About 30 staff and full-time students of WOU were given pointers on financial planning to achieve financial freedom and build up savings.
Loh Pei Luan, Associate from Amanah Saham Nasional Berhad (ASNB) Penang, was speaking on ‘Personal Financial Planning’ at a public talk organised by WOU’s School of Business & Administration (SBA) at the main campus on July 29th.
She warned that financial deficits can lead to borrowing/debt, reduced living standards, increased use of credit card, stress, and ultimately bankruptcy. Knowing to differentiate between needs and wants will help control debts, she added.
She cited that common mistakes in financial planning are failure to set targets/goals and ways to achieve them; lacking discipline to save systematically; inadequate insurance coverage; refusal to use certified financial advisors; and failure to deal with inflation.
Loh provided seven steps to achieve financial freedom. “First, know your current financial position, your assets (e.g. house, property, savings), liabilities (e.g. car loan balance, credit card loans), and net cash flow (take-home income minus expenditure e.g. loan instalments, petrol, toll, food, housing).”