Financial Planning is part and parcel of our life, yet most people tend to ignore the importance of it.

A recent survey report revealed that most Malaysians are ill-prepared for retirement. Despite the saddening fact, majority has certain expectations in the crucial stage of life, e.g. staying healthy and active. Around half the population intended to travel and one-third of them want to spend more time with their family.

All this is not a far cry from us as long as we follow the steps needed in basic financial planning.

1) Wealth Accumulation

Save as early as possible. Even ten cents a day is a good starter. Most people tend to spent all their money, often unnecessarily. If one does not have the will power to save, he/she can always op. for force savings such as insurance. Not only does one receive coverage, but with a little extra money at the end of the day. (Depending which kind of insurance)

2) Wealth Protection

We tend to be contented with the savings we had, often neglecting the “inflation word”. Most Malaysians are conservative when it comes to investment tools, thus heavily rely on Fixed Deposits to accumulate wealth. Some money in FD would come in handy in terms of liquidity, however if we were to treat it as an investment tool, we only would be backfired by the results as inflation is eating into our savings. A more proper resort would be investing in EPF or Unit Trust.

At the end of the day, when we retire, at least we could be financially independent. Baby boomers nowadays are different from last time where the only source of income is from their children.


Finally, think of how proud you would to be able to manage your own finance, just like a professional.