RANCANG KEWANGAN: Financial Planning

Showing posts with label Financial Planning. Show all posts

Tips On Budgetting; Know Your Basic

Posted on 9:54 AM No Comments
Labels: Budgetting, Financial Planning

Nowadays prices of commodities is increasing day by day and with the crisis of cooking oil ‘shortage’ in market recently is a clue for its’ price hike. Not to mention about our hot topic at ‘kedai kopi’ – the petroleum price hike. Everybody know the situation is, so the question is how long can government hold the existing price? Most likely it would not be imposed before the election. With the price hike it may affect the way we use our income so in our part it is proper to make our very own strategic plan on maximizing financial resources and to make sure every cents earned is well spent.

The following tips are basically on how we can help ourselves manage our finances and assume a new outlook to become responsible in our spending habit.

First, coordinate our finances and list of expenditures that may affect the way we use our income to empower us on economic stability as a working individual. Our source of income, lifestyle, spending habits, current job, cost of living, payables and loans determines our level of budgeting needs. Starting to take note of our finances is one sure way of becoming successful in a field of self-fulfillment and success.

Second, do not spend more than we earn. It’s a very basic financial planning tool. There is always truth to this phrase for us cannot live in a world where we consume more than what we can produce. Live wisely!

Third, know our wants and needs. Please limit our spending on something which we are not in dire need of. No need to buy a new car because the old one still can run smoothly and more important is the hire purchase and hanky panky from finance company is over.

Fourth, always keeping a list. Making your own budget list is vital to your success to becoming prudent. A wise buyer needs to consider the amount of a certain commodity and how will it impact his life as an individual.

Fifth, always treat math as our partner. Try to compare prices across our current location for the price of a range of grocery and household items we need in a day-to-day basis. Do the entire math in our purchasing needs.

Sixth, save as much as we can in an item we are trying to buy. Look at Chinese businessmen; they exercise an effective buying technique. They save as much as they can and usually purchase in bulk to increase their revenue on the item they plan on selling as well.

A bad consumer would not care about what is being purchased as long as he or she has money to buy for them. Unless you are someone who has a considerable amount of wealth and income resources, you can not afford to disregard this recommendation and go ahead with your practice.

So guys, make your move now.

Rules In Investing

Posted on 9:16 AM No Comments
Labels: Financial Planning, Investment

What Does Investing Mean To You?

What comes in to your mind when you mention the word investing? Does it mean, putting your money in insurance, mutual funds, the stock market or even high-yield investments?

Other people might only think about investing when they are about to die and they haven’t left anything for their offspring. Some even shiver when they hear the word, often claiming that they have no money to invest or feel that is too complicated a subject to even discuss about.

Many people even invest heavily in health supplements, personal trainers and beauticians to make themselves live longer, healthier or even look younger! Imagine the advertising budget for beauty companies nowadays.

All these are legitimate concerns when it comes to investing, but I am talking about the most important investment a person can make in his lifetime.

Invest in YOURSELF

The most important and No.1 rule is “Invest in Yourself” – if you don’t, who else will?

Your parents will only invest in your education only until you leave college. But that is just the basic necessities provided and does not teach you important lessons about financial education.

Would you depend on colleges or universities to teach you how to make money? Most colleges only teach you skills so you can earn money working for other people. How about business school? Honestly, if business lecturers are such experts at business, why are they still lecturing there instead of making a fortune in business ventures?

Would your boss teach you how to succeed in business so that one day, you will be in his position?

YOU and ONLY YOU have to be proactive enough to take that responsibility

You see, when you invest in yourself, it means taking on the importance of educating yourself. Education not in the academic or technical sense, though they are necessary skills to be developed in life. Our education doesn’t stop at college.

For most working adults, their education enters retardation stage after they leave college. They stop learning and therefore they stop growing. They only grow sideways from eating too much pizzas or take-out during their busy lunch breaks.

We know that IQ is important right? But why aren’t the most intelligent people in the world the richest people in the world? There are many accountants and financial planners rushing to their cars every evening trying to beat the after work traffic congestions! They are not rich!

