Why do we need to plan?

Have you ever wondered what will happen if

you suddenly lose your current job
you met with an accident which leaves you unable to work for months or worse permanent
your wife informs you that you’re going to be a father with a big grin
you need a bigger house as your child is grown old enough not to sleep in your bedroom

Will you have enough money to overcome all these little setbacks in life?

Planning your finance does not plan only for those foreseen expenses and should also involve planning of those “what if” situations.

However knowing the importance of personal financial planning, many people will still come up with “reasons” like

“Aiyah, we are not rich enough to do financial planning. We do not have that much money to make such grand plans for our future anyway.”

“Planning is difficult and time consuming, I don’t have the time.”

The truth is the tighter your budget is the more you’ll need to micro-manage your income/expense.
Planning of your finance is NOT difficult at all, it can starts as simple as managing personal cash flow to knowing exactly how much we need for later part of our life. eg. marriage, child’s education, retirement etc.

it can be as simple as the 4 steps below,

1. Assess your current financial situation.
2. Set your financial goal.
3. Plan how you’re going to achieve your goals.
4. Follow through what you have planned.

You are strongly advised to a financial planner to further enhance your plan in knowledge extensive areas like risk management, investment planning, tax planning, estate planning etc.