New Year: Plan For Better Financial Year

Overview
New year has come. It is 2013. Do you achieved your financial goal last year? Have you analyze what went wrong if you did not achieve your financial goal? It is never too late to review back. The best is plan. Plan again. Never stop plan. But do remember plan without execution is nothing. You will just fail. Straight forward. Just like that. You plan, you do not follow, you fail. No argument on that.


Upcoming Expenses
You can plan ahead how much you will spend in 2013. How to do that? It is simple. List down all important expenses that you cannot run away. Example is as below:
1.Car Insurance and Road Tax.
2.Life Insurance Premium.
3.New School Opening Expenses.
4.Hari Raya Expenses.
5.New Born Expenses.
6.Birthday Presents For Children.
7.Anniversary Present.
8.Housing Tax (Cukai Pintu, Cukai Tanah, Indah Water).
9.Bills Expenses.
Check it again whether you missed out anything. You also can check and balance it with your spouse or children or friends-take note:only asking but not to share your details with our friends.

New Year Flow-In Cash
Every year, you will get your bonus. Every year you will expect how much you will earn. But remember to list it down from fix source only. Or at minimum amount of the expected earnings. Otherwise, your plan will be damaged. Same to the expenses, list it down. Example is as below:
1.Yearly bonus.
2.Fix Savings Dividend.
3.Share Dividend.
4.Property Sales Profit.
5.Housing Loan Buffer.

Flash It Clearly
In order to flash it more clearer, and of course to motivate yourself to see how much you will have the buffer (or negative buffer), you must do in detail planning as below. Keep it to yourself. Make it visible to you so that you can see it and never forget. This will also to avoid you to spend unnecessarily to off-focus from creating wealth to adding debt or divert off from spend on NEEDS to spend on WANTS.

Example Of Plan Of Yearly Cash Flow-In vs Cash Flow-Out:

Month       In     Notes     Out          Notes
Jan 13    2000   Bonus    1000    Car Insurance
Feb 13                             200       House Tax
Mar 13
Apr 13
May 13                           2400    Life Insurance
Jun 13
Jul 13     5000  Loan Buffer
Aug 13                           2000        Raya
Sep 13
Oct 13
Nov 13
Dec 13  3000    Bonus    1000      New School
Total      10000               6600
Buffer     3400

From the above table, you can see clearly you actually will be in a POSITIVE cash flow in the coming new year. This is because your expenses is lower than your gain. Plan it, put it in the table, and do not forget to check and balance frequently, every month. Next step is your know that you will have positive buffer to put it extra in savings to gain even more in the next coming year.

Plan precisely and wisely.

Mosha Management
Creative.Different.Trusted.