The bottom line
The little secret of some of the world's wealthiest people is that they rarely act like it. Instead of over-the-top spending, they're busy figuring out how to save and invest to have that much more in the future. It's a habit you might want to consider in order to build up your own little storehouse of cash.

This article was reported by Katie Adams for Investopedia.
Published May 12, 2010

Available at

http://articles.moneycentral.msn.com/SavingandDebt/SaveMoney/5-billionaires-living-below-their-means.aspx?page=1

Interesting Report

2010-05-31T11:45:00.006+10:00

A good friend of mind is kind enough emailing me '2010 Consumer Handbook' published by a government agency in USA. Included in the report, is information about financial products. Although this report is primarily intended for the use in USA, but I think there are some aspects of the report that we can learn from. You can visit http://www.consumeraction.gov/

Here is one of the content that might interest you .

Savings Culture Survey

2010-05-30T23:09:00.002+10:00

I am doing a small survey on Savings Culture in Brunei. The questionnaires are short and simple, and definitely easy to fill in. It only takes around 5 minutes. So please participate in this survey, it really help me out alot in terms of trying to better understand the aspects of Savings Culture in Brunei. I will try my best to share with you the survey outcome in the near future and may be try to get feedback from you. So keep visiting this blog, put it in your bookmark!!!

Finance Weblinks

2010-05-30T22:59:00.002+10:00

In doing my research on savings culture, I came across numerous websites that provide useful, practical and some what user friendly information on financial planning. It really do provide the readers with important financial knowledge. But I decided to limit the number of weblinks just to show you what I think the 3 best Personal Financial Planning and Financial Literacy websites. I think the 3 websites would be a good start for someone who are just thinking about this and just want to try something that is easy. If you have suggestions on other websites, please share it with me. I invite you to have a look at the Financial Weblinks page and check it out.

Financial Savvy Tips

2010-05-30T22:31:00.004+10:00

I created a page on Top Financial Savvy Tips where this page outline few tips that I got from my own experience as well as from few readings on financial planning. They are supposedly to be practical tips. Mind you that I have tried and still do all the tips and it really works. The tips are simple, easy to follow and you dont have to know anything about advanced financial planning. It is just pure common sense. I hope it is useful and beneficial to you.

Here I posted a video that I got from http://www.feelsmartabout.com/ where it simply tells us to have a different approach in the way we manage our money. Watch it and definitely you learn something from it.

Financial Naivety

2010-05-23T21:34:00.003+10:00

I read an article from Borneo Bulletin dated 10 May 2010 written by Kartini Knox entitled ‘Living Large – Bruneians in Debt’ ( http://brudirect.com/index.php/Columnist-Column/living-large-bruneiams-in-debt.html ). What is so interesting to me and particularly to this project is the situations that she described is exactly what this project is all about. She told several stories of unfortunate experiences of young people who were trapped into the credit cards and personal loans. She in a way highlighted the naivety and somewhat financially illiterate young people who just got into their working life and got tempted with the so-called generosity of the financial institutions which were queuing up to offer the best deal of the century to them. It is really a common story in Brunei where many of these young people would end up having to pay back their early mistakes well into the majority part of their working life and hence only provide limited amount for savings. As I mentioned in the project proposal and project plan, this project is all about creating awareness and raising consciousness on the importance of having proper financial plan. Initially the target group is the students in UBD who are going to graduate and who are going to join the workforce. Hopefully, if they are aware on its importance, just maybe they can make much better, well-informed and knowledgeable decisions with regards to their finances early in their working life.

How much is enough for retirement?

2010-04-25T21:04:00.003+10:00

Below is an article I found on the internet basically talking about how much money that they (in Malaysia) need in order to have a comfortable life during retirement. Interestingly my project is about creating awareness on having proper financial planning, which is very much related to this article. This issue is something that everyone need to seriously consider and not just in Brunei.

