Personal financial planning improves standard of living
Posted on May 3, 2011, Tuesday
“Personal financial planning is essential if we want to improve our standard of living, minimise the likelihood of financial disasters, invest optimally, and accumulate sufficient wealth over time,” said Professors of finance, Dr Koh Seng Kee and Dr Fong Wai Mun in their book, “Personal Financial Planning.” Primary goal of financial planning
In this personal finance textbook for Singapore’s undergraduates and MBA students, it also says that the primary goal of financial planning was to help a person to achieve better financial outcomes for oneself and his/her loved ones. Moreover, personal financial planning provided the twin benefits of helping a person accumulate wealth for the future; as well as reducing the likelihood that one will be adversely affected by major financial disasters. In another good book,
‘A Singapore guide to personal financial planning’ edited by Andy Ong, CFP, it stated that developing strategies to improve a person’s standard of living becomes increasingly difficult as the world becomes more complex. Though this statement was made in 1999 when this book was first published, it is still true today, and this also applies to Malaysians today as the Malaysian economy is also influenced by increasingly complex domestic and international factors. Thus being able to anticipate what we hope to achieve financially, give Malaysians an upper hand and higher probability of success compared with just reacting to financial happenings as they unfold. Good examples of major financial events that happened were the financial tsunami of 2008 as well as the Asian Financial Crisis in 1997 that still linger in the mind of many Malaysians. What is personal financial planning?
I have been researching for a good and holistic definition of personal financial...