[1] Income Management

[2] EPF Table (Malaysian Pension Fund)

[3] Risk Management

[4] Wealth Generation

__Income Management__
The most exhaustive among the big four and is important for your monthly and yearly budgeting plan. It is broken down into Income, Expenses, House Affordability Range and Car Affordability Range. Income is straightforward but do make sure you

**. From here you can estimate how much you earn yearly in gross income, net take home pay as well as total EPF contributions and taxes you are paying.***break your income between taxable and non-taxable*
In expenses I further drill into day-to-day spending, regular lump sums (monthly), regular lump sums (annually) and occasional lump sums (estimates).

**here as this probably the bulk of your life commitments. Towards the very end you will notice a column named "Difference". This is computed based on Net Take Home - Total Expense and***The regular lump sums is the critical part**will conclude if you are overspending hence the need to revisit your "lifestyle".*
Next is the House Affordability Range. The formula is derived using ratio 4 as the standard. This value is universally accepted in many countries as well as historical figures for a house to be termed as "affordable".

Similarly there is a Car Affordability Range. There is no standard ratio. This is simply computed by using how much you can afford (Ideal case) and the downpayment value. For the number of payments, it is best to stick at 60 (5 years).

*Anything longer means you are paying a lot more in terms of interest value.*

__EPF Table (Malaysian Pension Fund)__
The second tab and this is important for your long-term retirement planning; to roughly guess how much you would have at a specific age depending on your current income. You would be able to estimate your yearly gross from the Income Management section earlier. Both average pay rise of 3.00% and EPF estimated returns p.a. at 5.50% are obtained from historical national statistics.

__Risk Management__
Here is where insurance comes into play. Broken into two parts: Summary of Protection and Inflation Adjusted Medical Costs/Dependency Coverage. I will explain the latter first. You will need to key in the inflation rate,

*this rate is the medical inflation rate***. The cost of treating these critical illness is based on Year 2010. I obtain these values from various sources including articles/doctors/medical news and like asking around.***not the usual consumer price index inflation rate*
The Personal Accident coverage simply takes into account how much you earn per year * the duration. The duration that you key in for example might be derived from your family's age. E.g. I need to continue to support my kids for 20 years before they grow up to be able to work for themselves.

__Wealth Generation__
Honestly the most difficult part. It is not ready yet but you get the idea where I am heading; partly thinking of portfolio style.

I will occasionally update the spreadsheet as I tweak it. Expect new revisions to come up from time to time. Any feedback is appreciated and I can be reached via my email. Again it can be obtained from here. https://www.dropbox.com/s/ani7eo357s0szxl/DIY_Financial_Planning.xlsx?dl=0