FACULTY OF BUSINESS MANAGEMENT

UNIVERSITY TEKNOLOGI MARA

KAMPUS PUNCAK ALAM

FIN533
FAMILY'S FINANCIAL
PLANNING

PREPARED FOR:

MADAM RAFIATUL
ADLIN HJ MOHD
PREPARED BY: RUSLAN

NUR ANIS AMIERAH

BINTI ZAWAWI

(2022920105)
 Table of
Contents

01 02 03

FAMILY FINANCIAL MONTHLY INCOME

BACKGROUND INFORMATION AND EXPENSES

04 05 06

BALANCE SHEET CASH FLOW RATIOS

AT 31 DECEMBER ENDED 31
2022 DECEMBER 2022

07 08 09

INCOME TAX COMMENT AND RECOMMENDATIONS

ADVICE
 ACKNOWLEDGEMENT
Before begin, I want to express my gratitude to the One who made all things possible.
Anyone who has struggled with completing a financial planning understands that it is
impossible to accomplish without reference from family. First and foremost, I are grateful to
Universiti Teknologi Mara (UiTM) for providing me with the chance to study at UITM. It was
a fantastic learning experience and source of information for me to have studied at UITM.

To begin, I would like to express my heartfelt appreciation and gratitude to Miss Adlin, our
lecturer of Personal Financial Planning (FIN533), for sharing her wealth of knowledge,
useful guidance, and experience with us. Without her assistance, I may not be able to face
and address the problems that encounter along the process till complete report.

Aside from that, I want to express my heartfelt gratitude and special thanks to everyone who
has directly or indirectly assisted me in producing this project report. I would like to offer my
heartfelt gratitude to my loving parents, family for their unwavering support. Also, I want to
express my heartfelt gratitude to the students at UiTM Puncak Alam for their care for us to
accomplish my task. Finally, I would like to express my heartfelt thanks to the UiTM Puncak
Alam librarian for the invaluable resources and knowledge that have greatly aided me in
successfully completing this research.

I'm aware that without everyone's cooperation and tolerance, I will be unable to complete
duty correctly. My gratitude and appreciation also go to all my cherished family members,
who provided with moral support while we completed the assignment. I would not have
gotten this far without them. To conclude, I would like to offer my apologies for any errors or
omissions in carrying out this duty, and hope that the experience and knowledge obtained
while working on this report will be useful in the future.

01
 FAMILY
BACKGROUND

Zawawi Bin Buyong is 50 years old and currently works in a private

sector which is Ethno Resources, Sungai Buloh Selangor. He is
working as a clerk at this company. He is a single father for 3 children.
The first child is Anis Amierah, 21 years old and persuade degree in
International business at Uitm Puncak Alam. The second child is Alissa
Atirah, 18 years old and currently taking a diploma in Graphic design
at KPTM Batu Pahat, both had gotten PTPTN for their studies. While
the third child is Ain Damia, 13 years old and studies at SMK
Sierramas. Mr Zawawi and family live in a condominium and also have
two cars which are Avanza and myvi. Mr Zawawi earns RM5500
monthly and he also pays epf every month.
Mr Zawawi's family has one condominium, one car which is myvi, where
Mr Zawawi use to go to work. He also invested in Tabung Haji amounted
to RM 20 000

02
Mr Zawawi's Family Financial Information

03
MONTHLY INCOME &
EXPENSES

04
 BALANCE SHEET
AS AT 31 DECEMBER 2022

PURCHASED PRICE: RM 300 000

DOWN PAYMENT: RM 150 000
BALANCE LOAN FROM BANK:RM 300 000 - RM 150 000
= RM 150 000
INTEREST RATE: 3.5%
INTEREST CHARGED: 3.5% x RM 150 000
= RM 5250
TOTAL LOAN: RM 150 000 + ( RM5250 x 35 )
= RM 333 750
MONTHLY INSTALLMENT CONDOMINIUM: RM 333 750/420
= RM 795
LONG TERM LIABILITIES: RM 333 750 - ( 795 x 36 )
= RM 305 130

PURCHASED PRICE: RM 60 000

DOWN PAYMENT: RM 20 000
BALANCE LOAN FROM BANK:RM 60 000 - RM 20 000
= RM 40 000
INTEREST RATE: 3.5%
INTEREST CHARGED: 3.5% x RM 40 000
= RM 1400
TOTAL LOAN: RM 40 000 + ( RM1400 x 35 )
= RM 52 600
MONTHLY INSTALLMENT CONDOMINIUM: RM 52 600/108
= RM 487
LONG TERM LIABILITIES: RM 52 600 - ( 487 x 24 )
= RM 40 912

