Part 3:Public Speaking Experience @ Menjana Masa Depan Yang CerahForum @ NKF Kim Keat Road, 15 November 2015.

12/10/2015 01:13:00 am


Assalammualaikum to my dear blogreaders. 

This summary blogpost is the 3rd of 5 for the Menjana Masa Depan Yang Cerah Forum. Keep on looking out for the upcoming blogpost.

Last blogpost I wrote about "Understanding Needs and Wants" and "Financial & Life Plan for different stages of life". In this blogpost, I will be covering about what I shared during my session, "Managing Expenses and Creating Emergency Funds".

Here's the action plan:

1) List down your Life Plan for the next 5years, 10years, 20years etc.

2) Include your Financial Plan into your Life Plan. This Financial Plan is to plan how much you should have by that age. Not only that, include the type of financial instrument that will be used to help achieve your financial goals.

Now you already have your Life Plan and Financial Plan, it's time to go down to the  core, which is how you manage your Income, Expenses and Emergency Savings.

Before sharing how you manage your Income, Expenses and Emergency Savings, I would like to put this across:

Are you in denial? Yes? No?
You should save first, and then spend the balance. 

Proceed on reading tips on managing your Income, Expenses and Emergency Funds.

First ensure that you have set aside at least 10% of your salary for Emergency Savings.

Then list down your Fixed Expenses:
1) Mobile Bill
2) Transport

Next shall be your Variable Expenses:
1) Utilities
2) Groceries
3) Food (Eating out/Lunch out)
4) Medical Expenses
5) Children allowances
6) Handphone bills/Telco bills

Tips: Try to cut down on unnecessary spending.

Here are some of the things you can cut down on: 
  1. Handphone Bill:You can try to minimize usage of watching videos on the go, so as to not over exceed your internet data usage.
  2. Groceries: Try to find cheaper options for the goods you are purchasing. Healthy food does not need to be expensive. List down the food items you plan to buy and plan ahead of your daily meals menu.
  3. Food & Beverage: Cut down on the frequency of eating out or lunching out. Try to cook dinner at home and pack your lunches. This sure saves alot of money.
  4. Transportation: Cut down on using taxi to go to your destination.
  5. Utilities: Switch off lights and fans if you are not in that particular room. Opt for fans instead of air-condition as air conditioner uses more electricity.
Don't forget to give some donations. :)

So, as per the scenario in the figure above, the total Expenditures is $2,690. Mr Ahmad has a surplus of $460.

Emergency Funds are funds where you only use it in case of emergency where you really need money to bail yourself out from financial difficulty. These funds are the ones that you set aside 10% of your income/salary before you spend on expenses.

Emergency Funds (6 months worth of expenses) = $2,690 x 6 = $16,140

Kindly ensure that you have enough Emergency Funds before proceeding on Investments or other kinds of activities which requires funds.

Lookout for my next blogpost where I'll be covering more on "Investments and Estate Planning". Au revoir (Till we meet again.).


Taken during the Forum.

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My objective of creating this page is to reach out to more people, to educate about Islamic Finance and Individual Finance, share tips on financial planning and also be able to answer to everyone's queries. So, feel free to share this page and ask me questions. Let's share the knowledge and practice them together. In syaa Allah. Aamiin.