4. Key Needs of Financial Planning
Priority
Cashflow
Objective
- To have a yearly cash surplus
Principle
- Maintain a yearly minimum cash saving of 3 to 6 months from cash outflow as an emergency fund.
- Maintain a minimum of 10% of total income as savings (include EPF)
How to achieve?
- Monthly Budget
- Bank Savings/ Malaysia savings bond/Sukuk
- Assets invested must be cash equivalent, high liquidity and capital protected.
Timeframe
- Short-term goal is to achieve cash surplus within a year