Becoming rich and able to meet all financial needs without difficulty is the hope of the majority of people in the world. It's no wonder, then, that high-paying jobs and ideas on how to build your own business empire are popular in many countries.

Many people forget, being rich is not just a matter of office work or how many businesses are run. Money management and control are no less important keys to achieving financial stability. Well, this time I will explain the secret of managing money that is embraced by ethnic Chinese.

This article is not at all meant to say one ethnicity is better than another, yes. There's nothing wrong with opening yourself up to learn useful things from those who have proven successful in doing it, right?

1. In Chinese Confucianism, Being Thrifty Is a Virtue

Appreciating money and trying to always be frugal cannot be separated from the value of the Confucian belief which is widely embraced by the Chinese people. From The 8 Virtues (8 Virtue Values) embraced by Confucians in China, the values ​​of "Duty to Parents" and "Maintaining Integrity" are very close to frugal values ​​that enable Chinese people to manage their money.

The definition of “filial piety is how a person can maintain the resources owned by the family for the benefit of the future. It is unlawful for a child to spend excessively on his family's assets. If he has not been able to give something to his family, then the best way he can take is not to waste his parents' wealth.

The value of frugality is also very close to the value of "Maintaining Integrity" (Honour) in the Confucian belief. Something that is not a personal right should not be taken at all. Even if something is a personal right, one needs to use it sparingly and carefully. So as not to have a bad impact on others around him.

In China, the country where the Confucian faith thrives — frugality and thrift is even reflected in the country's spending. Chinese people recorded only using 34% of their total GDP during 2009-2013.

2. As much as possible, the money saved will always be set aside

The value of frugality is also reflected in the saving habits of the Chinese. Unlike other countries in the world, China, the country where most ethnic Chinese come from — has an average saving rate of 51% compared to the total income of the country.

This figure is very much higher, when compared to Indonesia, which has a saving rate of only 31% compared to GNP and America, which has a saving rate of 17% compared to GNP.

“I saw my Chinese brothers save 50-60% of their total income. And I also feel there is no problem setting aside that much money to save.”

Xin Lu, WiseBread Page Contributor

Not only clever in managing money, the Chinese culture that upholds austerity also makes them smart in choosing banks. The bank chosen must not only offer convenience, but must also bring benefits. Competitive interest rates, low administration fees, and various types of services are taken into consideration.

Are you still confused about how to manage your strategy so you can set aside money for savings every month?

3. Paying in cash will always be an option, otherwise the use of a credit card must go through many considerations

Debt is not a natural thing for people who come from ethnic Chinese. This reluctance to borrow cannot simply be separated from the practice of setting very "loose" debt interest rates by the Chinese government. This does not mean that in China the interest rate on debt is low, in fact the government can arbitrarily increase or decrease loan interest rates according to the economic situation.

This condition makes those who come from ethnic Chinese backgrounds insecure about their loan conditions. Maybe when economic conditions worsen, loan interest rates also increase. Therefore, as much as possible they will try to always pay in cash at every opportunity.

Even if you have to pay using a credit card, the losses and benefits will always be weighed carefully. Do not let the "debt" created by the use of credit cards fails to bring profits.

Usually, it is planned expenses such as monthly shopping and paying various installments that have a clear amount that can be paid with a credit card. This they do in order to avoid bill swelling that causes arrears in payments.

4. In Every Celebration, Money Is The Best Gift You Can Give

Ethnic Chinese have a unique custom of giving money as gifts during important celebrations. Marriage of relatives, give an angpau containing money. Even on their birthdays, many ethnic Chinese receive gifts in the form of cash, not gifts.

The clever thing about this kind of gift giving habit is that the recipient can use it as needed. Unused money can also be saved or used to buy profitable investment instruments. Of course the story would be much different if it wasn't for the money given as a gift.

5. Money Management Is Reliable, Hard Work Is Also Not To Be Forgotten

Failure is an integral part of a process to success. To face failure bravely, it takes a high level of optimism and hard work. This is what ethnic Chinese always have. And regardless of your ethnic background, you can do it too.

They never complain about difficult government policies. When other people think it's impossible, these people will persistently say: "I can do it!". Do not believe? Jack Ma, Li Ka Shing, Wu-Shi Hong — all achieved their success on paths that people consider unreasonable. But their faith and determination make the impossible possible.

From the method that has been described, it is actually not difficult to adapt Chinese-style money management habits, right? Consistency, determination and hard work are the keys.

As long as you want, you can do it too.

Image source from Unplash.com