How about EQ or Emotional quotient? Do working hard, having a great attitude and a positive mindset solve our financial situation? These are important when running a business, but let me illustrate:

If you are driving from KL to JB using the wrong road map, you won’t get to your destination no matter how fast you drive your car (working hard)! You can work harder, but you would only get to the wrong destination faster! You may have the best attitude in the world or the most positive mindset, but you still won’t get to JB(although the journey wouldn’t bother you since you are feeling positive about it)

Choose Your Wealth Building Models

Posted on 8:54 AM No Comments
Labels: Financial Planning, Money Management, Motivation

Everyone wants to make more money, but people are generally split into two categories:

Those who bring results after they are promised wealth first
Or
Those who bring the results first, then are rewarded by others afterwards

Let’s explore the two groups in depth.

Those who only move their butts after promised big fat paychecks are more like employees, freshmen, or mercenaries.

There is no right or no wrong with this kind of thinking, but consider: you are once again, trading your precious time for money. Instead of investing your time in an ASSET that generates money, you spend your time working on something that is short term, limited wealth, and does not give you income long after you have stopped working.

Consider also, that this kind of short term vision will only produce limited or temporary results at best. Ever seen a security guard asleep at work when the boss is not around?

Furthermore, the part where our emotions get the better of us is when we allow our lives to be run by chasing the dollar. It is evident whenever an employee is offered a higher salary, more medical benefits and longer vacations, that their heart starts pumping faster.

A higher salary doesn’t mean less financial problems. On the contrary when your income goes up, your commitments and your time spent in your company increases. The greater your salary, the weaker your position because if your boss is paying you a 5 figure income and calls for an emergency meeting, you had better rush over to the office even if you are halfway to your holiday vacation!

I think the best definition of an employee/boss relationship can be summed up as this.

An employee will only do the bare minimum to keep the boss from firing them and a boss will only pay the bare minimum to keep an employee from leaving.

Now let’s explore the other group.

There are many creative people, inventors, entrepreneurs, and business leaders who fall into this category.

An entrepreneur is someone who always has good ideas.

The first obstacle we need to overcome if we want to succeed in the second group is to stop working for money. What does this mean? Isn’t making money part and parcel of having good financial IQ?

What I mean by ‘stop working for money’ is not working for free. Rather, it means work so as to gain the necessary skills you need to be a successful entrepreneur (or inventor, investor). Allow me to illustrate:

If you lack the contacts for running a business, where would the best place be to look for contacts? Of course, your competitor’s customers.

How about product knowledge? Then work with a company that will teach you all the ins and outs of the tricks of the trade.

Not familiar with the production line of a factory? Work in one! Learn the ropes or manage the factory workers.

Fear of talking to people? Get a sales job where you will be forced to talk to lots of people. It is also a great way to develop perseverance!

Don’t you know that the best education you can get is in real life! Not at a lecture hall.

The bottom-line is: not everybody has what it takes to succeed as an entrepreneur!

It is not that easy. Many lack the perseverance, the creative mindset, the financial capabilities or the necessary people to get the job done and usually give up too early before any results can be seen! The fastest way to get those skills to succeed is to learn them hands on and you even get paid in the process! Don’t get absorbed with how much you are paid.

When Donald Trump was selecting candidates in The Apprentice, their first task was to go to the streets and sell lemonade! Many would find it a degrading task. But to The Donald, it was very important: If you can’t even do something as simple as sell lemonade, how on earth can you handle a daunting task like running the Trump Empire?

Again, let me emphasize:

Would you trade time for short term money? (Money stops coming in when you stop)
OR
Trade time and money for a long term asset that generates you income? (Even long after you have stopped)

God created us with a brain. All we need to do is look around us and observe problems to overcome because every problem is an opportunity in disguise.

It is all up to you. You may or may not see the results in the short term, but by using our brains and the resources around us, we can create true value that others are willing to pay for what we have to offer.

Insanity

Posted on 1:31 PM No Comments
Labels: Financial Planning, Motivation

Fitrah Manusia & Lumrah Kehidupan

Naturally, most if not all of us want and crave for something better. It is all part of us if we want a bigger car, a better house, buying good things for the family. We keep hoping for more but, in order to get what you don’t have, you have got to do something you have never done before.

