MY MONEY AND ME



Category : Article

 

“My Money and Me”-  a Financial Knowledge awareness campaign which will be rolled out nationwide in conjunction with the Global Money Week 2021 campaign (March 22-28). This awareness campaign is organised by the OECD International Network on Financial Education with the theme “Take care of yourself, Take care of your money.”

 

The theme of the campaign “Take care of yourself, Take care of your money“, clearly pointed out the fact that everyone of us need to take care of ourselves by taking care of our money. In the way, it means, when we take care of our money, the money will take care of us, when we are in need.

From the statistics of Bankruptcy in Malaysia 2019, it shows that 35% (the highest percentage) of Malaysian bankruptcy are comprises of them age between 35 to 44, follow by 25.29% (age between 45 to 54) and 25.18% (age between  25 to 34). This is an alarming statistics for us to realise that the age group is young.

Source : Malaysia Department of Insolvency 2019 – http://www.mdi.gov.my/index.php/legislation/bankruptcy/1548-bankruptcy-statistic-disember-2019

 

As we look at this alarming statistics, we cant help but start thinking why and how did Malaysians at such young age get into debts? Then we look at the reasons of bankruptcy per below chart :

From the chart, it shows that 32.07% (which is the highest statistics) of the declared bankruptcy is due to Personal Loan., follow by Hire Purchase (Car Loan) at 21.53%, Mortgage (Home Loan) at 12.57%, Business Loan at 10.15% and Credit Card debts at 10% and so on.

Then, there goes the next question, why would our millennials and young generations go for Personal Loan? Well, there are various reasons which include taking up loans to pay off study loans, to get married, to pay off credit cards etc…. and the issue of creating more debts from one loan to more loans just does not solve the problem which ultimately falls back to the root cause of lacking the knowledge in Financial Planning and Financial Management.

 

As quoted,

“You must gain control over your money or the lack of it will forever control you.” – Dave Ramsey

No point working hard and making a lot of money, but not knowing how to manage it.

Thus, having the knowledge of Financial Management and Financial Planning is important. The earlier one learns about this, the better it is as it helps every adults to start managing its first salary. It is about having good financial management discipline, practice the good habit consistently, be committed and keep monitoring regularly.

It is important for everyone to understand that the concept of Financial Planning is having a strategic way to plan, manage and monitor one’s income and expenses using a holistic way via a systematic planning manner. Financial Planning is NOT just about any insurance agent or unit trust agent coming to you with proposals for specific products and plans only.

Anyone who wishes to get a Financial Review or learn more tips on Financial Planning, click here for a Free Consultation.

 

Reading Reference : https://www.theedgemarkets.com/article/financial-knowledge-planning-vital-preventing-bankruptcy-scams-%E2%80%94-tengku-zafrul

  “My Money and Me”-  a Financial Knowledge awareness campaign which will be Read more

Do i Need Financial Planning?



Category : Financial Planning
 

Financial Planning ? Do i really need it?

Now, a quick example : What do you do when you want to go somewhere this year end holiday ? Most probably, you will ask yourself and discuss with your loved ones :
  • Is it going to be a local or overseas destination ?
  • What are the options of accommodations – Home Stay or Hotel ?
  • What is the budget available / how much total cost?
  • How long will be the holiday?
Now, by discussing the above, the planning starts and these questions help evaluate options, budget and the overall holiday itinerary. These questions leads to decision making. So, similar senario goes to Financial Planning, only if we know what we want to achieve, then we will be able to start thinking, discussing, planning and eventually work towards achieving our financial goals. In personal financial planning, areas to consider involve questions like “what is your dream and goals?”, “what do you want to achieve in 5 / 10 / 20 years time?” “At what age would you want to retire?” and so on. To achieve your life dreams and goals, one need to start planning from the financial perspective, which involves budgeting, managing cash flow, saving, protecting and distributing one’s assets over time.   Without setting clear Financial Goals, one may not have clear directions to work towards. How much to save up, how much savings to achieve before retirement, is there emergency funds available etc.

There are many benefits of Financial Planning

  Many may have have the impression that with Financial Planning, they cant enjoy life because they have to save up and not able to spend on what they like to do. This perception is incorrect, because with Financial Planning, you will get to understand, plan and spend according to your capability, needs and eventually have a balance of saving, spending and protections covered. Here are some of the key benefits to Financial Planning :
  1. You will have better control over your financial affairs. With the better understanding and control, you will avoid unnecessary spending, manage debts, avoid bankruptcy and avoid depending on others when come to financial matters.
  2. The most important area is the relationships with your loved ones, family and friends. With financial well managed, you will get less stress, better managed emotions and thus build a better relationships with people around you, instead of having to borrow money from them.
  3. You will have a more meaningful life. Meaningful life in the way where you will get to create your life goals, plan strategically how to achieving these goals and have better control at the later part of your life journey.
So, hope you have a better idea about Financial Planning after reading this. Contact www.eraadvisory.com.my for more details.   Financial Planning ? Do i really need it? Now, a quick example : What do you do when you Read more