ALYA BATRISYIA BINTI ARIFUDIN (2022905617) (FIN533 IA)

FIN533 Personal Financial Planning
Individual Assignment

Financial Planning of En. Sahli and Family

Presented by Alya Batrisyia bt Arifudin
(2022905617)

Prepared for Datin Dr Zahariah Binti
Sahudin

TABLE OF CONTENT

NO. CONTENT PAGE 1

1. ACKNOWLEDGEMENT 1
2. FAMILY BACKGROUND 2
3. FINANCIAL INFORMATION 3
4. MONTHLY EXPENSES IN 2021 4
5. BALANCE SHEET STATEMENT
5
6. CASH FLOW STATEMENT 6-7
7. RATIOS AND COMMENTS 8-9
8. INCOME TAX YEAR ASSESSMENT 2021
9. COMMENTS AND ADVICE / IMPACT / RECOMMENDATION 10
10. APPENDICES AND REFERENCES 11-14
15-16

ACKNOWLEDGEMENT 1

First of all, praise and appreciation to Allah for showering his blessings on me
during my assignment project, allowing me to completely finish the task. Many
people have contributed data that I require, and a huge amount of work has gone
into it. I would like to convey my gratitude to everyone who has assisted me in
getting through this process till I am able to finish this assignment.

Dr Zahariah Binti Sahudin, my lecturer, deserves praise for her patience in coaching
me through the task. Her guidance has aided me in completing this work on time. I'd
also like to express my gratitude to En. Sahli bin Abas, for his assistance with the
task. Without his assistance and guidance, completing the job on time will be tough.

Finally, I'd like to express my gratitude to my family and friends for their
encouragement and support throughout this effort. When I'm feeling down, their
encouragement and support are helpful, and I was able to complete the assignment
successfully.

Family Background 2

Datin Dr. Zahariah has assigned me to create a financial plan
for a family in 2021 for this individual assignment. As a
result, I chose my friend's family to complete this project.

En. Sahli Bin Abas, the husband, and Pn. Norizzah Bt Mohd Daim,
the wife, have three children: Aqilah binti Sahli, 25, Anieq Bin
Sahli, 18, and Arif Bin Sahli, 22. However, because Arif has his
own money, En. Sahli can only support two of his children. Aqilah
is currently pursuing a degree at the University of Malaya.
And Anieq is still in school this year to take the Sijil
Peperiksaan Malaysia (SPM).

En. Sahli was born on October 18th, 1970, and his wife, Pn.
Norizzah, was born on January 2nd, 1970. This pair was born
at Sabak Bernam Hospital. En. Sahli works at Human
Resourse Department at private sector company. With his
intelligent, he managed to survive from dismissed his job when
this Pandemic Covid-19 appeared.

FINANCIAL INFORMATION 3

Continue here...

MONTHLY EXPENSES 4

BALANCE SHEET STATEMENT 5

Total Asset, total Liabilities
and Net Worth PIE CHART...

CASH FLOW STATEMENT 6

Continue here...

B
A
R

of

C
H
A
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T

En. Sahli and Family Annual Expenses




7

RATIOS CALCULATION 8

ASSET LIQUIDITY

Liquid Assets to Take-Home Pay Ratio Current Ratio
= Liquid Asset = Liquid Asset
Take-Home Pay X 100% Current Liabilities X 100%


RM32,000 X 100% = RM32,000 X 100%
RM73,200-RM1,200 0
=

= 44.44% = 0 / NIL

= Debt Ratio LEVEL OF DEBT
Total Liabilities
Total Asset X 100% Debt Service Coverage Ratio

= RM269,200 X 100% = Take-Home Pay
RM887,356 Debt Service Charges

= 30.34% = RM72,000

RM7,200+RM4,800
= RM 6

RATIOS COMMENTS 9

Liquid Assets to Take-Home Pay Ratio

The liquidity condition for liquid assets to take-home pay ratio is 44.44 percent, which is good
because it is between 25 and 50 percent. En. Sahli aims for liquid assets of three to six
months' worth of take-home earnings as a minimum.