That simply means:

Doing the SAME thing over and over again YET expecting DIFFERENT results!

As an employee, you can’t stay at the same job forever and hope that a miracle will happen and your boss will suddenly give you a raise. You will be lucky that there is no downsizing in your company. Switching to another company will only provide a short term solution to a long term problem.

Sure, you can take up a second or even third job, but do you have enough hours and stamina in a day to sustain it?

The bottom-line: Trading time for money isn’t wise financial sense in the long term. You keep on increasing the hours just to win the rat race, but in the end of the day, you are still a rat on the mill!

Increasing your wages only puts you in a higher buying power. Your salaries increase but so does your expenses on your house and car. How will you invest in yourself when all the time you spend working for a company to please your boss who want to please your big boss, working for the government to please your minister whom hoping to be a senior minister and working for the bank paying off your house and car?

What if you fall sick and can’t work tomorrow? Will your company take care of you? Will the government take care of your family? I highly doubt so.

So isn’t it time you take care of your finances more seriously?

Why Financial Planning

Posted on 1:10 PM No Comments
Labels: Budgetting, Financial Planning, Money Management

Nowadays financial pressures are a leading cause in all forms of mental and physical sickness from depression and stress to substance abuse and suicide. There are hundreds of reasons why we are stuck in financial problem. It’s a result from our bad attitude about money, wrong money management or living in debt to pursue a lifestyle of materialism as the rich just to name a few. The only simple and logical answer for this is you don’t have a proper financial planning. Trust me.

Our attitude about money and the way we handle it serves as an excellent indicator of our level of commitment in financial planning. Money can buy things and experiences that bring temporary pleasure, but it can never buy the peace and contentment that are the by-products of freedom.

Anyone can have financial order in their lives by simply deciding to live a disciplined life in accordance with a wise budget plan. By following a logical step-by-step plan, minimizing debt, and being cautious of emotional and impulsive spending, anyone can get control of his finances.

Every family needs a written plan (budget) for how they are going to spend their money, especially those who think they don't. It is impossible for you to efficiently manage your finances without a written plan.

We must responsible to provide safety for our family. Planning is a critical part of that process. Although the leader is responsible, it is vitally important that the decisions required to be made in the development of the budget plan be made by those who are going to have a part in making the plan work. We can relate building a tower to living one month; one year; etc.

Without a written plan, the outcome of our months, years, or our entire life is at best, a guess. A Plans must be flexible but visible. That is the rule.

A written financial plan for the family (budget), allows you to be able to carefully consider and track the “goings” of your money. Without a written plan you become a “responder”; one who reacts rather than controls (Those who fail to plan are planning to fail).

Again remember this, to make sure the plan working; those who involved in its design should have an active part in its executing.

An Interview Wth A Financial Planner.

Posted on 11:52 AM No Comments
Labels: Financial Planner, Financial Planning

An interesting article to read esp. for job seekers and student....(has been edited for Happy Reading)

Q : When and How It Started?

A : I was just 11 years old when I learnt about the importance of managing my personal finances. When I was in school, I always had a budget for my expenses. I understood that I should not spend beyond my means. I was happy whenever I saw my money accumulating at the end of each month.

My father, who was a dentist, was not very savvy about managing his money. As a result, my family encountered financial difficulties after my father died when I was five. What happened to me as a young kid helped shape my character and gave me the discipline that later led to becoming a financial planner.

Q : My Qualification?

A : I graduated with a Master of Philosophy (Finance and Management Studies from Cambridge University as a scholar of Cambridge Commonwealth Trust and has worked with several local banks and multinational companies.

Hence, when I decided to work as a part-time unit trust agent, people around me were quick to pour cold water on the idea. They asked me why I wanted to become an agent even though I have a master's degree. Then I’ve set up my own financial planning company in 2000 and has about 200 consultants.

Q : My job involves?

A : Providing my clients with advice on investment planning, cash flow planning, debt management, risk management, estate management and retirement planning. I look at trends, research reports and talk to asset managers.

