( a ) Firstly, I must get a true picture of my current financial situation so that I can make

informed decisions thereafter. I am currently a year 2 undergraduate degree student, I would

require one more year of study before graduate and starts working. Meanwhile, I have been
teaching tuition as my part-time job for 2 years ago. Besides, I am working as a part-time
agent who selling slimming products in order to increase my income. I have short term goals,
mid-term goals as well as long term goals to achieve. Short term goal is usually can be
achieved within a year or even less. However, mid- term goals are usually the stepping stones
to the long term goals. Goals that will take longer than one year to accomplish, but less than
five years, are usually considered medium-term goals. On the other hand, long-term goals are
those that you can accomplish in two years or more, as they require larger funds. My short
term goal is to earn approximately RM3, 000 and save RM1, 500 a month after deduct the
routine spending. Besides, I am planning to go for a vacation in December. As for my mid-
term goal, I want to earn RM5, 000 and save RM3, 000 monthly after I graduated. I will start
to repay my PTPTN loan by deducting my monthly salary and create an emergency fund
from my savings. Besides that, I will save money for a down-payment for an investment
property and a car. For my long-term goals, I would like to earn average RM10, 000 a month
until the age I retired which is 55 years olds. In order to achieve this goal, I would like to buy
more investment properties which the repayment is not exceed 30% of my salary. After
retirement, I would be living base on my pension fund, various of interest from fixed deposits,
rents from my investment properties, dividends from stocks which sum up to RM8,000 per
month.


( b ) Table 1 : Current monthly cash flow budget
Income
Income from private and partner tuition RM 1, 000
Income from selling slimming products RM 500
Total RM 1, 500
Expenses
Food RM 300
Transportation ( Parking, Petrol and Toll) RM 250
Entertainment / Dining RM 150
Clothing / Gifts RM 150
Miscellaneous expense RM 150
Total RM 1, 000


The table above shows the current monthly cash flow budget. As a student, my cash
inflow is basically from income made from my part time jobs which are home tuition and
some commission from slimming products selling. On the other hand, my monthly expense is
about RM1, 000. There are 3 main expenses which include food, transportation and
miscellaneous expense. Miscellaneous expense will be including some overspending which is
unpredictable such as skin care treatments, phone bills and so on. I would eventually end up
saving RM1,000 every month. As a result, I am opening a tuition class with a partner on
every Saturday and Sunday in Selayang which is starting on January 2012 to increase my
income as these expenses cannot be cut down easily because these spending mostly are my
basic necessity.
(c) As mentioned before in question 1, my short term goal is to earn RM3, 000 and able to
save RM1, 500 a month. Currently, I have not achieved my goal yet. However, Im
approaching close my financial goal. Now, Im already earning RM1, 500 a month which is
50% of my target, RM3,000. As for another goal of saving RM18, 000 for the year, my
current saving is only RM500 per month. It means I am only able to save RM6, 000 for the
year which is only 33% of the goal I had set. I must increase my current income up to
RM3,000 to meet the goal I set rather than decrease my spending every month.

