FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONS) HUMAN RESOURCE

MANAGEMENT (NBH4A)

FIN533
PERSONAL FINANCIAL PLANNING

INDIVIDUAL ASSIGNMENTS

Family’s Financial Planning

LECTURER NAME
MRS. SHAHIRA BINTI ARIFFIN

Prepared by:

NAME MATRIC NUMBER

NURUL NAJJAH IZZAH BINTI ZAINUDIN 2021657534

 TABLE OF CONTENTS

NO. DESCRIPTION PAGE

1.0 Family Background

1

2.0 Financial Planning and Analysis: 2-6

Personal Financial Statement

Balance Sheet

Cash Flow Statement

Financial Ratios Analysis

Income Tax Calculation

3.0 Recommendations and Suggestions 7

1.0 Family Background:
Mr. Zainudin Bin Hussain's consists of 6 members, namely himself, his wife, and has four
children. He is now self-employed as an Islamic primary school manager in the education
sector. While his wife is a full-time housewife and has no income. Next, his eldest son, 30-
year-old Muhammad Abdul Hadi, already works in the financial department at the same
company as Mr. Zainudin. Mr. Hadi is married persons.

Then, his second daughter, Nurul Najjwa, who is 23 years old. Working as a kindergarten
teacher in a private company. Next, Nurul Najjah is the third child who works as a clerk in an
Islamic primary school and is a bachelor's degree student in Business Administration at
UiTM Shah Alam as an epjj student. Finally, his youngest son, Muhammad Khairul Haziq, 17
years old, is still in school at SMK Sultan Abdul Aziz Shah, Kajang.

Mr. Zainudin's salary is worth RM9,000 a month. Combining these numbers will bring the
couple's total monthly income to RM13,000 per month, which can be considered as T20.
While the salary of their eldest son, Muhammad Abdul Hadi is RM4,000 and the second son
RM1,300. For the third child, the salary is RM2,100. Despite living in Kajang, this couple
has 2 suitable houses in Kajang and Kedah. The house in kedah does not have a bank loan. In
addition, they have 4 cars namely Honda HRV, Produa Kelisa and Produa Myvi. This couple
buys kelisa produa and produa myvi in cash and does not have any bank loans. While their
eldest son has a Honda Civic car. The Myvi car is used by Mr. Zainudin as transportation to
return to work and the Honda HRV is used by Ms. Aziyan as a travel car and transportation to
her workplace. While the second and third children use Produa Kelisa for daily
transportation.

Today, I will discuss my family's financial situation by calculating current income and
expenses. By doing this, we can see if my family has a bad or good financial situation. Then,
we can take some ways or steps to avoid the occurrence of family financial problems.

2.0 FINANCIAL PLANNING AND ANALYSIS:

Personal Financial Statement:

Description RM
Assets
Cash in hand 500
Saving account RHB 5,000
Saving account CIMB 5,000
ASB Balance 50,000
Saving account Tabung Haji 45,000
Double storey terrace house (market value) 540,000
Honda HRV (market value) 62,000
Honda civic (market value) 96,000
Produa Myvi (market value) 25,800
Produa Kelisa (Market value) 14,600
Smartphone Samsung (current value) 1000
Smartphone iPhone (current value) 2000
Laptop acer (current value) 1400
washer machine 1500
Samsung TV 1200
Liabilities
House loan balance 35000
Car loan 62,000
Income Tax 4,200
Income
Salary per month 9,000
Bonus 5,000
Expenses
Honda HR-V monthly instalment 1,200
Honda Civic monthly instalment 1,000
Double storey terrace house monthly instalment 880
Clothing expenses per year 1,000
Fuel, parking, and toll per month 380
Utilities per month 500
Hari Raya expenses 1,000
EPF Contribution (9%) 990
Electric, Water and Unifi 756
School fees for the 3rd and 4th child per year 1,600
 ASB monthly instalment 912
Purchase washer machine on May 2022 2,000
Purchase Samsung TV on May 2022 1,800
Smartphone iPhone 2,000
Annual car insurance 2400
Income tax monthly payment 350
Zakat paid for year 975

BALANCE SHEET:

Balance sheet for Mr. Zainudin’s family as at 31st December 2022:

LIQUIDITY ASSETS RM CURRENT LIABILITY RM

Cash in hand 500 Income Tax 4200
Saving account RHB 5,000 Honda HR-V monthly instalment 14,400
(1200 x 12)
Saving account CIMB 5,000 Honda Civic monthly instalment 12,000
(1000 x 12)
Saving account Tabung 45,000
Haji
Total liquid Assets: 55,500 Total Current Liability: 30,600

LIFESTYLES ASSETS NON-CURRENT LIABILITIES

Double storey terrace house 540,000 House loan balance 30,000
Honda HRV 62,000 Car loan 62,000
Honda civic 96,000 Total Non-Current Liabilities: 97,000
Produa Myvi 25,800
Produa Kelisa 14,600 TOTAL LIABILITIES 127,600
Smartphone Samsung 1,000 NET WORKING CAPITAL 723,400
(Total Assets -Total Liabilities)
Smartphone iPhone 2,000
Laptop acer 1,400
washer machine 1,500
Samsung TV 1,200
Total Lifestyle Assets: 745,500

