{"id":8136,"date":"2023-10-20T11:38:57","date_gmt":"2023-10-20T03:38:57","guid":{"rendered":"http:\/\/www.imoney.my\/articles\/?p=8136"},"modified":"2023-10-23T14:58:28","modified_gmt":"2023-10-23T06:58:28","slug":"own-financial-planner","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/own-financial-planner","title":{"rendered":"Be Your Own Financial Planner"},"content":{"rendered":"
Shopping sprees, frequent vacations, and fine dining; we have all been there.<\/p>\n
Only to be brought down to reality with a hard bump when we take a closer look at our bank account. That’s when we realise that we\u2019ve spent more than we\u2019ve made.<\/p>\n
Luckily, it\u2019s not too late to take control of your finances. Even if you can’t afford a financial planner, there are simple steps you can take to gain back the upper hand over your finances.<\/p>\n
So, put on your thinking cap, dust off your calculator, and start taking control of your own finances with these five steps:<\/p>\n
The first step to planning for the future is to understand your net cash flow (net monthly income minus average monthly expenditure) now. You can try using the iMoney’ s FREE budget planner and expense tracker<\/a> to help kickstart your future money management strategy.<\/p>\n Knowing your net cash flow can help you decide what you want to do with excess cash (if you have a positive net cash flow) or if you need to find other sources of income or cut costs (if you find your net cash flow falls into the negative).<\/p>\n Next, ask yourself what your risk appetite is, which will have a direct impact on the amount of protection you\u2019ll want to take up and the type of investments you make. A higher risk tolerance means you are comfortable living without certain form of insurance or comfortable making riskier but potentially higher return of investments.<\/p>\n The next step is to set your goals. These goals can range from achieving financial independence to establishing an emergency fund<\/a> or paying off a mortgage.<\/p>\n However, to be effective, the goal(s) that you\u2019ve set yourself for yourself must be specific and measurable, but most of all, realistic.<\/p>\n An example of a good financial goal:<\/p>\n To increase your savings by RM100,000 by the year 2033 \u2013 this goal is specific (i.e it clearly states the amount to be saved up). It is also measureable (i.e. it has a time limit of 10 years), and realistic (it is possible to save RM833 per month)<\/p>\n The next important thing to do after setting a financial goal?<\/p>\n Good intentions and knowing what you want for yourself in the future alone is not enough to get you there. There must be a game plan in place to achieve those goals you\u2019ve set for yourself.<\/p>\n Using the example above, in order to increase your savings by RM100,000 by the year 2033, you may be required to look for other sources of income to supplement your monthly salary.<\/p>\n<\/a><\/p>\n
<\/span>Step 2: Have an idea of where you want to be<\/b><\/span><\/h2>\n
<\/span>Step 3: Devise a plan to achieve your goal<\/b><\/span><\/h2>\n