PERSONAL FINANCIAL PLANNING

FIN533
MY PERSONAL FINANCIAL STATEMENT

INDIVIDUAL ASSINGMENT

PREPARED BY:
NAME: NORJIHAN BINTI MOHD ALI
ID NO: 2021437102

PREPARED FOR : MADAM SHAHIRA BINTI ARIFFIN

SUBMISSION DUE DATE: 5 JUN 2023

BACHELOR OF BUSINESS ADMINISTRATION (HONS.) HUMAN

RESOURCE MANAGEMENT
(BA243)
a) Bio data of your and your family stating:

NORJIHAN’S FAMILY BACKGROUND

My name is Norjihan binti Mohd Ali. Im working as a Office Secretary at Berjaya Times

Square Management Corporation at Kuala Lumpur. Currently staying at Platinum Oug

Residence, Kuala Lumpur. I’ve been married about 5 years. My husband name is Muhammad

Fadhil bin Abdul Wahab. He is a Assistant Fire Supritendent in Shah Alam Fire Department. We

are blessed with one child, named Nayra Imani. She is 4 years old now. The house that we live

now, is a house I bought 4 years ago. Moreover, I used a proton iriz and my husband honda jazz

for go to work.
HOUSEHOLD (including spouse)
b) Show your monthly income and expenses for a 12-month period (January 2022-December
2022).
 c) Balance Sheet as at 31 December 2022.

Norjihan's Family
Balance sheet as at 31st December 2022
RM RM
Current Asset Current Liabilities
Cash in hand 1,000 Maybank Credit Card 6,000.00
Cash in Bank (Norjihan) 14,000.00 Public Bank Credit Card 3,000.00
Cash in Bank (Husband) 7,000.00 Total Current Liabilities 9,000.00
Saving at Tabung Haji 40,000.00
Total Current Asset 62,000.00

Non Current Assets Non-current Liabilities

Houses and land loan 300,000.00 Balance of House Loan 180,000.00
Balance of vehicle car loan 23,400.00
Lifestyle Asset Total Non-Current Liabilities 203,400.00

Market Value of electronic gadget 15,000.00 TOTAL LIABILITIES 212,400.00

Household furnishings 60,000.00
Value of current cars (50 000 + 30
000) 80,000.00
Market Value of clothes, shoes 10,000.00 Net Worth 336,600.00
Total Lifestyle Asset 165,000.00 (Total Assets - Total Liabilities)

Investment Asset
AIA Medical Card 22,000.00
Total Investment Asset 22,000.00
TOTAL LIABILITIES AND
TOTAL ASSETS 549,000.00 EQUITY 549,000.00

d)Cash flow statement for the year ended 31 December 2022.

e) Ratios calculations based on the cash flow statement and the balance sheet above (4 types
of ratio).

1) Current Ratio
Current Asset / Current Liabilitity
= 62 000
9,0000
= 6.88> 1
 That is positive current ratio because it is greater than 1 and my family is able to meet the
short term obligation.
 With the big ratio and big amount of current assets that my family have we can convert
the assets into cash within a year with the liabilities it must pay off within a year.
 High liquidity position and stable financial

2) Debt Service Coverage Ratio

(Income – Income Tax) / Personal Loan Monthly Instalment)
(Income – Income Tax/ (House and land loan + Vehicle Car Loan Payment)

(RM 117,840 – RM 6,097.60)

RM 1,850
=RM 60.40
 The debt service coverage ratio is high. This show that my family available to pay current
debt obligation.

3) Debt ratio : Total Liability

Total Asset
= 212,400
549,000
= 0.3868× 100
= 38.68 %
• The debt ratio shows that my family ability to pay off its obligation with it assets.
• The figure shows that my family have more than assets than debt.
• This ratio measures the financial leverage of my family.
• This shows that my family has low debt and low financial risk

4) Liquid Assets to Take Home Pay Ratio

(Cash in hand + My Saving Account + Husband Saving Account)
/ ( Income – Income Tax) X 100
= RM 1,000 + RM 14,000 + RM 7,000_ X 100
(RM 117,840 – RM 6,097.60)
= RM22,000 X 100
111,742.40
= 19.68 %
My family financial’s condition is bad because it is not between 25% - 50%. We must
achieve liquid assets between 25 % to 50 % in order to be a good condition of financial to
our family.
f) Income Tax calculation based on 2022 income and expenses (based on 2022 tax schedule).
 g) Comments and advice on your financial situation based on your analysis (b to f). You may also
include any incidents or events that may affects your financial situation for the year 2022. Also
provide your recommendations to further improve your financial situation in the future.

SYSTEM USED BY MY B FAMILY

All the personal financial have been managed by me and husband. I did not have a specific

system used in divide our income and expenses. We only divided our financial managing

between us. From my research, most of expenses like bills, utilities, gadgets, car fuel and

services were been managed by my husband, while groceries, pocket money and dining expenses

were been managed by my me. We always cover for each other we y did not have enough money

to pay some of the outstanding expenses. We did not have a personal loan because we did not

like to have a lot of loan. In the Age like me and husband, i think we had achieve a stable and

good planning with our financial because i have an asset like house and land that can be a good

assets for us.

ANALYZE MY FAMILY FINANCIAL’S POSITION
My financial position was good and still stable in manage overall the expenses. That is show

from the cash flow as at 31 Disember 22 that have surplus RM 15,513.60, if expenses is higher

than the income then it will be negative and need to bear all the liabilities. Even though the total

assets is higher than the total liabilities, when I doing the calculation for the financial ratio, the

current ratio total is higher than 1, with the big ratio and big amount of current assets that my

family can convert the assets into cash within a year with the liabilities it must pay off within a

year it means that it is still able to meet the short term obligation and has a high liquidity

position. For liquid asset to home pay ratio ratio (THP), my family condition is bad because the

ratio lower than 25% or not within 3 to 6 months to THP. But for the debt ratio shows that my

family ability to pay off its obligation with it assets. Overall, my family expenses is still under

control and have a stable financial.

COMMENT AND RECOMMENDATIONS

Sofar my family financial are still manageable . Even thought, I think we should look
back at our expenses, but still have a higher salaries about RM10,000 for our family. My family
should reduce our desire for lifestyle like gadgets and more to educations and bills. We also must
differentiate the wants and needs which is needs would be defined as goods or services that are
required. This would include the needs for food expenses, clothing, education, health care and
house bills. Wants are goods or services that are not really necessary but that we desire or wish
for. We should start doing some investment or saving so that we can used it when we retired. I
know that EPF can cover for our retired but that’s not enough. Some saving that we have can put
to buy shares that practice low risk and low return. Today, globalized world require us to dare to
study and try something new.
 WHAT I HAVE LEARNT FROM THIS PROJECT PAPER
What I learn from this project is we must prepared well our financial income statement

because the first step like the car that we want to buy must be suitable and affordable to us to pay

the monthly payment. Because if the first step we fail, we will damage overall our financial

statement. I also have learn that every single transaction that we make every month must be

recorded to control our budget .With this research, my family can know to manage their financial

more good.

APPENDIX