i) Identify the steps make financial plans for his wedding
Planning for a Financially Secure Marriage
Posted at July 11, 2011 in Young Adult Some married people would joke that there are three Rings in marriage the Engagement Ring, the Wedding Ring and the Suffer-Ring! Ouch! How did that ring ever get onto our finger? Statistics have shown that one of the root causes of marital problems revolves around money. Just imagine if one individual cant manage his finances well, what more when you put the two together (along with a few more juniors!) Lets Talk Are you a saver while your spouse is a spender? Coming together from two separate worlds, we may have our own ideas and feelings about money. We should sit down with our spouse to discuss how we regard and use money be it how many pairs of shoes you need to buy to how many packs of cigarettes you smoke per month. Be honest about all debts and loans, especially if you have any outstanding credit card loans or the number of Ah Long friends! Being opened with your finances, you can be difficult but its better to share that information now than face surprises later. Talking about money early in your marriage may save you a lot of heartache. Tying the Financial Knot When we tie the knot, we have to ensure that our own financial knot is not entangled. It would be wise to be clear on each others roles and responsibilities pertaining to household finances. For example, who is going to pay the bills, save for childrens education and pay those monthly loan installments? It is also very important to decide on the issue of parental allowance as both parties have to agree on giving an acceptable amount to parents on both sides. Ideally, if both the husband and wife are working, they should maintain at least 3 accounts My Account, Your Account and Our Account. This would allow each party to maintain some independence over their personal purchases while contributing their fair share towards joint expenses. Having a combined Cash Flow Statement showing His, Her and Our income and expenses, may be a good idea. Another area is on the treatment of each others assets and liabilities. If a marriage starts on a clean sheet of paper, then both of you could still decide later on either in joint names or in either partys name. However, if the union comes with excess baggage, then the couple would need to be clear on how to deal with their existing personal assets and liabilities. Are they going to combine them or treat them separately as their own responsibilities? Very often, couples tend to carry over their liabilities into their marriage and that may be the bone of contention later on in their married life. Having a combined Net Worth Statement showing His, Her and Our assets and liabilities, may prevent any arguments. Peace of Mind Another very important area that should be looked into is Life Insurance. It would almost be a necessity to have sufficient coverage when we get married and start a family. This is because we are no longer living for ourselves anymore but also for our loved ones. Are we to leave our spouse and children in dire financial distress should something unfortunate happen to us? Life Insurance ensures that our dependents can pick up the pieces and carry on living with some measure of financial comfort. They need not worry about where the money coming from or whether they would still have a roof over their heads. For those who already have some life insurances, it is advisable to review your benefits. You may need to drop some coverage if your spouses plan covers the family or perhaps enhance them to include your family. It is also advisable to update your beneficiaries if necessary. Ultimately, we want to optimize our benefits to be able to walk down the aisle with peace of mind. Plan Your Financial Future Together After reviewing what you have and expressing your feelings about money, you can now start planning your financial future together, which in essence is planning your life together as husband and wife. The other area may be your love nest. Where is it going to be? When is it going to be? Will it be landed or a space in the air? If landed, will it be single or double-storey or perhaps a semi-D or your very own bungalow? Property cost may be the single largest family expense and both of you have to manage your expectations. The second thing may be children. Those bundles of joy may need bundles of cash too! Its not too far-fetched to say that we may need as much as One Million Ringgit to raise a child in the future as a big chunk of it goes towards their education. Therefore, if the both of you decide to have a football team, then youll really need to sit down and start planning! Last but not least, one of you may decide to quit job after marriage to concentrate on building a family. Thats not a bad idea but this topic should be discussed as early as possible to better prepare yourselves. Both of you have to agree on whos going to be the Finance Minister and whos going to be the Home Minister. It may be gradual (like going from full-time to part-time) or it may be immediate but the decision should not give raise to financial predicament. Living Happily Ever After Marriage is just not a word; its a sentence a life sentence! As you enter into this new stage of life, remember to review your finances together regularly as both of you will be taking a long journey together as man and wife. While Love is important, Money is a necessary ingredient towards a blissful marriage. So, start Planning for a Financially Secure Marriage so that we too, may one day have a fairytale ending: and they Lived Happily Ever After!
ii) Steps in making a personal loan CIMB Bank CASH PLUS PERSONAL LOAN
*Features Unsecured term loan for personal use. A hassle free personal loan to fulfill your dream. No Collaterals, no guarantor and flexible repayment tenure up to 5 years.