Current Ratio

Since there are no current liabilities because
En. Sahli pays them on time, this family current

ratio is not required.

Debt Ratio

En. Sahli ability to repay debt has deteriorated, and he may have trouble obtaining fresh loans.
For persons working in the private sector, this ratio should be less than 30% but En. Sahli's debt

Debt Sreartvioicise3C0o.3v4e%r.age Ratio

For every RM1.00 in debt repayment obligations, this family earns
RM6. The higher the number, the greater, as it indicates the ability to

repay the debt.

INCOME TAX YEAR ASSESSMENT 2021 10

Continue here...

COMMENTS AND ADVICES 11

En. Sahli's financial status is stable, according to the balance sheet, since the family contributes to
savings. Additionally, with total assets of RM 887,356 and total obligations of only RM269,200, the
family's assets are sufficient to cover the liabilities. En. Sahli boosted his income by renting an apartment,
which will benefit his potential income. En.. Sahli's net worth is likewise rather large, at RM 618,156,
with few liabilities, showing his employment and financial steadiness. He just need to consistently pay
the non-current liabilities installment which is his house and car. there are no problem for him to pay the
debt since the number of net worth is stable.

En. Sahli provided RM19,088 to savings because their income above their entire costs, which were
RM89,300 and RM70,212, respective, according to the financial flow statement. However according
family expenses, En. Sahli spent a significant amount of money on groceries and eating out, totaling
RM8,400 a year. However, transportation costs, such as automotive insurance and gasoline prices, are
the most expensive, costing RM9,400 each year. It was because he had three cars and one motorcycle.
I advice En. Sahli to reduce the use of cars to cut the fuel cost and choose a better way to reduce the
cost of eating expenses by just eat at home. Moreover, since Covid-19 appeared, En. Sahli can cut the
cost of family vacation so he can use it to pay debt or another important things.

12

COMMENTS AND ADVICES

Finally, the tax strategy in income tax planning is to pay the taxes and plan the
income to minimize the amount of tax owed. In this case, En. Sahli no need to
pay yearly income tax for the year 2021 because the amount of tax payable on
income tax year assessment are negative (RM162). Since En. Sahli overpaid, he
got a refund from the government.

Impact of Covid-19 to En. Sahli and Family 13

As the far-reaching effects of the COVID-19 pandemic
continue to impact communities around the world,
En. Sahli can handle this situation wisely because he
got a good financial strategy by saving money for
future. Even though the amount of expenses are
increased, En. Sahli and family are not affected
because he has a back up money to use. However,
the saving money balance will be decrease if En. Sahli
keep using it. He can plan a better strategy affectively
to bear the expenses of his family.

RECOMMENDATIONS 14

En. Sahli can also put his Retirement planning is very Reducing meal
savings on investment important since En. Sahli is expenses by not
platform such as Amanah getting old. He can plan by eating-out often
Saham Berhad. With this getting PRURetirement and be more wisely
way, En. Sahli can growth Growth (Prudential) for in financial savings.
his savings. retirement and not be
worried about his income in
Since there is no insurance planning future.
in this family, i would like to
recommend En. Sahli to subscribe Just use one car
and pay premium of life insurance at one time, so
and medical insurance. This will help that the fuel cost
family's financial steadiness if will be lessened.
anything happend in future.

APPENDICES 15

Figure 1 : Full Set PC Figure 1 : Perodua Alza car

Figure 1 : Electric Bills Figure 1 : Wifi
Figure 1 : Proton Wira car

references 16

https://omnia.sas.upenn.edu/story/covid-19-impacts-individual

https://smallbusiness.chron.com/would-company-negative-
income-taxes-but-net-income-income-statement-35332.html

En. Sahli and Pn. Norizzah, Financial Statement 2021

Explanatory_Notes_BE_2021_2.pdf

Thank You!

HAVE A NICE DAY !