i) Identify the steps make financial plans for his wedding

Planning for a Financially Secure Marriage

Posted at July 11, 2011 in Young Adult
Some married people would joke that there are three Rings in marriage the Engagement Ring, the
Wedding Ring and the Suffer-Ring! Ouch! How did that ring ever get onto our finger? Statistics have
shown that one of the root causes of marital problems revolves around money. Just imagine if one
individual cant manage his finances well, what more when you put the two together (along with a few
more juniors!)
Lets Talk
Are you a saver while your spouse is a spender? Coming together from two separate
worlds, we may have our own ideas and feelings about money. We should sit down with
our spouse to discuss how we regard and use money be it how many pairs of shoes
you need to buy to how many packs of cigarettes you smoke per month. Be honest
about all debts and loans, especially if you have any outstanding credit card loans or the
number of Ah Long friends! Being opened with your finances, you can be difficult but
its better to share that information now than face surprises later. Talking about money
early in your marriage may save you a lot of heartache.
Tying the Financial Knot
When we tie the knot, we have to ensure that our own financial knot is not entangled. It
would be wise to be clear on each others roles and responsibilities pertaining to
household finances. For example, who is going to pay the bills, save for childrens
education and pay those monthly loan installments? It is also very important to decide
on the issue of parental allowance as both parties have to agree on giving an acceptable
amount to parents on both sides. Ideally, if both the husband and wife are working, they
should maintain at least 3 accounts My Account, Your Account and Our Account.
This would allow each party to maintain some independence over their personal
purchases while contributing their fair share towards joint expenses. Having a combined
Cash Flow Statement showing His, Her and Our income and expenses, may be a
good idea.
Another area is on the treatment of each others assets and liabilities. If a marriage
starts on a clean sheet of paper, then both of you could still decide later on either in
joint names or in either partys name. However, if the union comes with excess
baggage, then the couple would need to be clear on how to deal with their existing
personal assets and liabilities. Are they going to combine them or treat them separately
as their own responsibilities? Very often, couples tend to carry over their liabilities into
their marriage and that may be the bone of contention later on in their married life.
Having a combined Net Worth Statement showing His, Her and Our assets and
liabilities, may prevent any arguments.
Peace of Mind
Another very important area that should be looked into is Life Insurance. It would almost
be a necessity to have sufficient coverage when we get married and start a family. This
is because we are no longer living for ourselves anymore but also for our loved ones. Are
we to leave our spouse and children in dire financial distress should something
unfortunate happen to us? Life Insurance ensures that our dependents can pick up the
pieces and carry on living with some measure of financial comfort. They need not worry
about where the money coming from or whether they would still have a roof over their
heads.
For those who already have some life insurances, it is advisable to review your benefits.
You may need to drop some coverage if your spouses plan covers the family or perhaps
enhance them to include your family. It is also advisable to update your beneficiaries if
necessary. Ultimately, we want to optimize our benefits to be able to walk down the aisle
with peace of mind.
Plan Your Financial Future Together
After reviewing what you have and expressing your feelings about money, you can now
start planning your financial future together, which in essence is planning your life
together as husband and wife. The other area may be your love nest. Where is it going
to be? When is it going to be? Will it be landed or a space in the air? If landed, will it
be single or double-storey or perhaps a semi-D or your very own bungalow? Property
cost may be the single largest family expense and both of you have to manage your
expectations.
The second thing may be children. Those bundles of joy may need bundles of cash too!
Its not too far-fetched to say that we may need as much as One Million Ringgit to raise
a child in the future as a big chunk of it goes towards their education. Therefore, if the
both of you decide to have a football team, then youll really need to sit down and start
planning!
Last but not least, one of you may decide to quit job after marriage to concentrate on
building a family. Thats not a bad idea but this topic should be discussed as early as
possible to better prepare yourselves. Both of you have to agree on whos going to be
the Finance Minister and whos going to be the Home Minister. It may be gradual
(like going from full-time to part-time) or it may be immediate but the decision should
not give raise to financial predicament.
Living Happily Ever After
Marriage is just not a word; its a sentence a life sentence! As you enter into this new
stage of life, remember to review your finances together regularly as both of you will be
taking a long journey together as man and wife. While Love is important, Money is a
necessary ingredient towards a blissful marriage. So, start Planning for a Financially
Secure Marriage so that we too, may one day have a fairytale ending: and they Lived
Happily Ever After!



ii) Steps in making a personal loan CIMB Bank
CASH PLUS PERSONAL LOAN

*Features
Unsecured term loan for personal use. A hassle free personal loan to fulfill your dream.
No Collaterals, no guarantor and flexible repayment tenure up to 5 years.

