Good Habits of Financial Planning

Good Habits of Financial Planning

Kenney Khew CFP CERT TM, is a chairman of FPAM JOHOR CHAPTER and also licensed financial planner of Phillip Wealth Planners Sdn Bhd. He can be contacted at Please log on to to learn various aspects of financial planning during MCO period

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As the famous motivation saying, “Motivation keep you going but discipline keep you growing!”, I’d like to share the following habits of financial planning pertaining to the word “DISCIPLINE “:-

D. Delay gratification habit

It is one of the important aspects of financial planning habits that can help you not only to save money, but cut your unnecessary spending by differentiating between Needs and Wants. The amount of money that you have saved can be channeled into long term goals.

I. Investment habit

If you master this habit then you will have an easy life in order to achieve your long term  goals such as retirement fund planning. You will be leveraging the compounding interest effect by regular investment from a younger age say 25 till 55 years old, compared to another person who starts investing about ten years later,  he or she will not enjoy same amount of value at the age of 55.

S. Saving habit

Save first before spending your monthly take home income not only you cultivate a savings habit but it ensures you to have a secure future.

C. Cash flow planning habit

Regardless of what age you are in, whether you are younger or nearing retirement age, this is the most important habit in financial planning. This is simply because you need to forecast your incoming and outgoing cash flows to find out positive cash flow for the period. The setting up of emergency fund falls under this planning too. It is pointless to say that although you’re a high earner, but you are mostly having a negative cash flow.

I. Insurance planning habit

If you know the investment skill but lack protection for your family and yourself against unfortunate events such as accident, death, disablement, illness and etc. that will end up jeopardising your whole financial plan. Thus, learn to transfer risk to insurance company by taking up an insurance plan.

P. Proactive habit

When you have this proactive habit not only about initiatives but you are also responsible for your own choice of action. You will not blame others for your investment loss or missing investment opportunities, claiming not enough compensation and so forth.

L. Long term goal setting up habit

This habit will encourage us to not procrastinate on setting up long term goals by giving reasons of too young or I still have time and etc.

I. Input your financial planning knowledge habit

Sometimes, we may not know everything, so it is good to attend classes, seminars or engage in online classes to learn more about financial planning to increase our knowledge.

N. No to negative people habit

Many people feedback negatively about financial planning solutions due to listening to negative people’s opinions. Therefore, it is essential to only seek financial planning opinions from those whom are qualified to give advice in that area.

E. Execution habit

After we sit down and plan everything, the last crucial step lies with us to execute that plan in pursuit of our goals.

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