Firstly, I will ask my clients to state their investment philosophy, which is an important step in investment planning. They need to tell me how much money they are willing to put in and what are the things that they are not comfortable with to set their parameters.

I look at my clients’ needs and wants. I don’t push products. As there are many scams around, I caution my clients on how to detect them. If something sounds too good to be true, it is not true!!!

They will also be asked to review their philosophy annually and their investment portfolio every three to six months. As investment involves hopes and fears, it can be very emotional. Some clients start talking about their personal problems. For example, they may be facing life-changing events such as getting a divorce or leaving a job.

Q : My morning starts off with?

A : Alerting my clients and keeping them informed on their investments. I also send my clients emails to keep them updated.

Q : To qualify, you need?

A : To be a certified financial planner and take the Certified Financial Planner (CFP)programme that comprises six modules. After completing the first module, you may practice as an associate financial planner or work for a financial planning company to get some experience.

Q : The best person for the job is?

A : You must comfortable with figures and has the passion for educating people to do the right thing. A financial planner must also have good EQ (Emotional Quotient). I know some of the new ones who have just joined the profession feel guilty when a client loses money. Also, the person needs to have good discipline and time-management skills.

Q : Prospects for the future?

A : Future Prospects is good as the market has just started growing in Asia and Malaysia as people’s needs become more complicated.

Q : I love my job because?

A : I can educate and make people more aware of their rights. I am happy to hear people say, “I’ve learnt something from you.”

Q : What I dislike most?

A : We’re not God. We can’t predict the future and prevent events like September 11 from happening. Sometimes there are clients who blame you for giving bad advice. I believe clients should also play an active role and be responsible for their investment wealth.

Q : A millionaire by 30?

A : I’m not sure if you should use the word “millionaire” but the starting pay for a new full-time financial planner ranges from RM2,000 to RM5,000 per month depending on how hardworking he is.

Personal Financial Planning Guidance

Posted on 9:56 AM No Comments
Labels: Financial Planning

Mengapa Urus Kewangan?

Do you know where're all your money gone every month? Do you always waiting for your payday? One of my friend has forwarded an article to me a few years ago. This interesting article had opened my eyes about the important of financial planning at the age of 30 eventhough I’m a finance graduate from a reputable university in USA.

Why I was soooo blind? And I believe most of us still…….. well keep reading. (This article has been ammend for happy reading).

ASK YOURSELF:

Adakah gaji anda sekeluarga cukup sehingga gaji seterusnya?
Adakah anda boleh menyimpan 20% dari gaji anda sekeluarga setiap bulan?
Adakah anda ingin bersara sebagai seorang jutawan?
Adakah anda ingin menumpang belas kasihan anak-anak selepas bersara nanti?

Jika anda pernah terfikir tentang soalan-soalan ini, anda adalah seseorang yang prihatin yakni prihatin untuk masa hadapan anda sekeluarga. Ini adalah antara beberapa soalan utama yang PERLU difikirkan oleh kita semua. Nada soalan ini seperti iklan skim cepat kaya sahaja atau pembuka bicara oleh agen insurans tetapi inilah realiti kehidupan.

A PROPER FINANCIAL PLANNING

Mengurus wang anda membolehkan matlamat kewangan anda tercapai seperti membeli rumah, menyimpan wang untuk membiayai pelajaran anak-anak atau merancang untuk persaraan. Apa yang perlu hanyalah membuat sedikit perancangan dan mengurus hal kewangan anda dengan betul.

Berikut adalah panduan tentang prinsip-prinsip asas belanjawan yang membolehkan anda mengorak langkah ke arah kebebasan kewangan melalui tip-tip perancangan kewangan.

STEP BY STEP TO A PROPER FINANCIAL PLANNING

Perancangan kewangan adalah penting, walau banyak mana sekalipun pendapatan kita. Rahsianya ialah mengetahui di mana anda SEKARANG, hendak ke manakah anda pada masa HADAPAN dan bagaimana untuk sampai ke SANA, SANA, SANA!!!!

