BACHELOR OF BUSINESS AND MANAGEMENT (HONS)

OPERATION MANAGEMENT
PERSONAL FINANCIAL PLANNING

(FIN533)

INDIVIDUAL ASSIGNMENT

FAMILY’S FINANCIAL PLANNING

PREPARE FOR:

DR. SITI ZAITUN SADDAM

PREPARE BY:

MUHAMMAD NABIL IZZUDDIN BIN MUSA

(2022898118)

FIN533 – BA247 2D

SUBMISSION DATE:

WEEK 7
INDIVIDUAL ASSIGNMENT

FAMILY’S
FINANCIAL
PLANNING
SEMESTER 2
2022/2023
SELECTED FAMILY:
MR. RUZAINI ROSLI

BA247 2D

FIN533 PERSONAL FINANCIAL PLANNING

Table of Contents

1.0 Bio Data of Family ............................................................................................................................. 4

2.0 Financial Information ........................................................................................................................ 5

3.0 Monthly Expenses ............................................................................................................................. 6

4.0 Balance Sheet Statement .................................................................................................................. 7

5.0 Cash Flow Statement ........................................................................................................................ 8

6.0 Ratio .................................................................................................................................................. 9

7.0 Comments and Advice on Family’s Financial Situation................................................................... 10

Table 1 financial information .................................................................................................................. 5

Table 2 monthly expenses ...................................................................................................................... 6

Table 3 balance sheet statement ............................................................................................................ 7

Table 4 cash flow statement ................................................................................................................... 8

1.0 Bio Data of Family

Figure 1 Mr. Ruzaini and the family

Mr. Ruzaini Rosli and his spouse are newlywed recently this year. Mr. Ruzaini currently work
at Cotton On Group, work position as Assistant Store Manager for Typo outlet located at Typo Nu
Sentral, Kuala Lumpur. He has been working in this area for almost more than 5 years. He is now 30
years old, and he is 6 out of 9 siblings. His wife’s name Agustina binti Mally. His wife serves and working
as a nurse in private sector at Hospital Pantai Kuala Lumpur. Mr Ruzaini need to pay 6% of income tax
monthly and for need to contribute EPF contributions at RM495 for every month.

Both of them currently are expecting their first child born on next year roughly on mid-April
2023. With this situation, there will be an increase in the financial issues in future as this is their first
time having a child in their family and need to construct a preparation the arrival of the baby carefully.

Ruzaini’s family live and renting apartment house at Segambut Jaya, Kuala Lumpur. He has a
Honda City 2015 car and a Yamaha NVX motorcycle which represent as their assets as their family
assets. He uses the motorcycle as the main transport for daily purpose for back and forth to his
workplace.

Before I managed to continue my degree studies, I was hired by him to work as a permanent
part-timer and work under him for almost 8 months from March 2022 until October 2022. He was my
supervisor while working in Typo, Cotton On Group Malaysia.

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2.0 Financial Information

ITEM AMOUNT (RM)

MONTHLY SALARY 6,300
CASH IN HAND 500
TABUNG HAJI BALANCE AS OF 31 DECEMBER 2022 12,000
CIMB BANK SAVINGS ACCOUNT BALANCE AS OF 31 DECEMBER 2022 15,300
MONTHLY RENT 1,000
IPHONE 11 (MARKET VALUE) 1,600
CAR (MARKET VALUE) 35,000
MOTORCYLE (MARKET VALUE) 10,500
MONTHLY INSTALLMENT OF CAR 700
CAR LOAN OUTSTANDING BALANCE 28,000
CAR INSURANCE (MONTHLY) 300
CAR ROAD TAX RENEWAL ON JULY 2022 890
MOTORCYCLE ROAD TAX RENEWAL ON MARCH 2022 350
FUEL, PARKING ANDD TOLL EXPENSES (MONTHLY) 400
HOUSEHOLD ITEMS 23,000
WEDDING EXPENSES (ATTIRE, DOWRY AND NIKAH CEREMONY) 7,000
CLOTHING 1,200
UNIFI TM (MONTHLY) 136
TNB (MONTHLY) 100
SYABAS (MONTLY) 75
GROCERIES (MONTHLY) 200
PARENT'S ALLOWANCE (MONTHLY) 500
DONATIONS (MONTHLY) 100
PREMIUM INSURANCE (MONTHLY) 150
VACATION 700
DINNING PER MONTH 300
CURRENT EPF BALANCE 50,000
EPF CONTRIBUTION (MONTHLY) 495
INCOME TAX (MONTHLY) (6,300 X 6%) 378
INSURANCE CLAIM RECEIVED 1,000
BONUS (3 MONTHS EQUIVALENT, RECEIVED ON JULY 2022) 18,900
ZAKAT FITRAH 63
PUBLIC GOLD SAVING ACCCOUNT (AS AT 31 DECEMEBER 2022) 12,000
Table 1 financial information