05
 CASH FLOW
ENDED AT 31 DECEMBER 2022

06
 RATIOS
LIQUID ASSET TO TAKE Based on liquid assets to
HOME PAY take home pay, the ratio
is 38% and has liquid
23000/(66000-6000) enough since the ratio is
within 3 to 6 months of
=0.38 x 100 =0.38 x 12 take home pay. He is on
the safe side
= 38% = 4.56 months

CURRENT
RATIO Based on current ratio,
Mr Zawawi has 2.3
23000/10000 which is more than 1.
This can be prove that

= 2.3 Mr Zawawi has a

maintain liquidity.

DEBT
RATIO Based on debt ratio, Mr
Zawawi got a high percentage
356042/440000 which is 81%.
=0.81 x 100 This can be prove that Mr
Zawawi face difficulties in

= 81% getting new loans since his

ability to pay debts has
decreased
DEBT SERVICES
COVERAGE RATIO
Based on debt service coverage
(66000-6000)/(9540+5844) ratio, Mr Zawawi earns
RM3.90 in take home pay for
= 3.9 each RM 1 of required debt
payment and interest. It
means that Mr Zawawi has
the ability to make payments

07
 INCOME TAX
YEAR ASSESSMENT 2022
 COMMENT AND
ADVICES

The balance sheet statement for Mr. Zawawi indicates that the situation is
quite good because he made contributions to savings where the total
assets are enough to cover the liabilities, with a total of RM 440 000 in
assets and RM 356 042 in liabilities. As a result, he has no trouble paying
their current debts according to the ratios' percentages. If Mr. Zawawi
makes further investments in the future to boost his income, he will be able
to pay off their long-term debt with ease. Additionally, his net worth of RM
83 958 indicates actual measurements of his wealth and is a great place to
start when developing a financial strategy. In addition, Mr. Zawawi's current
obligations include an RM10 000 credit card debt.

Although credit cards are generally acknowledged to be huge debt hooks, it

is unrealistic to avoid having one in the current climate because it must be
utilised for more than just making purchases. Simply put, Mr. Zawawi
needs to manage his money wisely going forward in order to increase his
contributions to savings and investing.

The cash flow statement shows that Mr. Zawawi have a contribution to
savings of RM 9706 because their total income exceeds their total
expenses. Every year, Mr. Zawawi gets paid a salary. The expenses are
very high, yet there is currently positive cash flow as well. In addition, it was
a good decision for Mr. Zawawi because he took life insurance. This is
because the main purpose of life insurance is to provide income
replacement to our heirs when we die. I advise Mr. Zawawi to also provide
education insurance for his children so that it will be easier for the future.
 RECOMMENDATIONS
Based on Mr. Zawawi's balance sheet, I suggest that Mr. Zawawi add
investment assets other than savings at Tabung Haji for his use in the future
such as ASB (Amanah Saham Berhad). The fund's goal is to give Malaysian
Bumiputeras a different way to save money. It seeks to produce competitive,
long-term returns for investors. As a result, ASB was created as a fixed-price
equity income fund, meaning that there are no sales taxes or redemption
fees and that the price per unit of the fund is set at RM1. Investors can only
increase their investment till the ASB input limit, which is set at RM200,000.
The account's worth is not restricted by the fund, though. Therefore, retained
capital gains in the ASB account are permitted to increase the account's
balance above RM200,000. Investment amounts are freely chosen by
investors. Apart from that, I also suggest that Mr Zawawi also needs to
reduce expenses by using a credit card. This is to give Mr Zawawi the
pleasure of being free from outstanding debts.

In addition, I also suggest that Mr. Zawawi reduce expenses on family

vacations in the expenses cash flow section. This is because the expenditure
we can see is RM 5000. The amount listed is very large. The selection of a
vacation location can be managed according to each person's budget

Lastly, I also suggest that Mr. Zawawi use more cash in hand to avoid tax
and make it easier for Mr. Zawawi not to be extravagant and rely on credit
cards. This is to reduce Mr Zawawi from using credit cards. Cash in hand
meaning is payment in cash rather than by check or another method for
goods and services, usually to avoid paying tax on the amount earned.