Are you Financially Sound?

[DonT]

Have read somewhere that for an individual to be financially sound..you have to:
1. Own your own house
2. Own a vehicle
3. Have physical assets in your house which is at most half the cost of your house.
4. Have minimum savings equivalent to twice the cost of your house.
5. Savings should be diversified. At least 50% should be liquid.
6. Of course a steady stream of income should be there to take care of usual expenses.

What do you say? :question:

[boybi]

You're financially sound if your money is already earning for you. Not the other way around.

[calcite]

Hirap yata magkaroon ng savings that is at least twice the value of your house given the high cost of real estate/houses in the Philippines. Even a small townhouse in metro manila can run in the million so twice that will be twice as many millions in savings.

[DonT]

Let's plug in some figures.

1. House&Lot = 3M
2. Vehicle = 0.5M
3. Assets = 1.5M
4. Savings = 6M
5. Liabilities = 0

In total = 11M....I think its quite reasonable na to say that your Financially Sound if you have this figure.

I tend to agree with it. Kasi what's the use of having a 6M House&Lot , 1.5M Vehicle..tapos 0.5M lang savings. Baka konting emergency lang..mapunta agad sa bank ang mga assets. The key is balance.

[userfriendly]

Have read somewhere that for an individual to be financially sound..you have to:
1. Own your own house
2. Own a vehicle
3. Have physical assets in your house which is at most half the cost of your house.
4. Have minimum savings equivalent to twice the cost of your house.
5. Savings should be diversified. At least 50% should be liquid.
6. Of course a steady stream of income should be there to take care of usual expenses.

What do you say? :question:

1. yes
2. one paid for another still under financing
3. what physical assets?
4. I wish!
5. Need savings before thinking of divesifying. I'm not liquid.
6. I call it a job.

[chua_riwap]

Bro bili ka ng book ni Colayco. Dun mo malalaman mo kung financially sound na isang tao.

[empy]

counted ba kung may mortgage pa yung house? :lol:

minimum savings of twice the cost of your house? you'd have to be not just financially sound, but very wealthy to have that.

also, having 50% of your savings as liquid is not a financially sound idea, because liquid investments (like savings accounts and money market accounts) have relatively poor rates of return. better to have only what you need for a rainy day in a cash/like-cash account, and the rest in more aggressive investments. unless you are talking about having a savings account separately from an investment account - then you should have 100% in liquid instruments.

[Autobeat]

Medyo confusing pa yung #3. Goal ba is to have physical assets in the house more than or less than half of the cost of the house?

[VtEC]

bawal magkasakit yon ang asset ko

[DonT]

Medyo confusing pa yung #3. Goal ba is to have physical assets in the house more than or less than half of the cost of the house?

Sensya na kung confusing sir. I think it only meant na you should not spend on furniture, appliances and household items which in total would be more than half the cost of your house.

Let's say you have a 1.5M Condo. Don't spend more than 750K just for interior designing, furniture, Kitchen stuff, home theatre system, etc. I think most people would not do this. So it should'nt really be much of a problem.

Well, thats my interpretation of it. If I had my way..dapat nga cguro 1/4th lang at di 1/2.