Dear readers, a lot of folks are daunted by the words “financial planning”. This is because most of us might not know where or how to get started. However, let me reassure you that it is not too difficult to get started, as long as we know why, when and how to get started.

[8:48 PM, 12/12/2019] Yuantai Liu (Diploma in Digital Marketing): Let’s get started on our financial planning journey.
First, we need to take stock of where we are right now, in terms of our assets and liabilities.

What are assets and liabilities?
Assets are, simply put, things that generate a positive income, while liabilities are anything that will generate a negative income i.e. take money away from your bank account.

A lot of people confuse assets and liabilities. Why is this so?

For example, if you take out a mortgage on your house or a car loan, is your  house or your car an asset, or a liability?

The answer: if you have a loan, it is a liability. This is because you have to repay loans, both the principle and the capital.

This is also why credit card debts, or any debt, in particular, is bad for our balance sheet.

Now, for today’s exercise, let us sit down and take stock of our current balance sheet.

Before we start any financial planning, we need to have a clear idea of what our current financial health really is.
To help you along, I have painstakingly created a spreadsheet, which you use as a template.

If you would like to read on, go to:

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