It was shocking news from Bank Negara Malaysia survey findings to know that most of the Malaysian is struggling to survive in their daily lives. The survey which was done in 2015 and the findings shows that 94% of respondents in Malaysia are not able to meet their financial obligations for at least six months if they were to lost their job and income. The findings shows that 75% of the Malaysian are unable to raise RM1,000 cash in cases of emergency. The findings also show that only 60% of Malaysians were not financially ready for retirement. Things were make worse when the Malaysian economic situation is not stable and lot of uncertainties. Price of goods has increased tremendously. A number of small businesses has also closed down due to high operational costs and reducing amount of profitability.
This is where the importance of personal financial planning comes into place. Personal finance is an individual fund or money management. It started when a person uses the money to pay for their expenses. It is also a matter of how the money is used for savings and investment purposes in order to increase their wealth or returns. In the midst of increasing their wealth, a person should be aware of all the financial challenges and difficulties that they are going to face in future