FACULTY OF BUSINESS MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONS) BUSINESS ECONOMICS

PERSONAL FINANCIAL PLANNING

(FIN533)

INDIVIDUAL ASSIGNMENT

FAMILY’S FINANCIAL PLANNING

BA2502E

STUDENT ID NAME

2022660666 YUHANA AFIFAH BINTI MOHD ALI

PREPARED FOR:

DR. HAIRULNIZAM BIN HASHIM

TABLE OF CONTENTS

No Topic Pages

1. Family’s Biodata 2-3

2. Financial Information 4

3. Monthly Income and Expenses 5

4. Balance Sheet 6

5. Cash Flow 7

6. Calculation of Outstanding Loan 8

7. Ratios 9

8. Income Tax 10

9. Comment and Advice 11-12

10. Recommendation 13

11. References 14

1
 Status Name Age Occupation

(years
)

1 Father Mohd Ali bin Awang Seman 59 Felda Settlers

.

2 Mother Salmah bin Ishak 59 Full time Housewife

.

3 1st Child Mohd Sally Idzwan bin Mohd Ali 30 Government Workers
.

4 2nd Child Yuhanis Sofia binti Mohd Ali 32 Full time Housewife
.

5 3rd Child Mohammad Faqeh Izzan bin Mohd 24 Work at Uniqlo

. Ali

6 4th Child Yuhana Afifah binti Mohd Ali 22 Study in Uitm Puncak
. Alam

2
FATHER AND MOTHER
Mr. Ali and Mrs. Salmah marriage was blessed with four children. Two boys and two
girls. Mrs. Ali is working for Felda Settlers for 35 years. He married Mrs. Salmah who is a
full-time housewife. Therefore, Mr. Ali earns RM 3 500 monthly and RM 42 000 annually.
Mr. Ali owned two cars, two motorcycle and one house in Felda Keratong, Pahang. He
settled all the payment besides the Honda Vios he just purchased on 2018.

SIBLINGS
The first child in the family is Sally idzwan and he is 34 years old. He was married in
2016 and work as a government worker at Jabatan Pertanian Kuantan. Next, Mr. Ali 2nd child
is Yuhanis Sofia and she is 32 years old, she marriage in 2017 and works as marketing
manager at shopping and retail company, Lussonet. After 4 years old of works she quit her
job and become full-time housewife. Next, his 3rd child is Faqeh Izzan a 24 years old, he
works as a retailer associate at Uniqlo. Lastly, the last child Yuhana Afifah. 22 years old and
she currently doing her degree in Business Economics at UiTM Puncak Alam, Selangor.

Motorcycle Honda Wave Purchased Price: RM Market Value: Pay by Cash

100 2500 RM 3600 (2016

3
 Yamaha 125 Purchased Price: RM Market Value : Pay by Cash
ZR 11 000 RM 13 999 (2014)

Types of Perodua Purchased Price: RM Market Value: Pay by Cash

Cars Viva 850 MT 11 000 (second hand) RM 26 534.80 (2016)
price when new
Toyota Vios Purchased Price: RM Down Payment: Loan from
90 000 RM 2 000 Bank: RM 88
000
Types of Felda House Purchased Price Full loan Already settled
House (1998): RM 250 000 in 2020

FINANCIAL INFORMATION
DETAILS RM
Food/Groceries per month 300
Insurance and road tax per year (Vios) 500
Insurance and road tax per year (Perodua) 400
Insurance and road tax per year (Wave) 200
Insurance and road tax per year (125) 200
Car fuel per month (Vios) 60
Car fuel per month (Perodua) 40
Car fuel per month (Wave) 4
Car fuel per month (125) 4
Car Maintenance per year (Honda) 500
Car Maintenance per year (Perodua) 200
Motorcycle maintenance (Wave) 50
Motorcycle maintenance (125) 70
Maxis Handphone Bill per month 80
Children Allowance per month 300
House Maintenance per year 1000
Clothing and shoes 500

4
 Aidilfitri Celebration 1500
Aidiladha Celebration 1000
Soil fertilizer 721
Laborer 150
Zakat 87.5
Utilities 150

2. MONTHLY INCOME AND EXPENSES

MONTH JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUS T S EPTEMBER OCTOBER NOVEMBER DECEMBER
RM RM RM RM RM RM RM RM RM RM RM RM
INCOME
Salary 3500 4000 3000 3500 4000 3000 2500 3000 4500 3500 3000 4500
Total Income 3500 4000 3000 3500 4000 3000 2500 3000 4500 3500 3000 4500