Kuching: Malaysians need at least RM1 million in retirement savings to live comfortably, says Sasitharan Krishnan, the senior director of Customer Relations ReMark Malaysia. He said based on research undertaken, most retirees in the country were unable to reach the needed savings and this caused them to look for jobs, even though retired. The failure to have adequate savings he added, was because, they did not plan their finances early and also due to the lack of a savings discipline. And, according to Sasitharan, the study also showed that savings in the Employee Provident Fund (EPF) could only last for three years.

-- Courtesy of New Sabah Times, 25 April 2010 --

Reflection as in Discussion Board

2010-04-14T12:43:00.002+10:00

Week 6

One of the challenges in doing the project plan is to identify the strategic framework that suits to the project. I have came across several frameworks and really not sure which one to use. I found the model by Arnstein (Ladder of Citizen Participation) which showed 3 main level of participation. I found one interesting model by Loorbach (Transition Management Cycle) where it talked about coordinated action across 3 levels. Another interesting model is by Beilharz (Cycles of Strength Based Change) where it explained the cycles in intervention action and strategies. I have to say all are very interesting and have their own unique qualities. Frankly speaking, I think all of the frameworks are somehow related and relevant to my project. The Arstein model would allow me to show the progressive strategies for the project (since I am doing it in phases). The Loorbach framework would enable me to categorising the strategy and action in 3 important levels (strategic, tactical and operational) where I can highlight the importance of each of the strategy. While the Beilharz framework can point out the importance of developing shared vision (which is the main part of my strategy). Is there anyone who has the same problem with me? It would be nice to hear from you.

Reflection as in Discussion Board WK5

2010-04-06T22:23:00.005+10:00

From this week onwards I will be posting a copy of my Main Weekly Reflection which I shared in the class discussion board. This will give the readers the opportunity to take a glimpse at my thoughts in doing this project and things that I learned along the way. I am hoping that the readers would be able to post their comments and feedbacks with regards to the reflection and this will provide me with well diverse perspectives from multiple angles. This would surely enrich my learning experience. Since this week is the first posting, I include the reflection from week 2 until week 5. Enjoy......

Week 2
On the last workshop, we were asked to share our ideas on the project that we intend to do, in a group that shared common interest (touchstone group). As it was just sharing our initial ideas, the thinking behind the project was still in-progress. So I was asked by one of the students what would the community gained through my project, how can it contributes towards community development? I was totally blanked, for which I haven’t actually given too much thought about it. Just to reflect on it, many of the readings suggested that community based projects are primarily seek to make positive change with the participation of the community in undertaking, collaborating and supporting the project. As highlighted by Beilharz (2002) community based projects should possessed the value of shared vision, where the community is empowered towards self- determination of the development or changes that they are aspiring to achieve. She also mentioned that some of community based projects are motivated by crisis or threats shared by the community where they perceived those issues needs to be addressed, hence achieving shared vision. What do I learn from here? In selecting a project for this course, I think it is worthwhile to think what are the problems, issues, crisis or threats that a community faced. Then build your ideas around those issues and narrow them down to create a much more meaningful project.

Week 3
This week I was trying to identify how a community development framework would look like. I found an interesting framework in a book written by Tesoriero (2010) entitled Community Development: Community Based Alternatives in an Age of Globalisation. Among others he stated that in an integrated community development, it is crucial to look into 6 dimensions which are social development, economic development, political development, cultural development, environmental development and personal/spiritual development. It is the utmost importance for any programs or strategies put in place to address all of the 6 dimensions. At my initial thought, this framework is focusing more on the overall programs and strategies. It is almost impossible for a single project, particularly for this course to address all 6 dimensions. However when I reflecting more on my project, the fundamentals of this framework allows us to look particular issues on a holistic perspective and not in a narrow view. In my opinion my project would formed part of a much bigger picture whereby it is expected to contribute towards productive and balanced community development. The challenge would be how to ensure the project fit with other community based projects so that it can be integrated in a bigger picture and to ensure it is coherent.

