FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (Hons.)

HUMAN RESOURCE MANAGEMENT

PERSONAL FINANCIAL PLANNING

FIN533

FINANCIAL FAMILY PLANNING

PREPARED FOR:
PROF. MADYA SITI HAJAR BINTI MOHD ALI

PREPARED BY:
SUHANA BINTI SAFIEE (2020368797)
RBMMFHA

SUBMISSION DATE:
17 JULY 2021

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TABLE OF CONTENT

Title Pages

ACKNOLEDGEMENT 3

BACKGROUND OF MY FAMILY 4

FINANCIAL INFORMATION 5

MONTHLY EXPENSES 6

BALANCE SHEET, CASH FLOW & CASH BUDGET STATEMENT 7-9

RATIOS 10

INCOME TAX 11

CONCLUSION 12

REFERENCES 13

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ACKNOWLEDGEMENT

First and foremast, praise and thanks to Allah for his showers of blessing throughout my
assignment project to complete the task successfully. A lot of effort have been done and many
people involve in contributing information that I need. I would like to express my deep and sincere
gratitude to all of the who help me through this process until I am able to complete this assignment.

I would like to express special gratitude to PM Siti Hajar binti Ali, my lecturer of Personal
Financial Planning (FIN533), for guiding and encourage me on completing the assignment, without
her guidance , I might no be able to do this assignment. Next I would like to thank Encik Muhammad
Luthfi and family for their good corporation with me and giving me the most valuable information in
this assignment to me.

And last but not the least, my thanks and appreciations also go to the people who are
directly or indirectly helped me out in developing this assignment.

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BACKGROUD OF MY FAMILY

Currently, Encik Luthfi Bin Haji Iswaji is working as a technician in Tenaga Nasional Berhad(TNB),
Seremban Branch. He is 36 years old and married with Puan Akmar Aina Binti Md Kamar Who are 1
years young than him which is 35 years old. Her wife is full time house wife. Encik Luthfi earns
RM5400.00 monthly also pay EPF and income tax every month from their gross salary.

Encik Luthfi and Puan Akmar have been married for almost 8 years and blessed with two childrens,
two sons. His first son name Muhammad Amirul Luthfan is 6 years old and currently study at Smart
Reader Kids Seremban Jaya and his second son name Muhammad Aariz Luthfan is 3 months.

Encik Luthfi owns a single-storey terrace at Taman Seremban Jaya and lives with his wife and
children. Encik Luthfi brought the house in 2010 from their parent with cash and start lives there
with his family in 2013 has stay almost 8 years. Besides, he also owns two cars which are Honda
Oddesey and Honda Civic. He also have one motorcycle Yamaha 125zr, he use motorcycle for daily
uses such as going for work, her wife use Honda Oddesey for daily uses.

In the nutshell, Encik Luthfi and Puan Akmar is my in law family and I’m glad to be their Financial
Planning

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 1. FINANCIAL INFROMATION

Financial Information of Luthfi’s Family for year ending 31st December

2021

ITEM RM
Salary Luthfi after deducted 11% EPF 57,672.00
Bonus Luthfi after deducted 11% EPF 14,418.00
Cash in Hand 2,000.00
Saving Account CIMB 15,000.00
Saving Account Bank Simpanan Nasional 10,000.00
Saving Account ASB 50,000.00
Market Value of single-storey terrace 160,000.00
Market Value of Honda Oddesey 110,100.00
Market Value of Motorcycle (Y15ZR) 4,500.00
Market Value of Honda Civic 15,000.00
Household Furnishing 5,000.00
Life Insurance premium per year 3,000.00
Utilities Cost per year 2,760.00
Touch n Go 150.00
Phone Bill per year 2,640.00
Road tax and Auto Insurance 4,350.00
Fuel and car maintenance 5,400.00
Entertaiment/Clothing 6,000.00
Parents allowance 6,000.00
Children's School Fees & Books 5,000.00
Wife Allowance 6,000.00
Zakat per year 500.00
Groceries per year 7,200.00
Coway Fees per year 2,100.00
Income Tax per year 2,275.50

Minimum
Debt Current Balance Credit Limit Interest Monthly
Rate Payment
(RM)
BSN Credit Card 3,000.00 8,000.00 13.5% 200.00
CIMB Hire Purchase Loan 82,400.00 3.5% 1200.00