INVESTMENT ASSETS
ASB Balance 50,000
Total Investment Assets 50,000

TOTAL ASSETS 851,000 TOTAL LIABILITIES & NET 851,000

WORTH CAPITAL
CASH FLOW STATEMENT:

Cash flow statement for Mr. Zainudin’s family as at 31st December 2022:

RM RM
INCOME
Salary (9000x12) 108,000
Bonus 5,000

Total income: 113,000

EXPENSES
Double storey terrace house monthly instalment (880 x 12) 10,560

Clothing expenses per year 1,000

Fuel, parking, and toll expenses per month (380 x 12) 4,560

Utilities per month (500 x 12) 6,000

Hari Raya expenses 1,000

EPF Contribution (990 x 12) 11,880

Electric, Water and Unifi (756 x 12) 9,072

School fees for the 3rd and 4th child per year 1600

ASB monthly (912 x 12) 10,944

Purchase washer machine on May 2022 2,000

Purchase Samsung TV on May 2022 1,800

Smartphone iPhone 2,000

Annual car insurance 2400

Income tax monthly payment (350 x 12) 4,200

Zakat paid for year 975

TOTAL EXPENSES 69,991

Contribution To Dissaving: 43,009

 FINANCIAL RATIO ANALYSIS

NO. RATIO CALCULATION COMMENTS

1 Current Ratio = Liquid Assets The current ratios show higher

Current Liabilities value than 1. This shows that
Encik Zainudin can maintain
=55,500 adequate liquidity so that he will
30,600 be able to make short-term
=1.81 times payments.
2 Liquid Asset to = Liquid Assets it shows Encik Zainudin ratio in a
Take-home-pay Take-home-pay x 12 good performance and have
Ratio liquidity enough. That means, he
=55,500 is have a safe side.
113,000 x12
= 5.89 month
3 Debt Ratio = Total Liabilities Encik Zainudin debt ratio in a
Total Assets X 100 good performance and still in a
safe side. This is because is lower
= 127,600 than 40% as worker in a
851,000 X 100 government sector. It indicates, he
= 14.99% may not face. any difficulties in
getting new loan.
4 Debt Service = Take-home-pay It shows Encik Zainudin debt.
Coverage Ratio Debt Service service coverage ratio in a good
Charges performance. This is because the
ratio is more than 1. It means,
=113,000 Encik Zainudin earns RM 2.62 for
43,009 every RM1 required debt
=RM 2.62 repayment. And he still has
abilities to make payments.
Personal Income Tax:

RM
INCOME:
Salary 108,000
Bonus 5,000
Total Aggregate Income 113,000

Less: tax reliefs

Individual 9,000
Children’s:
3rd Child 8,000
4th Child 2,000
EPF 7,000
Lifestyle (Smartphone iPhone) 2,500
Lifestyle (Unifi bill internet) 2,500
Total Tax Relief 31,000

Chargeable Income 82,000

(Income relief)
The 1st RM70,000 4,400
The remaining RM7,000 '=21% x7000 = 1470
Total gross tax payable 5870

Less: tax rebate

zakat 975

Net Tax Payable 4895

(Gross tax-rebate-mtd)
3.0 Recommendations and Suggestions

Personal financial planning is significant because it is the effectively method for planning
and managing personal financial activities such as income received, spending, saving,
investing includes protecting an individual each of his family. Mr Zainudin can also assess the
most prevalent and crucial components to have an enriching life experience. So, based on Mr
Zainudin’s financial planning, there are some suggestions and recommendation for him to
make some improvement towards his family financial planning.

First, Mr. Zainudin recommends making a special budget for his family. Based on his
financial records, he faces less risk because his total expenses do not exceed his annual
income. However, he needs to be more careful and always remind himself to reduce
unnecessary expenses. Also, creating a budget is a great way to understand your financial
constraints. Therefore, he also needs to ensure that his entire family follows the budget that
has been made continuously to get a better surplus than the deficit every year.

Second, Mr. Zainudin needs to focus on saving and it can be done by making a budget
with the children and teaching them about the importance of saving. Even if the children are
grown up, it is not a wrong way to persuade them about the good side of saving to get better
results for their own family. As a result, children will be careful in spending the money given
by their parents. However, it does not mean that Mr. Zainudin and his family cannot spend on
any entertainment etc. but they must use the money according to their reasonable financial
ability.

Finally, he supposedly needs to cut down on household expenses. From the outflow
statement shows that household expenses have the most amount spent in a year. It is quite
worrying because this expense alone is close to Mr. Zainudin's total income every year. So, he
needs to ensure that these expenses are reduced by using methods such as making a list of
essential needs needed for the whole family and prioritizing the need to continue daily life so
that each can enjoy even at a moderate rate.