Financial Planing - basic formula

My vision and dream is to achieve financial freedom and helping others to achieve it. In other to achieve financial freedom, we need to have financial intelligent or financial literacy.

Many people when they get their monthly salary, they dont know how to plan it or distribute it. In order to achieve financial freedom, everyone know that we need to buy more assets or invest. But how do we start?

So in this post, I will give a formula to everyone on how to plan your monthly salary/income. This formula can be apply to everyone especially my dear friends who going to graduate and start their career journey.

REMEMBER : TIME is one of the most important factor in investing... so it is always the best to start as early as you can.

So this is the formula, in every 100% of your salary

• 60% ( not more than 60% ) - monthly expenses
• 10% - parents/family
• 10% - Insurance (life/medical)
• 20% - Investment/Assets

This is a formula not design by me, but by professional financial planner. Here is a example and explanation, let say your salary after deducting taxes and EPF is rm2000 :

1. So, let say your monthly salary is rm2000, always limit and plan your expenses not more than rm1200 ( foods, petrol, car loan, entertainment etc. )
2. For our beloved parents and family members, 10% is good. which will be rm200 per month
3. To protect our wealth from financial risk, we surely need at least a medical card or a life insurance policy which have maturity period. (Life insurance you can buy premium as low as rm150 per month)
4. Ok, this is the most important part. INVESTMENT, rm400 from rm2000 will be to much? not at all if you want to achieve financial freedom. Try to diversify your investment, example of investment/assets ( investment-link insurance, unit trust, mutual fund, bonds, shares, property etc. )

So this is the basic formula to follow, it seem simple. But to apply it require great discipline and determination...

PLAN IT, OR LOSE IT !!!