1.3 Setting Financial Goals Using the SMART Model

Foreword by the Malaysian Financial Planning Council

I would like to congratulate Dr Joyce Nga and Scola Books for publishing Personal Financial Planning: A Comprehensive Guide to Personal Financial Planning in Malaysia. They have identified this essential need in society, especially as the Covid-19 pandemic has made individuals and businesses focus more on having higher saving thresholds. No matter the season or financial climate, businesses and individuals must remain defensively positioned with their personal finances. In order to attain this, the 6-Step financial planning process as highlighted in page 4 of this book should be used as a guiding force in the attainment of a state of financial well-being.

In Chapter 2, the book highlights the need for an individual to have passive income streams in their personal financial quest. Importantly, from my view in money management, one must be able to optimise their current savings to improve their financial state. Thus, the importance of understanding financial ratios, time value of money and future value, all of which and many more concepts are covered in detail in this book.

Further chapters in this book highlight debt and tax management, investments, as well as estate planning, among other important subjects. It provides readers with a holistic view of all necessary personal financial knowledge. The book also highlights the right financial professionals to seek advice from, to help minimise the risk of getting bad advice.

On behalf of the Malaysian Financial Planning Council (MFPC), I find this wellplanned and produced book an essential reading material that will appeal to Malaysians of all walks of life.

MFPC is supportive of the efforts by Scola Books and look forward to future cooperation to further our mission of financial planning human capital development.

Dr Desmond Chong

Adjunct Professor, Deputy President, Chairman Certification & CPD Board (CCB) Malaysian Financial Planning Council

Foreword

It is not how much money you earn, but how you manage it and what you do with it in your lifetime that determines how well you will live your life. Dr Joyce Nga has successfully turned this very serious yet important subject into one that is easy to read and understand with relevant examples and case studies in her book.

As you go through each topic, you will gain insight into what is important and how each aspect of your personal finance links to one another. Dr Joyce has successfully compiled 240 hours of technical financial planning lessons into this precise and concise book.

So how should it be used? It can be an introductory reference material for those who wish to embark on the journey into the financial planning profession. Alternatively, for the general reader who wants to try to DIY the basics of their personal finances, this book will help get you started. However, a word of caution for those who are not so numerically inclined: you may want to consult a Licensed Financial Planner instead as they can help you crunch the numbers and analyse your financial situation so that you can understand where you stand financially, and how to proceed from there to achieve your financial life goals.

I also hope this book will inspire readers to consider pursuing a career in the financial planning profession, as it is a sunrise industry. With an estimated 60% of Malaysia’s population potentially requiring some form of financial planning and advice, we definitely need to grow the current pool of Licensed Financial Planners. I certainly applaud the efforts of Dr Joyce Nga for her contribution towards better financial literacy for youths through this book.

Linnet Lee

CFP CERT TM, IFP® Chief Executive Officer Financial Planning Association of Malaysia