Chapter 10: FINANCIAL MANAGEMENT

10.1 EFFECTIVE FINANCIAL MANAGEMENT PROCESS

Use the SMART approach to set the financial goals for the situation below
Question 1
Azwan is a Form Four student at SMK Bukit Awan. He wants to buy a tablet priced at RM1000 for
his studies. He receives RM8 a day for his pocket money. Use the SMART approach to set a financial
goal for him.
S – Plan to save money to buy a buy a tablet priced for his studies
M – Plan to save RM1000 to buy a tablet
A – He will have RM1000 by saving RM20 every week
R – He can save RM4 every day from his pocket money
T – By saving RM20 every week, he will have RM1000 in 12.5 months (52 weeks)

Question 2
Sherlyn is a second-year student at Bunga Raya University. She is taking a three-year culinary
programme at the university. In 4 years, Sherlyn hopes to run her own café with a capital amount of
RM20 000. Apply the SMART technique to set a financial goal for Sherlyn.
S – Plan to save money to run her own café
M – Plan to save RM20 000 to run her own café
A – She will have RM20 000 by saving RM420 every month
R – she can do a part-time job so that she can save RM420 each month
T – By saving RM420 per month, she will have RM20 000 in about 4 years.
RM420 X 12 X 4 = RM 20160

Question 3
Chong Nam is a programmer with a monthly income of RM5000. He plans to take a professional
course in Artificial Intelligence in the next 6 months to upgrade his job skills. The course cost
RM3000. Set a SMART goal for Chong Nam to achieve the aim
S – Plan to save money to take a professional course in Artificial Intelligence
M – Plan to save RM3 000 to pay the course
A – he will have RM3 000 by saving RM500 every month from his monthly salary
R – his plan is realistic. he can get RM500 each month from his salary or do a part time programer
T – By saving RM500 per month, he will have RM3 000 in 6 months.
Question 4
Mrs Shu plans to travel to Sabah with her children in the upcoming school holidays, which is in six
months’ time. This trip costs RM3000. Mrs Shu needs to save RM500 a month from her monthly
salary of RM 4 500 to achieve her financial goal. Does Mrs Shu’s financial goal fulfil the SMART
approach?

S – Plan to save money to travel to Sabah with her children in the upcoming school holidays
M – Plan to save RM3 000 to travel to Sabah with her children
A – She will have RM3 000 by saving RM500 every month from her monthly salary
R – her plan is realistic. she can save RM500 each month from her monthly salary
T – By saving RM500 per month, she will have RM3000 in about 6 months.