Week 4
This week I spend much time reflecting on the feedback from Lynda regarding the project proposal. She highlighted one important point, which is the need to be clear on the things that I intend to do particularly the focus of my project, whether it is focusing to undertake awareness campaign on the issue or creating some sort of educational program for the target group. Interestingly her feedback somehow reminded me of a book that I read few weeks ago by Linda Beilharz (2002). In that book, she stresses the importance of shared vision in the community. Social change can only happened if the community is in consensus on what they are aiming for. The vision, goal or objective must be clearly understood by the community in order for them truly value its importance and its significance to them. Reflecting back to my project, having to think the long term benefit of the project, I guess at this juncture it is essential for me to develop some sort of shared vision within the target group by undertaking awareness campaign. Hopefully by doing so, I can establish a strong foundation towards a much more cohesive strategy for social change in the future.

Week 5
I felt that our last workshop was a bit different from the others. I thought we were given more opportunities to reflect on our thoughts and our projects. We were also given the opportunity to talk to one another on our projects a bit more. From the many discussions I had, the one that I have with Heather was one that stuck on my mind. She shared her experience on one of her projects that she is doing where she uses an online survey to get input and feedbacks from her target group. She told me that she uses www.surveymonkey.com where the website offers free online survey services. Reflecting back to my project, I think an online survey would suits it really well since I am doing a project back home, this can be a very useful tool for me as part of my engagement process. The survey questions can be structured to find out or supporting my system analysis; as to identifying what they are thinking on the structure of the system particularly their feedback on the system’s strengths and weaknesses. It also helps me in terms of trying to get their participation by providing valuable feedback to my project. And finally I can test some of the risk management mechanisms whether it would be responded positively. I think this is a very useful tool especially for those of you who do not have direct access to your target group.

The Project

2010-03-25T18:01:00.002+10:00

I just posted the project proposal where you can find it under the 'Project Proposal' page. I invite you to read it and post comments. I suspect that you might be more confused on the project. You might asking yourself this question 'What is this guy trying to do?

Financial literacy has never been a concern for us in Brunei. We are just very lucky where we enjoy a comfortable and somewhat prosperous live, where most of that wealth derived from oil and gas. I also feel to be very lucky where the country still can afford to provide free high quality education, healthcare, highly subsidised electricity, water, fuel (for our cars), housing and so forth. I guess all these luxuries made us complacent and think that life will always be this good. Not until recently that we started to realise that we have been wasting our money, imprudent spending and to some people fallen to the debt-ridden trap. I feel that I need to do something, at least to make the public aware on the importance of financial planning. My project intentionally targeting the newly UBD graduates. It is important for them to have proper financial literacy before they entering the workforce, in other words, to have the adequate financial skills to manage their newly found wealth and before they making catastrophic financial mistake.

It is just amazing to know that we are not alone facing this problem. Below I found a Youtube video showing 7 youth in Canada who has different perspectives on financial matters. I guess, this represented somewhat similar to this project, trying to change their mindset and advocating positive change in their live.

Finally your support is the utmost critical importance for the success of this project. Feel free to post comments. If you have something to offer to me, it is most appreciated.

Welcoming Remarks

2010-03-09T09:54:00.001+10:00

This is where I study since early 2009 and I am in my final semester! Studying or rather learning here in UQ so far has been a very interesting journey for me. I never expected to learn so many things and gain so many knowledge in such a short period of time. For sure, learning is a lifelong journey and UQ has been an outstanding platform for me to explore to other unchartered territory. For that, I am proud to say this is truly The University of Khairul!

Believe it or not, as part of the course 'Community Planning, Engagement and Governance' I am required to create a blog to discuss a community/social issue of my interest. I decided to explore the issue of prudent spending and savings culture. This issue has been a major social issue back home in Brunei Darussalam. Just to show how significant this issue is, His Majesty the Sultan had mentioned in not less than 3 occasions (in 15 July 2008, 15 July 2009 & 1 Jan 2010) the importance of inculcating the culture of savings in order to maintain the welfare and prosperity of the population.

This blogspot would hopefully becoming a useful platform for constructive discussions on the issue of savings_culture. Ultimately, it can inspire people to change and embrace a SMART lifestyle.....