Many of you may welcome with anticipation the government’s cash payout scheme announced earlier this year. Application opens right on Father’s Day this year, 21 June 2020, and you can receive the HK$10K cash handout from the government as early as 8 July.
While details of the scheme can be found on the official website, I’m more interested in sharing with you my thoughts on the concerned money matters.
Emergency Fund
Hong Kong’s economy has undoubtedly slipped into a recession, with unemployment rate on the rise. In the past when the economy was good, people are more than happy to receive the extra fund from the government. However, under current economic conditions, the money serves more purposes than merely icing on the cake. Everyone has different approaches when it comes to making use of the HK$10K. For those facing financial difficulties, the money can be used to meet immediate needs. For those with a stable source of income, the money can be used for shopping to reinvigorate the economy, or simply set aside for a rainy day.
Back in the days when the economy is good, not everyone would be bothered to think about the importance of an emergency fund. The emergency fund that you set aside can in fact help weather the rougher times, such as unemployment, while leaving your savings and finances intact. Emergency fund is a type of idle liquidity, not to be used for any investment at all. The optimal emergency fund amount varies from person to person, but generally speaking, an amount equivalent to six months’ worth of expenses is regarded as sufficient.
Make use of online money management tools
The government offers different registration options, including electronic submissions and paper registration forms. Among all options available, applying through online banking is the easiest and fastest. Basically, all you need to do is enter your telephone and account number, and you’re set.
As a matter of fact, online banking is becoming the norm, meeting most of our banking needs, such as making payments, transfers and even investments.
Helping the elderly
For the younger generation, enrolment into the programme is simple and easy enough. However, the same cannot be said for seniors, especially those who are without online banking access, not familiar with electronic services, or illiterate. Take some time to help them out – be it signing up for online banking services, downloading, filling out or submitting the forms.
