Studying Hard vs Financial Planning

I recently had a conversation with a university friend whom I hadn't met in 25 years. During our conversation, my friend, who has two children, mentioned an intriguing question asked by one of their children: "Why should we study so hard when the government approves a minimum wage starting at RM 1,500 per month?" My friend was stunned by this question, and I couldn't help but smile. Determining Your Future Salary The real question to ask is, "How much will be your last drawn salary if you start with RM 1,500 per month now?" Let's assume you begin working at age 20 and plan to retire at age 60, giving you 40 years of working life. For the sake of simplicity, we'll assume a permanent annual salary increase of 4%. The answer is that your last drawn salary upon retirement at age 60 will be RM 7,201.50 per month! In contrast, considering an article that suggests a fresh graduate's starting salary will be RM 2,500, and assuming a permanent increase of

Back-to-School Month: The Importance of Financial Planning


It's back-to-school month and time to spend extra on new books, school bags, stationery, clothes, shoes, and more. But if you're not careful, this annual shopping spree can leave your wallet feeling like it's flunked out of school. Fear not, parents! Here are some tips to help you avoid overspending and ace your financial planning game.

Tips No. 1

First, set a budget and stick to it. This doesn't mean you have to skimp on everything, but it does mean that you should prioritize what you need versus what you want. Assess what you already have and determine what you need to purchase. And don't forget to look for back-to-school sales and discounts on bulk purchases.

Tips No. 2

Next, get creative and reuse or repurpose items from the previous year. Maybe that backpack could use a few patches or that lunchbox just needs a thorough cleaning. Get your kids involved in the process and make it a fun activity. Who knows, they might come up with some unique designs or ideas.


Finally, differentiate between wants and needs. Do your kids really need that designer outfit or those expensive sneakers? Probably not. Instead, focus on buying quality items that will last and get the job done.

Reality check

Now, the moment of truth: how did you fare this back-to-school season? Did you stick to your budget or end up overspending? Share your experience in the comments below and let's commiserate or celebrate together. And remember, financial planning is a skill that takes time and practice, but with some discipline and creativity, you can pass this test with flying colors.


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