1. MONEY MANAGEMENT AND FINANCIAL PLANNING
ASSOC. PROF. DR. NIK MAHERAN NIK MUHAMMAD (CFP, CITM, IBBM)
Faculty Business Management
UiTM Kelantan

2. WHAT IS MONEY TO YOU? Social status? Opportunity? Security?
Accomplishment?
Stress?
Peace of mind?

3. MONEY MANAGEMENT What are your goal in life?
How you should pursue them?
What type of account should you used?
What are the type implication?
What should you be doing now in order to continue supporting love ones after you are gone?

4. MONEY MANAGEMENT
Strategic vision of your household financial situation
Goal
Time frame
Budgeting
Keeping track of your spending
Build financial discipline

5. Money Management
Spending
Saving
Investing
Retirement
Extra income
Necessary
Lifestyle
Contingency
Protection
TAX
ZAKAT

6. FINANCIAL PLANNING
financial planning is the process of meeting your life goals through the proper management of your finances.
Life goals can include buying a home, saving for your child's education or planning for retirement.

8. Financial Planning Process
Identifying and setting short, intermediate and long-term goals. Ideally, each goal will have a date and dollar amount attached to it. 
Evaluating your current situation – cash flow analysis and calculating your net worth. You need to honestly assess your current financial status, including positives and negatives. 

9. Financial Planning Process…cont
Review your insurance coverage, including life, disability, home, auto, umbrella liability and long-term care. 
4. If you have children, develop a college funding plan to help cover higher education expenses.

10. Financial Planning Process…cont
4. Review your current tax situation to identify tax-saving opportunities and potential deductions durable power of attorney are up-to-date and valid. 
5. Develop a retirement funding plan that covers when you plan to retire and how much you will need to support your retirement lifestyle.

11. Financial Planning Process…cont
6. Develop an overall investment plan with proper investment portfolio that supports your goals, while staying within your investment time horizon and risk tolerance.

12. CASHFLOW PLANNING Spending pattern Budgeting Asset accumulation
Borrowings/liabilities
Net worth

13. BUDGETING WORKSHEET Household spending Take home pay_____
Mortgage/rent
Insurance
Transportation
Groceries
Food at work
Work supplies
Education
Phone/utilies
Debt repayment
Medical
Clothing
Hobies/leisure
Books
Others
Take home pay_____
Spending total______
Do you have EXTRA or DISAVING??

14. WHERE TO KEEP YOUR EXTRA MONEY??
Emergency saving account
Do your best to forget the account exist !!
Interest earnings or investment earning??

15. NET WORTH ASSETS Liquid Asset Lifestyle Asset Investment Asset
LIABILITIES
Current Liability
Non-current Liability
IS YOUR ASSETS MORE THAN LIABILITIES?????

16. BORROWINGS Good borrowings
Borrowing to achieve some goals can actually be smart investment in a household long term future

17. Bad/dangerous borrowings
You’re using cash advance from one credit card to make a minimum monthly payment on another credit card
You can’t afford to make all of your minimum payments every month
You’re forced to skip payments on routine household expenses in order to make you debt payment
Your application for new credit are rejected
Creditors are calling you to arrange payment of outstanding bills.

18. INVESTMENT PLANNING For education/career advancement For retirement
For protection
For contingency
For leisure spending/extra income

19. INVESTING INSIGHT Intension of seeing it ‘grow’ overtime Property Gold
Unit trust
Insurance
Investment link
Money market
Bond
Stock

20. FINANCIAL PLANNING AND LIFE CYCLE STRATEGIES
The amount of money to be invested in various assets depends on:
Your goals and needs – to buy a house, travel or retirement needs, education, children etc.
Your age at the time of investment – this will decide how much risk you can take. For instance, if you are young, you can invest in relatively riskier investments
Your income at the time of investment – if you earn more, you will have more money to invest. The level of wealth will also influence the types investments you can hold

21. FINANCIAL PLANNING AND LIFE CYCLE STRATEGIES…cont
Your occupation – if your job provides retirement plans, you may not want to have a separate retirement plan
Time horizon – when do you want to sell your assets?
Liquidity – how fast can you convert your assets into cash?
Tolerance for risk – how much risk are you willing to take?

22. RISK MANAGEMENT AND INSURANCE PLANNING
Premature death – life insurance
Health and disability
Children education
Property insurance
Retirement

23. TAX PLANNING Minimizing your tax payment prudently
Join/separate assessment
Relief
Rebate
Zakat/fitrah

24. RETIREMENT PLANNING
How much income should you plan on needing when you retire? A financial planning rule of thumb is to figure on needing 70% to 80% of your pre-retirement income. That income is the income you'll be earning at the time you retire, not the amount you're earning now. 

25. ESTATE PLANNING Will Hibah
Wakaf/contribution to charitable organization
Trust and custodial account
Naming and updating beneficiaries

27. CONCLUSION We need a LIFE BALANCE Monetary return Mentally return
Spiritual return

28. THANK YOU
Open for discussion

29. ABOUT THE SPEAKER
Assoc. Prof. Dr. Nik Maheran is a Certified Financial
Planner and Chartered Institute of Taxation Malaysia
Associate member. She is currently a lecturer at UiTM
Kelantan teaching financial planning, Investment analysis
and various finance subject. Prior to joining UiTM, she was
a remisier at KLSE and later joined Inland Revenue Board
of Malaysia in 1995 as tax assessment officer.
She has conducted more than 50 training and consultancies
in the area of financial planning, investment planning,
Leadership, decision making and Image building for many
private and public organizations.