Highlight Figures

Salary Honda City 2015 Wedding Expenses Gold Saving

RM6,300 RM35,000 RM7,000 RM12,000

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3.0 Monthly Expenses
January February March April May June July August September October November December
Monthly Expenses
(RM) (RM) (RM) (RM) (RM) (RM) (RM) (RM) (RM) (RM) (RM) (RM)
Rent 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Car Instalment 700 700 700 700 700 700 700 700 700 700 700 700
Car Insurance 300 300 300 300 300 300 300 300 300 300 300 300
Car Road Tax
890
Renewal
Motorcycle Road Tax
350
Renewal
Fuel, Parking And
400 400 400 400 400 400 400 400 400 400 400 400
Toll
Wedding Expenses 7,000
Unifi TM 136 136 136 136 136 136 136 136 136 136 136 136
TNB 100 100 100 100 100 100 100 100 100 100 100 100
Syabas 75 75 75 75 75 75 75 75 75 75 75 75
Groceries 200 200 200 200 200 200 200 200 200 200 200 200
Parent's Allowance 500 500 500 500 500 500 500 500 500 500 500 500
Donations 100 100 100 100 100 100 100 100 100 100 100 100
Premium Insurance 150 150 150 150 150 150 150 150 150 150 150 150
Vacation 700
Dinning 300 300 300 300 300 300 300 300 300 300 300 300
EPF Contribution 495 495 495 495 495 495 495 495 495 495 495 495
Income Tax 378 378 378 378 378 378 378 378 378 378 378 378
Zakat Fitrah 63
Monthly Total 4,834 4,834 5,184 4,834 4,897 11,834 6,424 4,834 4,834 4,834 4,834 4,834
Expenses
Table 2 monthly expenses

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4.0 Balance Sheet Statement
Balance sheet as at 31 December 2022
Assets RM RM Liabilities RM RM
Liquid Assets Current Liabilities
Cash In Hand 500 non -
Balance In CIMB Bank Saving Account 15,300 Total Current Liabilities -
Total Liquid Assets 15,800
Long-term Liabilities
Lifestyle Assets Car loan outstanding balance 28,000
iPhone 11 1,600 Total Long-term Liabilities 28,000
Car 35,000
Motorcycle 10,500
Household Item 23,000
Clothing 1,200
Total Lifestyle Assets 71,300

Investment Assets
Balance In Tabung Haji 12,000
Balance In EPF Account 50,000
Public Gold Saving Account 12,000
Total Investment Assets 74,000 Total Liabilities 28,000
Net Worth 133,100
Total Assets 161,100 Total Liabilities and Net Worth 161,100
Table 3 balance sheet statement

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5.0 Cash Flow Statement
CASH FLOW AS AT 31 DECEMBER 2022
ITEM RM RM RM
INCOME
SALARY (6,300 X 12 MONTHS) 75,600
INSURANCE CLAIM 1,000
BONUS 18,900
TOTAL INCOME 95,500

