Places are limited.To register,please email to hijazi.mohd@gmail.com.

Fees: $5/participant

Details:

Much progress has been made over the recent months.Our FMQ Program has been well received by the community at large.Currently,proposals are being done to conduct the FMQ program at mosques and Muslim Malay bodies.All praises to Allah.

We will be conducting a workshop this November.Due to overwhelming interest,we can only cater for 30 participants at most.For details please refer to the Programs & Workshops page.

Also,we have managed to secure an arrangement with FAS to present to the group of footballers for our National Squad.Hopefully,such tie ups will bear good opportunities for our Malay Muslim players to learn and apply sound wealth management.Insya Allah.

Hope to see all of you this coming November event.

Yours truly,

Mohamad Hijazi

Priorities

Amazingly,a majority of us will always find a zillion ways of spending our hard earned money,but we only know of one way to earn that money and that is to work.We are so used to the mantra of spending our money paying for everything else in our lives,but never ourselves first.Let me ask you a question.If you were to imagine yourself being a business entity or corporation,would your immediate concern be about making money for yourself,or making money for other people?Unwittingly,whenever we rush into making sure that our first dollar  goes to bills and installments,we are making ourselves poorer and those services richer.That’s a fact.That has been the priorities programmed in our mind.We are more inclined to pay and spend,than to save and invest.That is why,I highlighted that if you can set a mentality of right priorities,such trivial things will be at the back of your mind.I’m not saying you should not pay your bills and installments till you incur legal responses.What I’m saying is that,have you set provisions for yourself first?Would you want to set provisions for yourself?If so,what have you done and what you like to do?

How much budget is enough?

Interesting question.”How much would you want?”will be my question generating answer.The truth is,that’s the fact?If you were to go to a car dealer,and asked,how much will you need to set aside for a car,the confirmed answer will be,”It depends on what cars you either want or need,sir!”Is that not the case?Financial Planning takes that into consideration.And believe me,from experiences,I’m very much convinced that what you need at the end of the day,will never be realized if you’ve got menial budget to allocate.I’ve seen people,thinking that $100/per month is a big dent on their financial status quo,when as a matter of fact,calculations indicates,he probably needs 4 times that intended amount to even start breathing easy.Thus my take is simply that if one can comfortably set aside a healthy percentage of say 10% – 20% of their salary for their financial planning,they are starting out somewhere.Trust me,budget is more of a mindset than it is a state of financial status quo.

What is inflation?

To understand inflation,you have to grasp the simple concept of supply and demand.Let’s imagine that you and I have five dollars each. We both go to a shop,and find that there is an item that has two in quantity,with each costing five dollars.Now,the very next day,we visit the same shop and find that the item numbers only one in quantity,and the surprising thing is that,it is now six dollars.Both our five dollars is rendered ‘useless’,as we cannot afford to buy the item.Cause now,the demand exceeds the supply.The supply is deemed more valuable than the dollar notes you have.So if you had everybody with only five dollars,that item has just been listed ‘inflated’ by a dollar.Look at it this way…”Too many dollars chasing few items.”That causes inflation.Of course there are many other factors that can result in inflation,but this is just a basic premise for contention.

How does it affects me?

Remember that $100 you had put in a bank years ago?Imagine that during that year,you could have purchased 100 items priced at a dollar each.Imagine 5 years down the road,and inflation has caused that item to be just a little bit more pricey,by a dollar.That same $100 can effectively now only purchase 50 pieces of that same item.You get what I mean?Your dollar value had just decreased substantially by virtue of a simple rise in prices.

Inflation is an upward movement in the average level of prices.

Thus,by that simple analogy,you will see just how drastic inflation can affect your lifestyle.If your job pays you enough to live well now,will that same pay afford to sustain the same lifestyle later?

What can I do then?

Financial planners and advisers almost always,share the mantra and philosophy that in order to beat inflation,your dollar value has to keep up with the steady rate of increase.Firstly,there are some truths in that.However,this author also firmly believes that you can never beat inflation.Reason being is that,you do not know the true value of commodities left in the world.How much oil reserve?How much more gold?How much more land can be farmed and so forth?Because natural resources are the world’s true commodities.You can have the gazillion amounts of money stashed in your bank,but the truth of the matter is that,if that item and commodity is the only remaining left of its kind,you know just how priceless that could be.Just look at Zimbabwe.Inflation rate hitting 1000%.Ridiculous?You bet.But the figure shows the imbalance in perspectives around the world.In Singapore,our inflation rate has hovered around the region of 3% to 6% recently.Quite steady.But it also indicates that,your money has to be on par in value.Thus also,your investment ROI (returns on investments).Very important.Because,you may just find yourself,with $2 in your pocket that could perhaps buy you only a piece of bread in the future.