Anda boleh menambah nilai wang anda jika anda dapat mempelajari bagaimana untuk menguruskannya secara berhati-hati seperti:

Mengetahui apa hendak dibuat dengan wang anda
Mengetahui ke mana perginya wang anda
Mengenal pasti tabiat anda berbelanja
Membentuk satu rancangan perbelanjaan yang cermat
Berbelanja secara berhemat dan mengikut kemampuan anda
Menyimpan wang sedikit demi sedikit untuk masa depan anda

Pandangan semua ahli keluarga khususnya pasangan anda dan anak-anak, hendaklah diambil kira semasa membuat keputusan berhubung dengan perancangan kewangan anda. Ini akan menjadikan anda lebih akur dengan rancangan perbelanjaan anda dan juga membantu anak-anak membentuk kemahiran dalam hal perancangan kewangan pada peringkat umur yang masih muda lagi.

Berikut adalah langkah-langkah yang boleh diambil dalam merancang kewangan anda:

Step 1 - Define Your Financial Goal

Menentukan matlamat kewangan dapat membantu anda untuk mempelajari nilai wang. Matlamat kewangan mencerminkan apa yang anda hendak lakukan dengan wang anda dalam satu jangka masa tertentu. Penentuan matlamat akan mendorong anda berbelanja dan menyimpan wang mengikut kaedah yang akan membolehkan matlamat anda tercapai.

Setiap keluarga menentukan matlamat dan merancang hal kewangan mereka berasaskan kepada penilaian masing-masing. Walau apa pun jua penilaian anda sekeluarga, rancangan kewangan anda adalah merupakan suatu ekspresi tentang apa yang paling penting bagi anda sekeluarga. Umumnya matlamat-matlamat ini meliputi:

Membeli rumah
Membeli kereta
Berkahwin
Pelajaran anak-anak
Percutian
Persaraan
Perbelanjaan perubatan

Penentuan beberapa siri matlamat peribadi akan membantu anda untuk mengurus wang anda dengan berhemat. Matlamat anda boleh berubah dari semasa ke semasa, namun ia mampu memberi dorongan dan insentif kepada anda agar terus membuat perancangan kewangan. Anda harus merancang untuk:

Matlamat Jangka Pendek– Yakni perkara yang boleh dilakukan dalam tempoh yang terdekat. Mungkin dalam tempoh seminggu atau beberapa bulan, tetapi tidak melebihi setahun seperti membeli pakaian baru atau menyimpan wang untuk percutian.
Matlamat Jangka Sederhana – Yakni perkara yang boleh dibuat dalam tempoh satu hingga lima tahun seperti membeli sebuah kereta atau sebuah komputer.
Matlamat Jangka Panjang – yakni perkara yang diharapkan boleh dicapai tetapi mengambil masa yang lebih lama lagi misalnya dalam tempoh lima hingga sepuluh tahun, seperti membeli rumah, menyimpan wang untuk pendidikan anak-anak di peringkat yang lebih tinggi dsb.

Peruntukan wang simpanan ke arah matlamat-matlamat ini bergantung kepada beberapa faktor yang seterusnya akan menentukan pilihan pelaburan anda. Oleh itu, adalah penting matlamat-matlamat ini disenaraikan mengikut keutamaan. Amaun yang diketepikan untuk memenuhi matlamat ini berbeza daripada satu individu kepada individu yang lain dan faktor-faktor yang diambil kira adalah termasuk faktor usia, tahap pendapatan, perbelanjaan, jumlah tanggungan, status pekerjaan dan taraf perkahwinan.

Step 2 - Know Where Your Money Gone

Setelah menentukan matlamat anda, anda mungkin berasa mustahil untuk mencapainya, lebih-lebih lagi jika anda mendapati tiada lagi yang tinggal apabila tiba cukup bulan. Sekiranya anda membuat perancangan untuk berbelanja dengan lebih baik, matlamat anda akan menjadi mudah tercapai berbanding apa yang anda jangkakan.