Collaterals
NIL
Loan Margin
Up to 8x of gross income
Loan Amount
Min : RM 2,000
Max : RM 100,000*
* Subject to maximum 8x of gross income whichever is lower
* Subject to overall debt commitments and credit risk assessment.
Loan Tenure
Minimum 1 year
Maximum 5 years


























Here are the product disclosure sheet and instalment table :









*Requirements
Eligibility:


Individual applicant only

Aged between 21 and 60 years upon application
Minimum income RM2,000(basic + fixed income only)

Income Documents
Under Employment:


Application Form

Photocopy of MyKad
Latest 3 months salary slips
Latest 3 months Salary-Crediting Account / latest EPF statements / latest EA Form /
latest BE Form and tax receipt

Self Employed:
Application Form
Photocopy of MyKad
Business Registration Form (Form 9, 24 ,49, MA)
Latest 6 months Business Bank Statements
Latest B form with proof of tax payment receipt/ latest Profit & Loss and Balance
Sheet statements
Latest 6 months of commission statements and bank statements for commission
earner (example: Insurance Agent, Real estate agent and etc)


Individual applicant only
Aged between 21 and 60 years upon application
Minimum income RM2,000(basic + fixed income only)











*Profit Rates
Loan Amount (RM)
Effective Lending Rate
(Fixed rate, reducing balance, daily rest)
Equivalent to fixed rate
(Subject to customer remains until end of tenure)
50k-100 12.32% 6.88%
25k-49 17.11% 9.88%
2k-24 22.39% 13.38%







































*Fees & Charges
Products/Items

Charges

1 Stamp Duty 0.5% from the loan amount
2 Insurance Compulsory (Depending on entry age and loan tenure)








































iii) Budget Planning

Adam and Aida have been going out for quite a while now. Adam had already cleared all
his professional exams and is already a Chartered Accountant while Aida is currently the
Team Leader at her bank. They are doing pretty well with their career and are
contemplating moving into the next stage of their lives as husband and wife. Read on
to see how they now have to work out their finances prudently not merely on their own
but jointly.
Adam was walking past a jewelry shop and he stopped to check out the diamond ring he
has been eying for the past few weeks. He felt it was about time for them to settle down
though realizing that the marriage expenses involved can be pretty substantial. Actually,
he was waiting for his bonus but so happened on that day, there was a special sale.
Being a little kiasu, he didnt want to miss this opportunity and thought now is the time
to grab it. Decisively confident that bonus is due within a months time, he figured that
he could very well charge it to his credit card first and by the time the payment is due,
his bonus would have come in. With an irresistible sale gift of a candlelight dinner
voucher for two at a posh hotel, he decided to go for it. Charge it! he exclaimed. The
damage done - RM4, 000 and that was after a good discount ! This was his single largest
purchase via his credit card but hey, its only once in a lifetime, right?
Adam was well aware of the responsibility that comes with owning a credit card and he
has been very disciplined by paying off his credit card bills in full every month. As a rule
of thumb, we should never swipe the card if we cannot pay for it in cash. A credit card
merely acts as a payment instrument that usually comes with reward points or some
other incentives - it is to be utilized as a transitional substitute for cash but not as hard
cash! Always discipline yourself to pay in full on due dates after charging your credit
card(s) or else be prepared for penalties and finance charges of more than 18% p.a. If
we have a tendency of not paying in full but still want the convenience of cashless
purchases, move on to a debit card for a better alternative. A debit card is almost similar
to an ATM card whereby the amount spent will be immediately deducted via on-line basis
direct from your bank account. In other words, you would only be spending up to your
own savings amount.
With a diamond ring in hand together with a candlelight dinner voucher thrown in,
whats missing for a romantic ambiance was the bouquet of roses. Adam planned a
surprise moment for Aida, so on the pretext of celebrating his promotion, he invited Aida
out for a dinner. As they were about to finish their dinner, Adam graciously presented
Aida with the bouquet of roses leaving her amazed but pretentiously puzzled hoping for
more dramatic action for a heavenly reunion. On bended knees, Adam with the symbolic
diamond ring in hand, blushingly proposed to take Aida as her life partner and she
accepted immediately with a loving smile and gestures.
Dr. Joyce Brothers said, Marriage is not just spiritual communion and passionate
embraces; marriage is also three meals a day, sharing the workload and remembering to
carry out the thrash.If we think that owning a car is a big commitment, marriage is
even a bigger commitment and should be entered into only if you feel capable of
handling the responsibilities. With the romance comes the real issue, including managing
finances mutually and harmoniously.
Be realistic about your wedding plans based on your budget and do not try to live up to
the expectations of other people, including your prospective spouse. Like in other
aspects of your life, have a wedding budget. Aligned to your needs and wants - and most
importantly, discuss with your spouse-to-be on how much money both of you can
comfortably afford. Though it may be a once in a lifetime auspicious event, but it may
end up taking up your lifetime earnings to pay off all your wedding debts.
Adam and Aida sat down together to talk about their expectations of the whole wedding
ceremony and decided to work out their following wedding budget:
NO. ITEMS BUDGET ACTUAL
1 Wedding Dinner (500 guests@ RM60) 30,000
2 Wedding RIngs 6,000
3 Wedding Photos 3,000
4 Wedding Gown & Suit 4,000
5 Gifts 3,000
6 Honeymoon (Within Asia) 4,000
7 Other "surprises" 5,000

TOTAL 55,000

From the above budget, they now have a better idea of how much they roughly need for
their wedding arrangements. They believe that the gifts from their guests (normally in
cash) would be able to cover a major portion of the dinner costs. Adam has also
accounted for a 10 % under the item called Other surprises to cater for any other
incidental and unforeseen expenses like costume jewelry, facial, hairdo, etc commonly
applicable to any weddings. Its only prudent that we allocate such an amount for such
contingencies.
A common legendary French proverb quoted Love makes passion, but money makes
marriage. As much as we hate to admit it, money will somehow affect our relationship
with each other. For couples intending to tie the knot, it is best to be very clear where
we stand pertaining to our expectations of marriage. Otherwise, you may end up getting
entangled with all the money issues which might eventually strangle the love you have
for each other.