Financial Planning Concept

I learned my first planning lesson in Form 3 of home science classes. Mrs.Karim was our cookery class teacher while Mrs.Kok taught us sewing. I picked up valuable ideas and skills from them. In the home science exam, we were supposed to cook for a meal.

The meal consisted of 3 dishes and a soup for a meal. Below were the things we needed to write down.

1. Decide what to cook and which to cook first(set the goal and set priority),
2. Write down recipes and check if you have the ingredients (gather relevant data and information),
3. work out a time schedule for each step to follow. Estimate time taken for each step. (Analyze info and develop the process for implementation.)
4. Cook according to what were written down. (execute the plan)
5. Constantly check to ensure stewed meat does not dry up, etc., until completion. (Monitor and review)

In upper form, in order to carry out any experiment, the same procedure will follow. Similarly, in financial planning, the logical way to follow is
1. Determine what i want to achieve financially and prioritize them
2. Arrange, file up, and put on paper what are the resources and liabilities i have, e.g. how much money i have in the bank, invested in shares or unit trust, loans etc.
3. Analyze the assets and liabilities and the income sources
4. Detail and write down the financial problems I have and the solutions that I can have
5. Implement steps to solve my problems and to achieve my financial goals
6. Check and adjust the implementation to ensure problems are solved and goals can be achieve.

It is easy to say than to implement. Get a financial planner to advise you.