EXPENSES
RENT (1,000 X 12) 12,000
CAR INSTALMENT (700 X 12) 8,400
CAR INSURANCE (300 X 12) 3,600
CAR ROAD TAX 890
MOTORCYCLE 350
FUEL, PARKING AND TOLL (400 X 12) 4,800
WEDDING EXPENSES (ATTIRE, DOWRY, AND NIKAH CEREMONY) 7,000
UNIFI TM (136 X 12) 1,632
TNB (100 X 12) 1,200
SYABAS (75 X 12) 900
GROCERIES (200 X 12) 2,400
PARENT ALLOWANCE (500 X 12) 6,000
DONATIONS (100 X 12) 1,200
PREMIUM INSURANCE (150 X 12) 1,800
VACATION 700
DINNING (300 X 12) 3,600
EPF CONTRIBUTION (495 X 12) 5,940
INCOME TAX (378 X 12) 4,536
ZAKAT FITRAH 63
TOTAL EXPENSES 67,011

SURPLUS 28,489
Table 4 cash flow statement

TOTAL TOTAL
SURPLUS:
INCOME: EXPENSES:
RM28,489
RM95,500 RM67,011

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6.0 Ratio
Liquidity Ratio

1. Liquid Asset to take home pay = Liquid Asset/ Take Home Pay

= 15,800/ (75,600 – 4,536 – 5,940)

= 15,800/ 65,124

= 0.243

= 24.3% @ 2.91 months @ 3 months

Quite good because almost liquid enough since the ratio is between 3 to 6 months of take-
home pay or less than 25%

2. Current Ratio = Liquid Asset/ Current Liabilities

Not valid because Mr. Ruzaini didn’t have any short-term liabilities

3. Debt Ratio = Total Liabilities/ Total Assets

= 28,000/ 161,100

= 0.1738 @ 17.38%

Mr. Ruzaini debt ratio is very good because it is below 40%. He is good at managing his debt.

4. Debt Service Coverage Ratio = Take Home Pay/ Total loan monthly payment

= 65,124/ 8,400

= RM7.75

Mr. Ruzaini earns RM7.75 for every RM1.00 debt repayment obligations. The higher the better
because it shows the ability to pay the loan.

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7.0 Comments and Advice on Family’s Financial Situation

Based on Mr. Ruzaini financial information above, I can conclude that he has a stable financial
because of it has surplus figure of cash flows. According to balance sheet, total assets is higher
compared to its total liability.

I would suggest Mr. Ruzaini continue to make a lot of investment or add another investment
instrument. This can make him to raise more money and savings. The investment money received will
be used for emergency purpose. He can continue back to make deposit in his ASB Account consistently
in the near future. The dividend received for the end of period would be a little help for his financial
and can be an additional income that can be used for less important expenses later.

Besides that, with the current situation of expecting his first child to be add in the family
member for the next couple of months, I would suggest him to make an applications of credit card in
his current preferred bank account. This is because, with the help of additional credit card, it would
help a little for the preparations of the arrival of their first child born such as hospitality bills, medicals
bills, baby stuffs, furniture, necessities, diapers and clothing for the baby, stroller, and cribs. All this
type of expenses will be a one-time expense happens when delivering baby in Malaysia. With the
current financial, adding this type of current liability would be best financial tools for Mr. Ruzaini. By
taking factor of his current ratio, liquid ratio, debt service coverage ratio and his monthly income from
his work, the bank would be confident to approve his application as Mr. Ruzaini would not be facing
any difficulties to pay his debt back.

Furthermore, Mr. Ruzaini need to make a preparation for the post-action of delivering baby
process by lowering his expenses in all aspect for future precautions and keep continued paying his
monthly payment such as the insurance premium for unwanted incident to be happened and
donations as somethings that can be a benefit to the society back. He can start tracking back spending
habits and eliminates all the expenses that are less important.

In conclusion, Mr. Ruzaini owning a healthy financial situation by having a great number of
salary and very discipline and balance of expenses and paying debt off. By acquiring a credit card or
instructing a short-term loan type, it would be the best option as a preparation for the future.

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