The Asset Growth Chart- PART 1

Hi there!

I am back and ready to write.

It has been a long gap since i stopped writting and i felt i was missing something all this while since the last time i wrote. I missed writing, and not to mention sharing my knowledges and insight with regards to personal financial planning. While it was tough for me to discover the exact topic but with a little effort and a few of attempts of 'thinking', i finally found what i would prefer to indulge - The Asset Growth!

Yes, i would like to share this subject called The Asset Growth! I always advocate that in each and every family, irrespective of the size and the composition of family members, all of us should have a monthly statement which shows recorded status of family's investment asset and it's growth. Just like a Budget and Expenditure's record of which we are all familiar with, we should also create, record, analyze and monitor our Investment Asset growth. Just how do we do that?

Well, here is one way how we can establish this activity. A family should first of all, initiate a short and long term objectives. Some of the common goals are as below:

Objective No.1: To be financially independant during retirement.

Objective No.2: To have the financial means to support children for higher learning institutions.

Objective No.3: To have money to purchase the property you have dreamt off.

Objective No.4: To have enough money to buy your favourite car.

There are many more objectives you can choose from, as long as it is finance oriented.

Once the goals are in place, the next task is to attach a monetary target to it. Yes! i was talking about in dollar and sen! The rational idea of attaching ringgit sign to the chosen objectives is to ease us with formulating arithmathical workings that will help in deriving to solutions. With monetary targets in sight our achievement can be measured by means of calculation.

Examples of monetary targets are:

Objective 1: To have Rm 2000 every month in today's money during retirement period.

Objective 2: To have Rm 100000 in hand for children's tertiary education cost.

Objective 3: To have a ready cash of Rm 20000 for the down payment of a property.

Objective 4: To have Rm 6000 as deposit to purchase the dream car of yours.

So what next? You have your financial objective and it is in monetary form. The next step is to start doing a bit of calculation to find if the target is achievable or, otherwise!

In order to resume, you must first of all know your household cash flow status and the net asset worth condition. If you already have those, we can resume but i will continue in the next article. If you do not have cash flow and net asset worth statements of your household, i suggest you start one very soon! Until we meet again.....see ya!