EXPENSES
Food/Groceries 300 300 300 300 300 300 300 300 300 300 300 300
Insurance and road tax (Vios) 500
Insurance and road tax (Perodua) 400
Insurance and road tax (Wave) 200
Insurance and road tax (125) 200
Car fuel (Vios) 60 60 60 60 60 60 60 60 60 60 60 60
Car fuel (Perodua) 40 40 40 40 40 40 40 40 40 40 40 40
Motorcycle fuel (Wave) 4 4 4 4 4 4 4 4 4 4 4 4
Motorcycle fuel (125) 4 4 4 4 4 4 4 4 4 4 4 4
Car maintenance (Vios) 500
Car maintenance (Perodua) 200
Motorcycle maintenance (Wave) 50
Motorcycle maintenance (125) 70
Maxis Handphone Bill 80 80 80 80 80 80 80 80 80 80 80 80
Children Allowance 300 300 300 300 300 300 300 300 300 300 300 300
House Maintenance 500 500
Clothing and shoes 300 200
Aidilfitri Celebration 1500
Aidiladha Celebration 1000
Soil fertilizer 721 721 721 721 721 721 721 721 721 721 721 721
Laborer 150 150 150 150 150 150 150 150 150 150 150 150
Zakat 87.5 87.5 87.5 87.5 87.5 87.5 87.5 87.5 87.5 87.5 87.5 87.5
Utilities 150 150 150 150 150 150 150 150 150 150 150 150
Total Expenses 1896.5 1896.5 1896.5 2196.5 3396.5 2396.5 2896.5 1896.5 1896.5 1896.5 2096.5 4516.5

5
3. BALANCE SHEET
Mr. Ali’s Balance Sheet Statement for year ended 31st December 2022
ASSETS RM LIABILITIES RM
Liquid Assets: Current Liabilities
Cash in hand 2500 Credit card balance 1500
Savings Account Balance 10000
Total Liquid Assets 12500 Total Current Liabilities 1500

Lifestyle Assests: Non-Current Liabilities

Clothing and shoes 500 Car loan Balance 63188.8
Current Value (Vios) 50000
Current Value (Produa) 22000
Current Value (Wave 100) 2000
Current Value (125) 6000
Market Value (House) 300000
Total Lifestyle Assests 380500 Total Non-Current Liablities 63188.8
Total Liabilities 64688.8
Total Net Worth 328311.2

6
4. CASH FLOW
Mr. Ali Cash Flow Statement for year ended 31st December 2022

7
 INCOME RM
Salary 42000
Total Income 42000
EXPENSES: RM
House Maintenance 1000
Fuel (Vios) 720
Fuel (Produa) 480
Fuek (Motorcycle) wave 48
Fuel (Motorcycle) 125 48
Car maintenance (Toyota) 600
Car maintenance (Produa) 200
Motorcycle maintenance (wave) 50
Motorcycle maintenance (125) 70
Food/Groceries 3600
Utilities 1800
Maxis Handphone Bill 1200
Insurance and road tax(Toyota) 500
Insurance and road tax(Produa) 400
Insurance and road tax Motorcycle wave 200
Insurance and road tax Motorcycle 125 200
Aidilfitri Celebration 1500
Aidiladha Celebration 1000
Children Allowance 3600
Zakat 1050
Total Expenses 18266
Contribution to savings 23734

CALCULATION OF OUTSTANDING LOANS

Toyota Vios Monthy Installment
Term charger rate = Total loan * Interest rate * Tenure Period

8
 = RM 88 000 * 3.25% * 9 years
= RM 25 740
Total loan = Bank loan + Term charger rate
= RM 88 000 * RM 25 740
= RM 113 740
Monthly Installment = Total loan / Tenure period in month
= RM 113 740 / 108 Months
= RM 1053.15
Installment paid month = Monthly installment * Tenure period in month
= RM 1053.15 * 48 months
= RM 50 551.20
Balance installment unpaid = Total loan – Installment paid
= RM 113 740 – RM 50 551.20
= RM 63 188.80

5. RATIO

9
1. Current ratio Liquid asset / Current Liability
= RM 12 500 / RM 1 500
= 8.33 times
2. Liquid asset to make take home pay ratio Liquid asset / Take home pay
= RM 12 500 / RM 42 000
= 0.29 times
3. Debt ratio Total liability / Total asset
= RM64688.80 / RM393 000
= 1.64*100%
= 16.4%
4. Debt service coverage ratio Take home pay / Debt service chargers
= RM 42 000 / RM 12 637.80
= 3.32 times

6. INCOME TAX

10
 PARTICULAR RM
Salary 42000
Total Aggregate Income

Tax reliefs:
Individual 9000
Wife 4000
Lifetstyle 2500
Unmarried Child (2000x2) 4000
Additional lifestyle 500
Total Relief 20000
Chargeable income 22000

Tax Rate:
On the first RM 2000 150
On the next RM 1999*3% 59.97
Total Income Tax Rate: 209.97