Collaterals NIL Loan Margin Up to 8x of gross income Loan Amount Min : RM 2,000 Max : RM 100,000* * Subject to maximum 8x of gross income whichever is lower * Subject to overall debt commitments and credit risk assessment. Loan Tenure Minimum 1 year Maximum 5 years
Here are the product disclosure sheet and instalment table :
*Requirements Eligibility:
Individual applicant only
Aged between 21 and 60 years upon application Minimum income RM2,000(basic + fixed income only)
Income Documents Under Employment:
Application Form
Photocopy of MyKad Latest 3 months salary slips Latest 3 months Salary-Crediting Account / latest EPF statements / latest EA Form / latest BE Form and tax receipt
Self Employed: Application Form Photocopy of MyKad Business Registration Form (Form 9, 24 ,49, MA) Latest 6 months Business Bank Statements Latest B form with proof of tax payment receipt/ latest Profit & Loss and Balance Sheet statements Latest 6 months of commission statements and bank statements for commission earner (example: Insurance Agent, Real estate agent and etc)
Individual applicant only Aged between 21 and 60 years upon application Minimum income RM2,000(basic + fixed income only)
*Profit Rates Loan Amount (RM) Effective Lending Rate (Fixed rate, reducing balance, daily rest) Equivalent to fixed rate (Subject to customer remains until end of tenure) 50k-100 12.32% 6.88% 25k-49 17.11% 9.88% 2k-24 22.39% 13.38%
*Fees & Charges Products/Items
Charges
1 Stamp Duty 0.5% from the loan amount 2 Insurance Compulsory (Depending on entry age and loan tenure)
iii) Budget Planning
Adam and Aida have been going out for quite a while now. Adam had already cleared all his professional exams and is already a Chartered Accountant while Aida is currently the Team Leader at her bank. They are doing pretty well with their career and are contemplating moving into the next stage of their lives as husband and wife. Read on to see how they now have to work out their finances prudently not merely on their own but jointly. Adam was walking past a jewelry shop and he stopped to check out the diamond ring he has been eying for the past few weeks. He felt it was about time for them to settle down though realizing that the marriage expenses involved can be pretty substantial. Actually, he was waiting for his bonus but so happened on that day, there was a special sale. Being a little kiasu, he didnt want to miss this opportunity and thought now is the time to grab it. Decisively confident that bonus is due within a months time, he figured that he could very well charge it to his credit card first and by the time the payment is due, his bonus would have come in. With an irresistible sale gift of a candlelight dinner voucher for two at a posh hotel, he decided to go for it. Charge it! he exclaimed. The damage done - RM4, 000 and that was after a good discount ! This was his single largest purchase via his credit card but hey, its only once in a lifetime, right? Adam was well aware of the responsibility that comes with owning a credit card and he has been very disciplined by paying off his credit card bills in full every month. As a rule of thumb, we should never swipe the card if we cannot pay for it in cash. A credit card merely acts as a payment instrument that usually comes with reward points or some other incentives - it is to be utilized as a transitional substitute for cash but not as hard cash! Always discipline yourself to pay in full on due dates after charging your credit card(s) or else be prepared for penalties and finance charges of more than 18% p.a. If we have a tendency of not paying in full but still want the convenience of cashless purchases, move on to a debit card for a better alternative. A debit card is almost similar to an ATM card whereby the amount spent will be immediately deducted via on-line basis direct from your bank account. In other words, you would only be spending up to your own savings amount. With a diamond ring in hand together with a candlelight dinner voucher thrown in, whats missing for a romantic ambiance was the bouquet of roses. Adam planned a surprise moment for Aida, so on the pretext of celebrating his promotion, he invited Aida out for a dinner. As they were about to finish their dinner, Adam graciously presented Aida with the bouquet of roses leaving her amazed but pretentiously puzzled hoping for more dramatic action for a heavenly reunion. On bended knees, Adam with the symbolic diamond ring in hand, blushingly proposed to take Aida as her life partner and she accepted immediately with a loving smile and gestures. Dr. Joyce Brothers said, Marriage is not just spiritual communion and passionate embraces; marriage is also three meals a day, sharing the workload and remembering to carry out the thrash.If we think that owning a car is a big commitment, marriage is even a bigger commitment and should be entered into only if you feel capable of handling the responsibilities. With the romance comes the real issue, including managing finances mutually and harmoniously. Be realistic about your wedding plans based on your budget and do not try to live up to the expectations of other people, including your prospective spouse. Like in other aspects of your life, have a wedding budget. Aligned to your needs and wants - and most importantly, discuss with your spouse-to-be on how much money both of you can comfortably afford. Though it may be a once in a lifetime auspicious event, but it may end up taking up your lifetime earnings to pay off all your wedding debts. Adam and Aida sat down together to talk about their expectations of the whole wedding ceremony and decided to work out their following wedding budget: NO. ITEMS BUDGET ACTUAL 1 Wedding Dinner (500 guests@ RM60) 30,000 2 Wedding RIngs 6,000 3 Wedding Photos 3,000 4 Wedding Gown & Suit 4,000 5 Gifts 3,000 6 Honeymoon (Within Asia) 4,000 7 Other "surprises" 5,000
TOTAL 55,000
From the above budget, they now have a better idea of how much they roughly need for their wedding arrangements. They believe that the gifts from their guests (normally in cash) would be able to cover a major portion of the dinner costs. Adam has also accounted for a 10 % under the item called Other surprises to cater for any other incidental and unforeseen expenses like costume jewelry, facial, hairdo, etc commonly applicable to any weddings. Its only prudent that we allocate such an amount for such contingencies. A common legendary French proverb quoted Love makes passion, but money makes marriage. As much as we hate to admit it, money will somehow affect our relationship with each other. For couples intending to tie the knot, it is best to be very clear where we stand pertaining to our expectations of marriage. Otherwise, you may end up getting entangled with all the money issues which might eventually strangle the love you have for each other.
Passive Income, Aggressive Retirement The Secret To Freedom, Flexibility, and Financial Independence (How To Get Started) (Rachel Richards (Richards, Rachel) )