Truth be told,in the Islamic Syariah compliant based of economy,no one will ever be poor.Amazing but true!After sifting through the various resources and articles, the system being put in place during the Prophet’s pbuh time had ensured that everyone literally was not in need of any aid financially.That is something worth thinking about.In the Islamic’s economic context,wealth is never meant to be accumulated and hoarded.The introduction of Zakah as one of the 5 pillars in Islam,ensures that there is a fair based taxations system in place that ensures that the community at large has its needs taken care of.I was slightly amused and thrilled by the notion of wealth being accumulated with the sole purpose of distribution back to the society,because it contradicts the liberal and conventional financial system being put in place now.Just look at people like Buffet and Gates.Personal wealth in the billions yet,poverty and hunger plague the world.

Qarunism is a term,I coined for these hoarding syndrome where selfishness breeds.

I pledge to serve my better community with more knowledge on the mentioned areas.It’s important.The economic factor has plagued our Malay Muslim community for years thus the lack of social improvements making headway.As they say,sometimes “No Money,No Talk.”How true.

Guess,my opinion is this.The best Wealth Model,after all was practiced by a civilization 14 centuries ago.

The Malay community has at times been hit by the stigma of investments.The sceptics are those who swear on their forefathers that never a single cent of their hard earned money will be invested,not in this lifetime or another.Of course the believers,are rare,so I shall discuss the common misconception people have about investments.

Aeroplane & Car

My manager once gave me the perfect analogy to describe the unfounded hysteria people have about investments.I’ve used this analogy numerous times and it has,if not,proven to be a believable source of fact.I always ask,”Which one is more risky?A trip on the airplane or a trip in the car?”99.9% of the people will answer,”The airplane,obviously.”That is when I ask…”How many times in a year,do you hear of an airplane crash?How many times do you read of car crashes  in a year?”The silence that ensued was definite.The truth is,we always have a natural instinct of assuming that things that we do not do often,are risky.Just like taking the airplane.But as statistics have shown,the risks are substansially higher when you are in a car you are driving yourself.

Investing and Saving

Is that not the case with the way you are planning your finances too?When you keep your regular savings in a bank,you are assuming that there are no risks involved,because it’s called,”savings”.But as I always ask my clients,”What do you think the banks do with your money,to give you the promised rate of return?”*clueless look from clients*My answer,”They invest it for you of course.”How then would you expect any institution to be able to give you the interests?The sad fact is,not many are able to have this switch of perspective.The query of asking people to invest their money are often returned with scornful looks of disapproval.That is why,like pilots,financial planners are trained and educated to navigate you to your financial destination with the right vehicle,which in this case,investments.

FEAR

People fear what they do not understand.Such is the case with investments.It is understandable that most of the financial and investment jargons these days perplexed even the best informed individuals.That is why,the necessity of getting yourself an abled and capable financial planner is crucial in making sure you make the right choices in planning for one.

In my next few entries,I’ll share with you a few tips on how to get yourself started on an investment policy.

When is the best time to start planning your finances?Hmmmm…if I were to rephrase it back to you and ask,”When is the best time to have more money for you?”.Naturally,by default,your heart and head will say,”Now,of course!”But the rejecting prospect in you will say,”Maybe in the future?”

The truth is,I am an advocate of,“Better be too soon,than too late!”.Financial planning is a dynamic process,where you can never actually put a defined time sequence as to when you should do it.Heck,if you were to think of it,the first school pocket money,your Mom gave you had already placed you in that scope of having to plan your finances.My bet is,most of us are already planning our finances in one way or another.

The NOW Factor

I always highlight to my client about the importance of doing some basic planning in place,due to the unexpected nature of tomorrow.I learned this the hard way,when one of my school mate from secondary school,had decided to delay his planning,and I obligingly agreed,thinking that there can be yet another day.Alas,two weeks on from that appointment,my friend passed away as a result of a muscular infection.The tragic realisation that the deceased mother,had depended on his income for sustenance,was now left with nothing but lingering memories,of a dutiful son.And I had failed miserably in my capacity as a friend and financial planner.Therefore I adhere to that simple philosophy.I plan my tomorrow today.

Besides,doing your financial planning at an earlier portion of your life will definitely equip you with the needed headstart in your financial journey.So what is there to lose?

The Umbrella Factor

I like to cite the analogy of an umbrella.Do you get an umbrella,before a rain,during a rain or after the rain?Logically,you may say,”That’s a no brainer.Of course,before!”Well,guess what,people can be idiotic at times.Frankly,some prospects have thrown petty objections such as,”I do not need financial planning!”.But who are they kidding?Do people who have done their planning need it everyday?Do you need your umbrella everyday?But why do you keep an umbrella?Because you know that one day,or someday,rain will fall,without a doubt.That blind faith should also apply in your Life,when you consider three certainties…

• The day you do not work anymore.( Economic Death )
• The day you are not healthy anymore and you fall sick. ( Economic Death )
• The day are no longer around and has passed on. ( Economic and Mortality Death )

So…will you agree with the fact that,somehow,you will need to have an umbrella just in case the rain falls?Question is…will you know when the rain will fall?Unlikely.It’s better to be with the umbrella.