Less: Rebate
Zakat Pendapatan 1050
Total Rebate 1050
Total Tax Payable -840.03

7. COMMENTS AND ADVICE

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 Based on Mr. Ali's family financial planning, I have some comments and advise for
this family that will help them enhance their expertise in managing the family's finances in
the future.
Mr. Ali's monthly income and spending are variable since he works as a Felda
settlers', and his average monthly revenue varies from month to month. Because his family
just lives in the village, this money covers all of his family's daily expenses. The balance
statement shows that Mr. Ali has adequate assets to meet all of his liabilities, with total assets
of RM 393 000 and total liabilities of RM 393 000. I recommend that Mr. Ali refrain from
making any further commitments since I am concerned that he will have difficulty managing
the debt in the future. This is because the greater the difference between the value of assets
and the value of obligations, the easier it will be for Mr. Ali to manage the debt in the future.
Thus, the overall net worth is currently positive (RM328 311.20), indicating that this family
is in good financial condition. I believe Mr. Ali can boost his assets by increasing the amount
of investment and savings or try to reduce the number of liabilities a little bit to ensure there
is no unwanted financial problem in the future.
Furthermore, even though the cash flow statement displays a positive cash flow, the
expenses are extremely considerable. Mr. Ali spends more on his car expenses because of the
requirement to pay for insurance, road tax, fuel, and maintenance each year. Mr. Ali's
children's expenses are increased because one of them is still in school. Mr. Ali spends more
than RM 3600 every year solely on his children. Furthermore, I discovered that Mr. Ali's
family overspends on food/groceries by RM 3 600 every year. I recommend that he eliminate
some of their spending in the future to improve their savings and maintain a healthy cash
flow. 
Mr. Ali's current ratio is 8.33 times in the ratio section. It implies that he had no
difficulty repaying short-term loans due within the next year. Mr. Ali's liquid asset-to-take-
home pay ratio is 0.29. This demonstrates that he has sufficient liquid assets to meet his
short-term financial obligations. The debt ratio indicates a favorable scenario because it is
less than 30% (16.4%). This suggests that this family will have no trouble obtaining a new
loan. In terms of debt service coverage ratio, Mr. Ali gets RM 3.32 in take-home pay for
every RM 1.00 in needed debt payments and interest. The larger the percentage, the better,
because it indicates that Mr. Ali's family can make payments.
Not to forget, Mr. Ali's total tax liability is negative RM 840.03. When you incur
losses and have not made any revenue, you may be subject to negative income tax. This only
applies to self-employed people since if salaried people do not generate any income in a

12
given year, they fall into the 0 tax bracket, which means they are not required to pay any
taxes. However, I propose that Mr. Ali lower the tax payable by raising the total relief or
rebate so that the amount of taxes to be paid is reduced.
 

8. RECOMMENDATION

13
 Based on the financial statement that has been made. I can say that Mr. Ali’s family
has a stable financial. But I can recommend to their family to not make another loan because
the outstanding loan balance for the marriage is still high value. It is because, they will be
facing a financial failure if Mr. Ali can’t afford the debts.
Another easy strategy is to pay off the obligations in order of size, as doing so will
offer them more money to use as leverage when attacking their larger bills. Another tried-
and-true strategy is debt consolidation, which entails consolidating any personal loans into a
loan with a lower interest rate, like a mortgage.
Savings also provide people with a cushion of money to cover unforeseen expenses,
but they can also be invested to gradually increase someone’s wealth. Depending on what
them intend to accomplish with the money, everyone will have various savings objectives.
There could be a holiday. The most important thing is to decide how to best spend this
money rather than wasting it on pointless items.
Lastly, this family can put a budget together. For example, look around for better
prices on items like gas, electricity, and insurance, and keep an eye out for sales when
grocery shopping. For a groceries shopping, Puan Salmah can make a list of items that is
really important to buy. It is very good if this family can cut unnecessary cost. But one thing I
can advise is avoid cutting your budget to the absolute bare minimum at all costs.

REFERENCES

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What is Negative Income Tax?/ Do I Have to Pay Tax if I’m Suffering Losses. (2020,

November 6). https://www.canarahsbclife.com/tax-university/articles/what-is-

negative-income-tax.html

Liability: Definition, Types, Example, and Assets vs. Liabilities. (2022b, July 5).

Investopedia. https://www.investopedia.com/terms/l/liability.asp

The Family Office. (2021, January 25). Shifts in Public Equity Markets.

https://www.tfoco.com/en/insights/articles/financial-planning-importance

What is EPF & KWSP? Kumpulan Wang Simpanan Pekerja - NBC.com.my. (2013, April 24).

EPF & KWSP. https://www.nbc.com.my/epf/what-is-epf-kwsp.html

7 Money Management Tips for Improving Your Finances. (2022, June 8). Capital One.

https://www.capitalone.com/learn-grow/money-management/money-management-

tips/

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