Personal financial well-being in view of worker's involvement in comprehensive financial planning

Even with regular incomes, without careful financial planning, unexpected financial instability might occur. This study focused on the extent of comprehensive financial planning performed by public sector workers. The likelihood of financially well individuals and those following the financial planning steps to involve in comprehensive financial planning were determined. Eight ministries were selected randomly based on a list of ministries situated in Putra Jaya, Federal Territory. Self-administered questionnaires were distributed through liaison officers in those ministries resulting in 310 completed questionnaires. Data gathered were on socioeconomic characteristics, financial well-being, financial planning process, financial knowledge and financial planning components. Binomial logistic regression revealed that job category (exp(B)=0.280; p=0.007), marital status (exp(B)=0.352; p=0.022) and household income (exp(B)=0.401; p=0.027) predicted the likelihood to involve in comprehensive financial planning. Support staff, unmarried and those with low household income were more likely to financial planned comprehensively. Good financial well-being (exp(B)=1.027; p=0.005) predicted the likelihood to involve highly in comprehensive financial planning as opposed to doing financial planning process (exp(B)=0.295; p=0.0001). Fitness of the model was justified and the Nagelkerke R2 was 0.342 with the model being moderately correctly classified. The results suggest that performing incomprehensive financial planning may lead to financial instability.

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