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 2. MONTHLY EXPENSES

Luthfi's Family Monthly Expenses January - December 2021

Details Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Groceries 600 600 600 600 600 600 600 600 600 600 600 600
Coway Instalment 175 175 175 175 175 175 175 175 175 175 175 175
Phone Bill 220 220 220 220 220 220 220 220 220 220 220 220
Utilities Bill 230 230 230 230 230 230 230 230 230 230 230 230
CIMB Card Credit 200 200 200 200 200 200 200 200 200 200 200 200
Fuel & Car Maintance 450 450 450 450 450 450 450 450 450 450 450 450
Parent Allowance 500 500 500 500 500 500 500 500 500 500 500 500
Wife Allowance 500 500 500 500 500 500 500 500 500 500 500 500
Child School Fees 350 350 350 350 350 350 350 350 350 350 350 350
Auto Insurance and Road tax - - - - - - - 4350 - - - -
Zakat - - - - - - - - - - - 150
Monthly insurance premium 250 250 250 250 250 250 250 250 250 250 250 250
Dine in/Out 500 500 500 500 500 500 500 500 500 500 500 500
Income Tax 169.5 169.5 169.5 169.5 169.5 169.5 169.5 169.5 169.5 169.5 169.5 169.5
Credit Card Instalment 200 200 200 200 200 200 200 200 200 200 200 200
Hire Purchase Instalment 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200
Total 5544.5 5544.5 5544.5 5544.5 5544.5 5544.5 5544.5 9894.5 5544.5 5544.5 5544.5 5694.5

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 3. INCOME STATEMENT
Luthfi’s Family
Income Statement for year ended 31 December 2021

INCOME /CASH FLOW RM RM

EARNED INCOME
SALARIES 57,672.00
BONUS 14,418.00
ASB (4.25%) 2125.00

TOTAL CASH FLOW 74,215.00

LESS: EXPENSES(CASH OUTFLOW)

FIXED EXPENSES
HIRE PURCHASES LOAN 14,400.00
INSURANCE PREMIUM 3,000.00
INCOME TAX PAYMENT 2,275.00
CHILDREN SCHOOL FEES & BOOKS 5,000.00
24,675.00

VARIABLE EXPENSES
UTILITIES BILLS 2,756.00
TOUCH &GO 150.00
PHONE BILL 2,640.00
ROADTAX & AUTO INSURANCE 4,350.00
FUEL & CAR MAINTANCE 5,400.00
ENTERTAIMENT/ CLOTHING 6,000.00
PARENT ALLOWANCE 6,000.00
WIFE ALLOWANCE 6,000.00
GROCERIES 7,200.00
COWAY FEE 2,100.00
ZAKAT 500.00
37,096.00

NET PROFIT/SAVING 12,444.00

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 4. BALANCE SHEET

Luthfi's Family
Balance Sheet as at 31 December 2021

ASSET RM LIABILITIES RM

LIQUID ASSET CURRENT LIABILITIES RM

CIMB CREDIT CARD

SAVING ACCOUNT CIMB 15,000.00 OUTSTANDING 3,000.00
SAVING ACCOUNT BSN 10,000.00
SAVING ACCOUNT ASB 50,000.00
CASH IN HAND 2,000.00

TOTAL LIQUID ASSET 77,000.00 TOTAL CURRENT LIABILITIES 3,000.00

LIFESTYLE ASSET LONG TERM LIABILITIES

MARKET VALUE TERRACE HOUSE 160,000.00 HIRE PURHASE LOAN 82,400.00

MARKET VALUE HONDA ODDESEY 110,100.00
MARKET VALUE HONDA CIVIC 15,000.00
MARKET VALUE MOTORCYCLE 4,500.00

TOTAL LIQUID ASSET 289,600.00 TOTAL LONG-TERM LIABILITIES 82,400.00

NET WORTH 281,200.00

TOTAL ASSET 366,600.00 TOTAL LIABILITIES 366,600.00

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 5. Cash Budget

Cash Budget for Luthfi's Family of Year 2021

JAN FEB MAC APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC
Cash Inflows RM RM RM RM RM RM RM RM RM RM RM RM
Luthfi Salary 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400
Bonus 14,418
ASB Dividen 2,125

Total Cash Inflows 7,525 5,400 5,400 5,400 19,818 5,400 5,400 5,400 5,400 5,400 5,400 5,400

Less: Cash Outflows

Utilities Bill 230 230 230 230 230 230 230 230 230 230 230 230
Groceries 600 600 600 600 600 600 600 600 600 600 600 600
Coway Instalment 175 175 175 175 175 175 175 175 175 175 175 175
Hire Purchase Instalment 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200
CIMB Credit Card 200 200 200 200 200 200 200 200 200 200 200 200
Phone Bill 220 220 220 220 220 220 220 220 220 220 220 220
Parent Allowance 500 500 500 500 500 500 500 500 500 500 500 500
Wife Allowance 500 500 500 500 500 500 500 500 500 500 500 500
Fuel & Car Maintance 450 450 450 450 450 450 450 450 450 450 450 450
Child School Fee 350 350 350 350 350 350 350 350 350 350 350 350
Auto Insurance & Roadtax 4,350
Zakat 500
Dine in/out Allocation 500 500 500 500 500 500 500 500 500 500 500 500
Insurance Premium 250 250 250 250 250 250 250 250 250 250 250 250
Income Tax 169.50 169.50 169.50 169.50 169.50 169.50 169.50 169.50 169.50 169.50 169.50 169.50

