BIFF5053 ISLAMIC WEALTH PLANNING AND MANANGEMENT

INDIVIDUAL ASSIGNMENT

PREPARED FOR:

DR. NORAINI BINTI YUSUFF

PREPARED BY:

STUDENT NAME MATRIC NUM

MUHAMMAD HIDAYAT ‘IZZUDDIN BIN JAMIL 830204
CONTENT
INTRODUCTION…………………………………………………… 1

FISHBONE DIAGRAM……………………………………………… 2-3

CASH FLOW INCOME……………………………………………… 4-5

CONCLUSION………………………………………………………...6

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FISHBONE ISLAMIC FINANCIAL PLANNING

INTRODUCTION

In order to make our life become more strategic and more efficient, we could plan all
of our expenses through out a year or annually. This means that all of our saving, expenses and
others could be written in a one statement of cash flow where we could see where exactly that
we expense or use our money in a month. After that, we could estimate or plan to save some
assets for the future.

From this, we must take consider about using the term of wealth creation, wealth
protection, wealth accumulation and lastly is wealth distribution. Wealth creation means that
how we could increase our assets for saving. Wealth accumulation could be said as an
accumulation of our asset based on what we get from the wealth creation. Next, after we have
got some asset to accumulate, then we will sure we need to protect it. So here come the wealth
protection where we must protect our asset from any harm happen. Lastly, is wealth distribution
where we must choose one of our trustee person to handle our asset if something happen to us.

From all the term that have been mention, all of that could be filled in one diagram
which is known as fish bone diagram. Base on one research written by (Gheorghe ILIE, 2010),
they said that fishbone diagram is an analytical tool that gives a systematic way of looking at
effects and the causes that produce or contribute to those effects. Because of its role, the
Fishbone diagram is also referred to as a cause-and-effect diagram. So, in the case of financial
planning, wealth creation, wealth protection, wealth accumulation and wealth distribution
could be said as a cause an the decision that have been made by a certain person for planning
their cash flow could be known as an effect.

I also has been tasked to use this fishbone diagram to show about my financial planning
in the future. My financial planning only will be planned as a single person due to lack of
experience in a marriage live. The financial planning for this assignment is a planning for
annually where I will start from my first work and until I can have a certain amount of saving
that have been targeted until the future.

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FISHBONE DIAGRAM

Based on the fishbone diagram above, I have planned on how to distribute all of my
importance thing for my financial planning. All of the subject above is categorised according
to wealth accumulation, wealth creation, wealth protection and wealth distribution.

First of all is wealth accumulation where my income will be coming from my salary
and my ASB finance. This is because both of this income will be transferred into my account
monthly except for ASB because it will be set as an asset for the future. So, the one that will
support my life is my salary from my work.

Next is for wealth creation where I could add some more asset or some more money
into my account for me to survive. My wealth creation is coming from trading or making an
investment under the shariah compliance. For example, I could make an investment for the
estate like palm oil, oil and gas and much more. This trading somehow will can make me to
have some saving for the future or I can make the benefit from this trading as an emergency
fund for the future.

Thirdly is wealth protection where I can protect my wealth if something happen for
me. My wealth protection is coming from the Takaful where under it will be the Hibah and
the medical card from the same company. If in the future I get an enough fund I would also to

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buy a house for me. After that, I will take the MRTT where it will also protect my house if
something bad happen to it in the future.

Lastly is wealth distribution where it was one of the important thing that we must do
but it always have been forgotten most people. In order to make sure that our wealth is pure
we must purify it by giving out sadaqah and zakat and both of this thing has been applied into
my financial planning. Next, I also have to decide to write a wills for giving out my assets to
my trusted person if something bad happens to me. This is to make sure that my wealth
would not be wasted away but it can be increase by other persons.

CASH FLOW OF IN AND OUT OF INCOME

SUBJECT VALUE
INCOME RM 4250
SAVINGS GOAL RM 350
HOME RM 822
DAILY LIVING RM 250
TRANSPORTATION RM290
ENTERTAINMENT RM 193
HEALTH RM269
HOLIDAY RM 85
RECREATION RM 25
SUBSCRIPTION RM 46
PERSONAL RM 50
FINANCIAL OBLIGATION RM 530

Based on the financial planning above, I have planned towards some income and also
an expenses for my monthly living. First of all is my income that will come from my salary
and my trading activity will give me back an income of RM 4250. This income will be
distribute into my expenses that I have my obligation to pay and also the importance need as
a human for a daily life.

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 The first expenses is coming from the home where it cost me RM 350. Under this
home expenses will consist of many things such as rent, utilities, mobile phone and wifi. All
of this cost could be said as an important thing for me. This is because as single men that will
live alone and only need to go to work, this is the commitment that I need to face in the
future.

Next is daily living which consist matter like groceries and toiletries which will cost
me RM 250. Groceries like wet food and dry food is a basic matter for the human to living
and also will include as costing for a daily live food while toiletries will be involve something
like soap and shampoo.

Thirdly is transportation where it will include gas and insurance where it will cost
RM290. As a person that will go to work every day, I will need a transportation like car
where insurance and gas is two basic things that importance for a transportation to keep
moving also to be legal to move on the road.

Entertainment is just a side thing for me to have something that I can do during my
free time. My entertainment is consist of Netflix, video games and bowling which will cost
me RM193 a month. But, this entertainment will not be do daily because it maybe will be
wasting of money. So, I will make this entertainment be my activity as my activities after two
month a time where I need to make sure that I could save money first for this entertainment.

Next is health where it will be include Takaful Hibah and medical card which will
cost me RM269 a month. The plan that I will take the one that have promote by FWD
Takaful company where I see it as one of the planned that is affordable for a person that just
want to starting as independent person and just starting to work.

Holiday also have been planned in my financial list where I will save some money for
a certain period for me to go holiday as my reward for working hard to earn some money.
The thing that is basic thing that I need to make sure is like air fare, food, and hotel where I
will save for RM85 a month for the holiday.

I also need to have some healthy style, so, I have some saving for my recreation
activity where I need to buy some equipment for it. This will cost me for about RM25 a

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month. This recreation activity will not be doing weekly or daily, but it will be done maybe
one every 3 months due to need to save money to buy some equipment for it.

For subscription, I also need to consider about it because it is the application that keep
supporting me for my daily work in my mobile phone. So the subscription will costing me for
about RM36 a month.

After that, I also have need to keep some for my personal thing like clothing, gift and
barber. If my cloth is damage or my hair have affect my image, I just need to take out my
saving for this thing and go to the store for it. This personal will cost me to save for about
RM 50 a month.

Lastly is my financial obligation that I need to pay every month where I will consist
of PTPTN, Zakat, for my parent and sadaqah. All of this will costing me for about RM 530 a
month.

From all of the financial planning that have been talk, it have brought me to a rough
planning for every year that I can see in the future. By adding my savings goals for every month
which will cost me for RM 350 every month, the potential that I could save for one year is
RM17294 for every month. But this is a rough saving because we cannot predict what will
happen in the future because maybe I will use the potential money that I will save every month
for something else that is more important.

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CONCLUSION

In conclusion, a financial planning is very important for every person. This is because we will
need this planning to make sure that our live in the future does not getting ruin because we
know what we capable of buying. We also can make our-self discipline by saving for something
that is very important or is needed for us to keep alive or survive in this world. But, we also
need to make sure that the wealth that have we got coming for the good sources. That is why
we need something like sadaqah or zakat to purify our wealth and to make sure that we could
get a good and happy life in the future.