F.LO.W. Understanding

F.L.O.W (Financial Lifestyle Organised Well) – Why is there a need for F.L.O.W?
– There is no such thing as an “iron rice bowl” anymore. – (Lifetime Employment)
– Private or Government Pension plans are insufficient.  – CPF: Central Provident Fund, Singapore; EPF: Employment   Provident Fund, Malaysia; Superannuation – Australia and etc
– Education costs have been and will still be rising every year. More parents are aspiring to send their children to elite schools – local or overseas – for the best education that they can provide their children.
– Medical costs will continue to increase as better medical equipment, facilities and treatments are made available in the healthcare system.

Disruptions and Diversions
Disruptions and diversions can happen anytime unless your time line is organised well. A poorly managed time line may render you serious troubles like:
– Divorce
– Displacement/Retrenchment
– Disability
– Dreaded Disease
– Debt
Unless your time line is well-organised, your future asset position can never be higher than your current asset position. As a result, your future will definitely be compromised. How can you ensure that your future asset position stays promising and the journey towards achieving lifetime success remains efficient and effective?

5 Golden Rules for Establishing Your Financial Plan

In any game you play, there are rules to be followed. If you violate these rules, you will be penalized. The same is true in financial planning. If you break any rule, you may have to pay dearly – in some instances, you may suffer financial loss and in other worst cases, it may even be bankruptcy!
In playing the financial game, there are 5 Golden Rules in which you have to observe:

  1. Have a specific plan
  2. Identify my current resources
  3. Have a reliable strategic financial coach and mentor
  4.  Conduct a bi-annual periodic review
  5.  Structure my IGAs

The model above is well-designed. It will take time to establish your financial model effectively, strategically and successfully. Pay attention to the 5 Golden Rules and do not compromise on your time line.

Remember F.L.O.W, and to ensure a well-organised financial lifestyle for yourself or this may lead to the disruption of your financial plan, causing you to deviate to paths you did not intend to take.
The journey from Start-Point to Mid-Point focuses mainly on “Man @ Work”. During this phase, you are to stay focused on developing IGA (Income Generating Asset)
When you have reached the Mid-Point, your “Man @ Work” should be replaced by “Money @ Work”. Once you have enough IGAs, you are then able to move from “Man @ Work” to “Money @ Work”, which enables you to have a sufficient income stream generated through your capital rather than your work. Are you at the position in which your capital is generating enough income for you to comfortably retire? Establish your journey of moving from “Man @ Work” to “Money @ Work” – let us conduct a Cash Need Analysis.

Cash Need Analysis

What is ‘Cash Need Analysis’? It is a process to determine your current cash position and the cash needs of your family in the event of unforeseen circumstances like:

– Death
– Disability
– Long Term Medical Care
– Retirement
– Parent Medical Care
– Divorce
– Retrenchment

I always conduct a financial health check every year to review my cash needs position. I believe that the young person I am now is going to take care of the older person I am going to be in the future. If I do not assess my situation now, I will not have a clear and accurate picture of where I am now and where I will be heading later.
At certain reviews, I may be shocked to discover that I have detoured too much from my budgeted plan. If I do not make time to take stock, review and reflect, I may end up with a financial future that I would not like to have. Because of my commitment and discipline to conduct periodic reviews for my financial plan, I am able to align my financial journey, strategies and execution in accordance to my financial goals and dreams.
What about you? Is your money well-employed and well-allocated? If you want to follow the 5 Golden Rules, this is where you can start from. The CNA will provide you a clear overview of your financial wellness in the event that your time line gets disrupted or diverted. Can your current financial resources be able to withstand the time line shock?
In our pursuit to succeed in our wealth accumulation planning, we have to give prudent consideration to our immediate cash needs, as well as providing for contingencies and being able to absorb time line shocks.

“We look at others and envy their financial success; what about you.”


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