Walau bagaimanapun, sebelum anda membentuk rancangan perbelanjaan, anda perlu menjejaki dahulu ke manakah perginya wang anda. Ini boleh dilakukan dengan merekodkan setiap perbelanjaan yang dibuat bagi sesuatu tempoh contohnya lapan minggu. Ini bukan bertujuan menyekat perbelanjaan anda tetapi mengenal pasti hala tuju perbelanjaan anda. Dengan ini, anda akan mengetahui:

Ke mana dan bagaimana anda membelanjakan wang anda
Berapa banyakkah anda berhutang setiap bulan
Berapa banyakkah yang masih tinggal pada akhir bulan

Step 3 - Determine Your Way of Expense

Jika anda mendapati bahawa anda tidak mempunyai apa-apa baki pada akhir bulan, barangkali anda perlu menilai cara anda berbelanja. Anda perlu meneliti senarai perbelanjaan anda untuk memastikan sama ada kesemuanya adalah benar-benar perlu atau merupakan perbelanjaan yang anda boleh kurangkan.

Berikut adalah tip-tip bagaimana anda boleh menjadikan perbelanjaan anda lebih menjimatkan:

Semak senarai barangan isi rumah yang anda beli untuk meneliti sama ada jenamanya boleh ditukar ke jenama yang lebih murah (seperti kertas tisu tandas, serbuk pencuci, cairan pembersih dan sebagainya)
Semak senarai keperluan barang-barang dapur anda untuk mengenal pasti barangan yang "elok ada" tetapi sebenarnya “tidak diperlukan”. Anda juga sepatutnya mengenal pasti isyarat amaran mengenai tabiat anda berbelanja yang tidak sihat yang boleh membawa kepada masalah kewangan:
Menggunakan wang simpanan untuk membayar bil semasa
Melengahkan pembayaran bil-bil yang selalunya dibayar sebelum tarikh tamat
Membuat pinjaman baru untuk melunaskan pinjaman lama
Menangguhkan pembayaran balik pinjaman anda
Memilih untuk membayar secara ansuran apabila membeli barangan harian untuk isi rumah
Pembayaran melebihi pendapatan pada akhir bulan
Membeli mengikut gerak hati walaupun anda tahu bahawa anda tidak mampu membelinya

Step 4 - Write Your Expenses Plan

Bagi membantu menyemai sifat-sifat berdisiplin di dalam cara anda berbelanja, anda perlu merangka rancangan perbelanjaan anda dan akur kepadanya. Dengan mencatatkan aliran wang masuk dan wang keluar, anda dapat menghalakan tumpuan ke bahagian di mana perbelanjaan sudah menjadi tidak terkawal dan juga bagi memberi ruang kepada anda untuk menyimpan pula. Sekiranya pendapatan anda melebihi perbelanjaan, anda akan dapat mengetepikan wang untuk rancangan simpanan demi mencapai matlamat kewangan anda.

Di bawah ini adalah panduan bagaimana untuk merangka satu rancangan perbelanjaan bertulis:

Tentukan berapakah pendapatan bulanan anda
Campurkan semua jumlah perbelanjaan termasuk bil bulanan tetap, bayaran balik pinjaman, sewaan, perbelanjaan keperluan harian dan sebagainya
Ketepikan sejumlah wang yang tetap yang mencukupi untuk membiayai keperluan di waktu kecemasan atau belanja bermusim (seperti yuran sekolah, cukai jalan, pembaharuan insurans dan sebagainya)

Sekiranya terdapat lebihan setelah menolak perbelanjaan anda maka semakin hampirlah anda ke matlamat anda. Sekiranya anda tidak mempunyai lebihan wang tunai untuk disimpan, anda mungkin perlu menyemak semula pola perbelanjaan anda dan mengurangkan mana-mana perbelanjaan yang tidak perlu. Jangan menyifatkan rancangan perbelanjaan anda sebagai batasan yang mengikis keseronokan dalam hidup anda.

Belanjawan yang mencapai matlamatnya sebenarnya dapat membebaskan dan membantu anda mencapai peningkatan matlamat kebebasan kewangan buat masa sekarang dan pada masa akan datang.

HAPPY READING.... BE A MILLIONAIRE IN 10 YEARS... SET YOUR TARGET GUYS........