4. Key Needs of Financial Planning
Priority
Financial Position
Objective
- To achieve positive net worth
Objective
- To increase the assets.
Principle
- Maintain yearly total assets which
exceed total liabilities.
• Maintain a yearly maximum of 50% of total
liabilities to total assets ratio.
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