Holds an average of
4.7
types of investments & Insurance products.
Hong Kong people’s financial fitness suffered a slight reversal in 2022 due to the challenge of maintaining healthy money habits in the less-than-hospitable economic environment brought on by the pandemic. Even though the Hang Seng Index dropped 15.5% in 20221, not everyone lost ground financially. In fact, some of them managed to buck the trend, outperforming the rest and staying on top of inflation last year2.
How did so many people do so well in an economic slowdown? What sets them apart from the rest? What can we learn from them?
Let’s take a look the numbers!
2%or more
return from their liquid assets last year
86%
of the winners are financially very fit / moderately fit3
Winners don’t believe in a static approach to managing their wealth. They make a point of complementing their primary source of income with a second one, typically by placing a stronger emphasis on diversified investments for generating more dynamic growth. This dual-income strategy enables them to enjoy added financial security and actively plan for possible down-cycles.
Holds an average of
4.7
types of investments & Insurance products.
Maintained a balanced split with
50%
of assets in savings and investment.
Holds an average of
1.6
types of investments & Insurance products.
Placed majority of assets in Savings (79%), and only
21%
for investment.
“Downturn Winners” also explore opportunities for boosting their income through other means.
48%
Have alternative investments.
65%
Use their spare time to earn an extra income.
Market uncertainty in 2022 may have taken a toll on long-term financial planning for the majority of Hong Kong people. But winners / financially fit individuals have managed to maintain their long-term plans and financial goals.
of the Very Fit have updated their risk tolerance level in past 12 months (vs 2% of the Unfit).
of the Very Fit understand their life goals and have made financial plans (vs 15% of the Unfit).
of the Very Fit review their financial plans at least once a year (vs 21% of the Unfit).
of the Very Fit have a comprehensive financial plan for retirement (vs 9% of the Unfit).
In 2022, interest rate increases (resulting in larger loan and mortgage repayment amounts) led to a reduction in savings and investment. But the Very Fit remained more disciplined in budget control and expense monitoring.
of the Very fit monitor their spending (vs 37% of the Unfit).
of the Very Fit have a budget plan in place (vs 26% of the Unfit).
Being FinFit doesn’t necessarily mean being rich or making a lot of money. What it does mean is developing a healthy financial mindset, setting clear financial goals, being always prepared and reviewing your finances regularly.
To find out how fit you are financially, take a few minutes to complete our online FinFit test. The results will help you work out the next steps on your journey to financial fitness and new personal milestones.
You can also click here to take a closer look into the survey findings on each of the 4 FinFit pillars:
Get more insights on how to boost your overall financial fitness!
