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Anthony and Hannah are young married couple who got married nine years ago. Both of them are 32 years old and have three children, who

  1. Anthony and Hannah are young married couple who got married nine years ago. Both of them are 32 years old and have three children, who are two, five and seven years old. Ever since they were married, Hannah has been a homemaker taking care of the children. Anthony works as Finance Senior Executive earning RM5,500 per month. Hannah recently started doing business selling clothes that makes around RM1,750 per month. They are currently working and residing in Kuala Lumpur, Malaysia.

  2. Now that Hannah is also earning income, they hope to use her income to accumulate enough savings to buy a new car for Hannah, because her existing car is very old and constantly needs repairs. The old car is worth RM9,000 and can be traded in for a new car. Hannah would really like to purchase a new car within this and she has been saving RM500 per month until she has accumulated savings of RM6,000 in her saving account to use for a down payment in additional to the trade-in old car value. She’s eyeing to purchase a Perodua Ativa for a price of RM62,500. The estimated auto loan for her desired car is RM684 per month for a 7 year loan tenure at 3% interest rate. Meanwhile, Anthony owns a Toyota Vios which is valued at RM73,000 and he is still paying RM480 per month on auto loan for another year.

They also dream to own a house. They plan to have about RM20,000 as a down payment within the next five years. They are undecided whether to save some amount every month or invest some money so that they will earn RM20,000 in five years. Anthony and Hannah are also concerned for their children’s college education in the future. They plan to set aside RM100 per child every month in the fixed deposit account for the next 10 years. However, these savings plan would depend on the monthly budget.

They realize that the first step toward achieving their financial goals is to create a budget capturing their monthly cash inflows and outflows. Anthony and Hannah’s combined disposable (after-tax and EPF contribution) income is now RM6,400 per month.


Reviewing their bank statement from last month, Anthony and Hannah identify the following monthly household payments:

RM1,100 for house rental

RM198 for home Internet subscription

RM200 for electricity and water

RM160 for mobile phone expenses

RM800 for groceries

RM480 auto loan

RM500 for car expenses (fuel, toll and maintenance)

RM150 for medical insurance

RM130 for education loan

They also review several credit card bills to estimate their other typical monthly expenses:

About RM300 for clothing

About RM200 for school expenses

About RM900 for recreation and programs for the children

About RM200 for dining out

To determine their net worth, they also assess their assets and liabilities, which include the following (in addition to the items listed above):

Hannah’s accumulated savings for a new car is now RM2,500

Balance in their current account about RM2,000

Home stereo system valued at RM3,000

Furniture worth about RM3,000

Gold saving investment worth about RM2,130

Personal laptop with a resale value of RM2,000

55” smart television worth RM1,700

Outstanding balance in their credit card is RM3,300

Remaining balance of Anthony education loan is RM5,500


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Summarize the current financial position, the short-term, intermediate and long-term goals and plans to achieve the goals for Anthony’s family. 

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