IntroductionIn this report, I will use the knowledge and skills that I have learnt from this course to develop a 10-year action plan for achieving my financial goals and non-financial goals. Determine Current Financial SituationAssociate student of Community College of City UniversityMonthly income $3600( $2600 from family and $1000 from part-time job)Do not have any investment experienceHave less capital for investmentSetting of Goals For my goals, the goal-setting guidelines in Appendix A is essential to develop a plan that will efficiently pave the way to achievement of my goals. I will categorize my goals in 3 stages (Short-term, intermediate-term and long-term goals) My 10 years planning is-GoalsTime frameShort term(within 1 year)2017-2018 Graduated from associate degree and continue study in bachelor degreeIntermediate-term(Between 1-3 years)2018-2020 Graduated from bachelor degree2018-2020 Save $1,000 per monthLong term(Longer than 3 years)2020-2027 Find a full-time job to earn money for investment2020-2027 Save $5,000 per month 2020-2027 Keep saving and invest in different stocks/bonds/funds 2020-2027 Buy an apartment How to Achieve My Goals EducationIn order to achieve my goal, further study in bachelor degree after my graduation from associate degree is the first thing on the to-do list. It has two main reasons for continuing my study and the study fees will cost around $134,600, according to the calculation in Appendix B.1. For my future developmentSince I am studying in business, further study in bachelor degree can provide more knowledge and skills for my future development, such as how to choose a stock to invest and how to manage my money. These knowledge and skills can help me to have a better financial planning and managing my money in a better way so as to achieve my goals in the future.2. Increase competitiveness for future careerAccording to the statistical table in Appendix C from the University committee, it shows that in 2016/17 school year, there are 82,381 full time bachelor degree students graduated. It means that nowadays, graduation from a bachelor degree change is a common practice in Hong Kong. As an accounting student, working in Big Four is one of my goal and also many accounting students’ goals. Since there has large competition, without a bachelor degree, it will be much harder to get a chance of working in Big Four.To earn money and save for investmentMonthly income (Student)Income($)3600Less: Expenses($) Clothing1000 Eating1000 Entertainment500 Transportation300Monthly saving($)800Yearly Saving($)9600Saving Ratio22.22%Saving goal($)1000In the following three years, as I wish to continue my study, the income of a student mainly relies on family and part-time job. My recent monthly saving is not enough to reach my saving goal as shown in the table. The major expenditure is food and clothing while it is impossible to reduce the fees for basic necessity (like eating) and transportation. Therefore, I should try to reduce the expenditure on clothing, like buying cheaper clothes or shoes, and entertainment, like watching movie. Alternatively, I can do more entertainment which is free, like doing more sports.Monthly income (Working)Income($)( Expect to increase every year)13,000Less: Expenses($) Clothing3,000 Eating3,000 Entertainment2,000 Transportation1,000 Telephone service charge150 Loan repayment (Calculation showed in Appendix D)818.5116Monthly saving($)3,031.4884Yearly Saving($)36,377.8608Saving Ratio23.32%Saving Goal5000In the following seven years, I will start working, the income of an employee mainly come from the income. From the table, it has revealed that my monthly saving is $3,031.4884 which is much lower than the goal of $5,000. The major expenditure is food and clothing but it is impossible to reduce the fees for basic necessity (like eating). Therefore, I should try to increase the monthly saving in two ways. First, I should work hard in my job and try to get a chance of promotion or increasing my salaries. The second way is to reduce my expenditure in clothing in order to save more money for my investment.InvestmentFrom the calculation mentioned before, my monthly saving could be around $3,000. I will allocate it to three parts. The first part is the emergency use and I will allocate $500 per month for this. Second is saving $500 for purchase of house. At last, I will allocate $2,000 per month for investment. Allocating more money in investment than saving for house is because I want to generate more money from investment for buying a house. Consideration of investment:High returnRisk level as low as possiblePrice that cost one to five monthly savingsComparison of different investment:StocksBondsFundsRiskHighestlowestRelatively lowReturnHighestlowestRelatively lowPriceDepends on the stockDepends on the stockLowOwnership of the companyYesNoNoAfter the comparison above, I will choose stocks to invest. Although the stocks have the highest risk, but it also provides the highest return which can generate more income for me to buy a house. On top of that, I can also choose the stock which is a relatively low risk to invest.Stock investmentThe Hong Kong and China Gas Company Limited(Towngas) (HKG:0003)Town Gas was Hong Kong’s first public utility and one of the largest energy suppliers in Hong Kong. Town Gas also has more than 240 projects are going on, including piped city-gas projects, upstream and midstream developments, water and wastewater treatment schemes etc.I choose Towngas as my investment choice has three reasons. 1. It provides town gas to Hong Kong citizen. It supplies town gas to about 1.9 million customers in Hong Kong. It means that many Hong Kong people are relying on their supply, so that their revenue will not decrease and may increase in the future after they expand their networks.2. The trend of the stock price keeps increasing.From the graph above, it shows that the stock price of Towngas continues increasing and it means that it is a good long-term investment and it guarantees return in long term. On top of that, it also has 2.24 dividend yield. It means that I may get income from the dividend.3. The stock price is within my requirementThe stock price of Towngas is $14.78 and its lot size is 1000 which means that I need to use $14780 to buy a lot of Towngas and It is within my requirement of 5 monthly saving($15,000).Housing DecisionsAs mentioned above, $500 of the saving is allocated for housing per month. And after 7 years (Years that having a job), the total saving for housing is $42,000, which is obviously not enough for buying a house. Therefore, the possible housing alternatives for me are renting a house or use to income from the investment to buy a house by HOS.RentingPurchasing HOS(Through Green Form)CostsAround $10,000-15,000 per month$200,000 for a 4m HOSAdvantagesEasier to moveLower maintenance and responsibilitiesLower initial costHave ownershipLifestyle flexibilityDeduct property taxesDisadvantagesNo tax benefitsHave restriction from the house ownerLimited liquidityFinancial uncertaintyHigher living costsEvaluationFrom the table above, it shows that both renting and purchasing HOS is not suitable for me. It is because the cost of renting and purchasing HOS are too high for me(monthly saving $3,000). Therefore, I may delay the purchasing of HOS after ten years and keep living with my family.ConclusionIn conclusion, for my investment, I will choose the Towngas stocks. For education, I will continue study in Bachelor degree. On top of that, I also need to work hard on the investment and education goals in order to generate more income for purchasing a house after this ten years.