(d) In relation to part (c), it is still a long distance from my current financial position to
the goal I have set initially. There are two major ways to control my current income,
expenditure and savings which are either to increase income or decrease expenses. As
mentioned earlier in part (b), it is impossible to cut down my current spending as there are my
basic necessity every month. Therefore, the only way to achieve the goal is to enchance the
cash inflow by generating more income in the coming year.
For the revenue part, I earn income from both teaching tuition and selling sets of
slimming products. Besides the existing lessons, I have already giving a month trial language
course started from December 2011 on every Saturday and Sunday in Selayang. I am
running this business with a partner and we have earned zero profit for the first month. By
doing this, we have retained a minimum 50% students in fact of their parents have already
enrolled and paid the tuition fees for January 2012. We hung up all the banners around the
tuition center and opened booth outside the Selayang wet market in every alternate morning
to approach the parents who are stay in that area. In order to catch sight from potential
customers, we giving out a free drink for parent who doing a short survey with us. In addition,
we planned to go for one-to-one approach during the time when the parents waiting for their
children to end classes every day after the school starts on 3
rd
January 2012.Assuming we can
recruit 10 new students from this approach, I can earn an extra profit of RM1,000 for my
personal income thus increase my current income to 2, 500. Apart from that, I am currently
sell slimming products within my social cycle such as the course mates in campus and friends
or relative outside the campus and earning an average RM500 part-time income a month.
However, I opening a Facebook and Blogger page through Internet to promote and sell the
slimming products as well as recruiting some agents who are also interested in this career
within Malaysia. I can earn an extra RM 500 by assuming I could sell average one more
carton of this slimming product a month. The more I sell, the higher income I get as I earn
from the spread of agent price with retail price and also the commission I purchase the stock
in bulks. Therefore, these are the ways I am working on in order to achieve my goal in the
coming year.
On the other hand, my major expenses are food, transportation and miscellaneous
expense. It is impossible for me to cut down these consumptions every month. The only way
I could do is to avoid unnecessary outing or eating expensive food unless when going out
with some potential business partner and agents. As for clothing and gifts expenses, I could
limit myself to only spend RM100 or even less which means 33% decrease in provision for
this spending. Besides, I will control myself to buy some new clothes only if I have an
accumulated clothing budget of RM300 which is accumulated from previous months. In
contrast, the leftover RM50 add up a RM500 from my income of RM3,000 will be contribute
to my parents for family living costs every month.
Generally, I will keep the receipts of my daily spending and mark down all the
financial records in software which has already installed in my mobile phone. It is easy to
make it as a habit because I can key in the transaction data, view the updated cash and bank
balance or even the current financial position by clicking on a small button on screen before
going to bed. By doing so, I could keep track of my spending and aware if I had overspend by
looking at the spreadsheet showing the budgeted and actual figure every day in order to
ensure myself living within the income frame every month.



e)
I am graduating from HELP University at the age of 22 at the beginning of the year
2013. Assuming I have achieved my short term goal before I graduate which is saved
RM13,000 at the beginning of year 2012 after going for a trip which costs RM5, 000. I
will place this RM 7,000 in fixed deposits to earn a higher interest for 6 months. It is
easier for me to place a higher down payment for a car or property in 5 years time.
Assuming that I got a banking job and earns approximately RM2,500 fixed salary every
month. However, it is still a gap between the actual and targeted income and its
impossible to save RM180,000 for my midterm goal. Therefore, I will continue running
and expanding my tuition career in weekend and slimming products in every part of
Malaysia. I am able to earn RM2, 500 more from these both part-time jobs every month.
After deducting the pension contribution such as EPF and taxes expenses, I could roughly
have a net income of RM4, 500. Firstly, I will contribute RM400 to my parents for family
expenses. Then, I would have to repay not more than RM300 to the PTPTN loan every
month for 15 years. The rest I will spend RM300 for transportation expenses, RM300 for
food expense and RM200 for miscellaneous expense. The remaining RM3, 000 is save
inside the bank for the down payment for a new car and investment property within the 5
years. I would have RM193,000 in total of savings for the short-term and mid-term goal.
The RM93,000 will spend on the down payment and installments for a car and an
investment property before the age at 27. The rest of RM100,000 will save in the
emergency fund and invest in stock market in the proportion of 7 : 3.



Assuming there is an annual increment of RM200 in salary, I would be earning
approximately RM3,000 at the age of 30. However, I do plan to stop my banking carrier at
this age. Im planning to invest my money to startup a tuition center. A licensed tuition
center that would give me an approximate return of RM5,000 a month. Moreover, I will be
expecting to earn an additional revenue of RM2,000 from selling the slimming product
which makes up a total revenue of RM6,000 after tax deduction. In addition, Im also
expected to be getting married at this age as well. Assume that all the basic living cost is
bear by my husband, I will contribute RM500 monthly towards emergency fund and also
another RM2,500 monthly into insurance, childs education and also some loan. RM2,000
would be my personal savings. The remaining money would be invested into stocks and
bonds in a proportion of 5:5. At this stage, I tend to be less aggressive in investing due to
many considerations such as family issue. Since it is my own business, I could start
spending some time in taking care of my houses and also my own child.

After the age of 50, I tend to hire more teachers in my tuition center. Instead of
teaching my self, I could enjoy a steady flow of income while taking a rest. I will be
retiring around this age, my daily expenses would be covered from my passive income
such as rental revenue, interest and also dividends from my financial assets. Besides that,
my cash inflow will also backed by EPF as well. Nevertheless, Im also be increasing my
provision for medical insurance and leisure expenses.

All the statement and figure mentioned is only based on assumption and future
expectation. However, it is properly planned as close to realistic as possible.


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