Total Cash Outflows 5344.5 5344.5 5344.5 5344.5 9694.5 5344.5 5844.5 5344.5 5344.5 5344.5 5344.5 5344.5

Surplus/(Shortage) 2,181 56 56 56 10,124 56 -445 56 56 56 56 56

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6. FINANCIAL RATIO

Luthfi’s Family Financial Ratio

Liquid assets to take-home pay ratio
Liquid assets / Take-home pay

= RM 77,000 / RM 64,962

= 1.18

= 11.85%

Luthfi’s family has the equivalent of 11.85% of annual take-home pay in liquid assets. In case of
emergency or if I loses a job, Luthfi can survive about more than one months. This means
luthfi’s family has not enough fund or liquid.

Liquid Ratio
Liquid assets / Current liabilities

= RM77,000 / RM 3000

= 25.67 times

Lutfi liquid assets for every RM1 is RM 25.67 or for every RM1 I borrowed, luthfi will have
ability to payback the current liability is 26.67 times. The higher the liquidity ratio is better for
luthfi because it shows that luthfi can payback borrowing.

Level of Debt
= Total liabilities /Total assets

= RM 85,400 / RM 366,600

= RM 0.23

= 23.30%

Luthfi family has RM 0.23 of debt for every RM 1.00 of the assets. This can also be read as
23.30% of Luthfi’s assets is owed to somebody else.Luthfi debt ratio is high for a person
working in a public sector, this ratio should be no more than 40%. It would be very difficult if
luthfi want to apply for new loans.

Debt Service Coverage Ratio

= Take-home pay / Debt services charges

= RM 64,962 / RM 19,800

= RM 3.28

This means that luthfi earn RM 3.28 in take-home pay for each RM 1.00 of required debt
repayment and interest. The ratio is over than 3 which means, luthfi have the ability to make
loan repayments.

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 7. INCOME TAX OF LUTHFI’S FAMILY
Combined Assessment Tax RM RM

Aggregate Income
Salary 57,672.00
Bonus 14,418.00
Dividen ASB 2,125.00

Total Aggregate 74,215.00

Less : Donation

Assessable Income
Less : Relief
Self 9,000.00
Wife 4,000.00
Parent (RM500x12Month) 3,000.00
Children
Amirul 2,000.00
Aariz 2,000.00
Kindergarden (RM350x12Month) 3,000.00
Life Premiun Insurance & EPF(RM3000+5832) 7,000.00
SOCSO (RM19.75x12Month) 237.00
Lifestyle (RM800+RM3,960) 2,500.00

Total Relief 32,737.00

Chargeable /Tax Income 41,478.00

Gross Tax Payable

On the 1st RM35,000 600.00
On the 2nd RM6478 x8% 518.24

Gross Tax Payable 1,118.24

Less: Rebates
Self 400.00
Wife 400.00
Zakat 500.00
Monthly Deduction 2,275.00 3,575.00

Net Tax Payable/Refund -2,456.76

*Base on LHDN Tax Relief for Resident Individual
Assessment 2020

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8. Conclusion

This planning is for achieving lifelong goals. Here a person will allocate some
money for current consumption and the balance will be put into savings. A
good record keeping of fund (money) is essential to determine whether there
will be a surplus or shortage of fund.

This also important because sometimes a person income may no be sufficient to

support his leaving. He has to buy food, pay for utilities, tuition fee and buy books. A
person also needs to have a house and car. The monthly income may not be
sufficient to purchase the house or car on cash basis. These things may then have
purchased on credit basis. Hence, a proper debt planning is important so that all the
debts can be paid on time with no extra charge.

Investment planning apart from saving can also invest his money in the stock market
and the unit trust such as ASB and ASN to get some returns.

Financial planning approach/ process

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REFERENCES

Hashim,M. 2015, Personal Financial Planning, Penerbit Press Universiti Teknologi MARA
Malaysia

Lembaga Hasil Dalam Negeri Website:

http://www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=1&bt_posi=3&bt_unit=1&bt_sequ
=1&bt_lg v=2

Lembaga Zakat Negeri Pulau Pinang Website:

https://www.zakatpenang.com/zpp/

Carlist - Used Car Market Price:

https://www.carlist.my/

Mudah Website - Used Motorcycle Market Price:

https://www.mudah.my/malaysia/motorcycles-for-sale?q=Yamaha%20Y15ZR

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