Financial Planning & Its Fundamental Rules

In my previous money blog, I have identified the definition of Financial Planning. And i have promised to simplify the entire process to help you understand your current financial conditions and financial goal.


The very basic of FINANCIAL PLANNING starts from the ability of a person to SAVE part of their income monthly. If you are employed, you will definitely know how much of salary you are receiving every month. Whether or not your salary is FIXED or with COMMISSION, you definitely know your spending POWER.

We all know this basic formula, which is:

Nett Income – Expenses = Overspent / Savings

If this is how we plan our Finances, then most probably we end up OVERSPENDING on our expenses.

Allow me to share with you my story…

I have been managing my own finances/allowance, since i was at College (that was 11 years ago). I was given a monthly allowance of RM 250 (for my food, pre-paid top-up, groceries & etc). Rent has been taken care of. I have been very discipline in managing it, as I know that if i don’t do so, I won’t be able to survive, especially in a City like Kuala Lumpur. To my surprise, not only i have sufficient amount to spend, but i have additional amount to save. You must be thinking, ya right… are you kidding me RM 250 still have savings? Yes. I do. The secret to it is I have adapted a different formula.

The formula i used was:
Nett Income – Savings = Expenses

First, I allocated the amount I want to save monthly to treat it as an EXPENSE, then I list down the amount I need to spend on the things that are ESSENTIAL (E.g. Food, groceries, pre-paid top up). With this formula i was able to save RM30-50 per month. But, of course there were times, when emergency strikes, when i need to use some of my emergency funds. But most of the months, i was able to save the amount i have planned for.

Of course, some may think that this formula doesn’t work on them, due to the ever rising INFLATION. True Enough. the PRICE INCREASE on PETROL & all other essential goods are causing us to have less purchasing power. However, the truth is that NO ONE can CONTROL the INFLATION RATE. The only thing we CAN CONTROL and MAKE A DIFFERENCE is our own SPENDING.

Key to it is to have PROPER Financial Planning.

Over the past decade, we hear people complaining that they do not have sufficient funds to reach their Financial Goals or have a Comfortable Retirement. Today, the amount of people having such complains have increased triple fold.

Why has it increased? The answers are simple & straight forward:

1. Some of us are SPENDING what we DO NOT have. In short, spending FUTURE money- the money we yet to earn.
2. Some of us do not have PROPER Risk Management. Some chose to bear certain RISKS themselves.
3. Some of us allow INFLATION to outgrow their money. (No investment plans / Too Conservative in investments)
4. Some of us choose to do everything by themselves and refused to seek professional advise before taking up loans/debts & investments.
I have made everything very simple and straight forward for readers to understand. I would like to SIMPLIFY IT EVEN FURTHER.

I have designed a Financial Survey exclusively for those who take THEIR OWN FINANCIAL PLANNING seriously. The outcome of the survey will allow you to UNDERSTAND your Financial Position and it will take you ONE STEP CLOSER to your FINANCIAL GOAL.

Upon completion of the survey, I will be able to help you understand your current Financial condition and to design an INVESTMENT PORTFOLIO that can help you to reach your FINANCIAL DREAM in YOUR OWN COMFORTABLE PACE.

All information provided in the survey will be kept strictly confidential.

Leave a Reply

Your email address will not be published. Required fields are marked *