Talk On Benefits Of Financial Planning
By Yusrin Junaidi

Bandar Seri Begawan - Procrastination, excessive spending or having no idea about it are some of the reasons why people fail in financial planning, said Sajan Raman, General Manager of AIA Co Ltd.

Having an appropriate financial plan shouldn't be difficult if an individual seeks help from a financial planner, he said, to analyse the current financial health and give advice on financial matters.

He spoke during a financial planning and investment talk organised recently by the Action Team of AIA Co Ltd and attended by nearly 100 invited guests.

AIA has qualified financial planners who can help a person who wants to create a financial plan based on needs and objectives, he said.

Financial planners help to avoid costly mistakes, manage risk, save time and improve investment results. Financial planning consists of risk management, cash management, debt management and wealth management.

Risk management protects, against death, disability and sickness. The individual is ready with some money to leave to the family in case of death; money for living expenses in case of permanent disability; and reserve money for medical treatment in case of sickness, he said.

On cash management, he advised on spending moderately, and saving. Creating an emergency fund is also important for standby money. The idea is to make sure to have enough money to spare every month to pay for necessities and for unexpected expenses, like bills for car breakdown, medical bills, and standby money for funerals, he said.

On debt management, he advised the public to try reducing debts or eliminating unnecessary debts.

Excessive spending, especially by using credit cards, is dangerous because the inability to repay the debt over a long term will make the individual suffer by paying high interest charges. This can lead to a financial burden over the long term.

On wealth management, he explained the advantages of saving early and why people need to invest to increase their wealth. It is also very important to choose which investment people go for and get guidelines on how to invest safely and profitably.

By understanding the concepts of investment and how investment works, an individual can get a clear picture and adopt the investment plan as part of financial planning.

The seminar ended with a question and answer session. Some guests said they now know how to manage their money through financial planning.

Dyg Hayaty binti Hj Bujang, Senior Insurance Planner of AIA Co Ltd, said "this seminar is held because it is part of our duty as financial planners to educate Bruneians on the importance of financial planning. It is hoped that this seminar can create awareness on early financial planning so that Bruneians will be mentally and financially prepared in the future". -- Courtesy of Borneo Bulletin

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