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.

[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.

[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.

[badkuk]

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. agree
2. don't agree; if you don't need a car, why buy one?
3. don't agree; pwede naman siguro iinvest na lang sa mutual funds right? di ka pa mananakawan B)
4. um....nuninuninuninu...
5. agree
6. agree...one that should last you until retirement and when you finally kick the bucket B)

[Galactus]

5. Savings should be diversified. At least 50% should be liquid.

All savings naman are liquid as its easily convertible to cash. Baka naman what you mean are investments (e.g. real estate).

Masyadong mahigpit yung criteria for being financially sound. Sa No. 6 lang ako pumasa, hehehe.

[Red Bureau]

To be financially sound assumes one thing, i.e., you should have the money. The next question would be, 'how do you create that money?' Now that is where the problem arises.

One should know his priorities. Maganda nga yung sinasabi nung mga investment gurus, the money should be the one working for you which only translates to being able to know how you spend the money you earn, how small it might be. For me, the best thing to save is to live below your means. Some even suggest that for every peso earned, you should save and invest 20% of that while you only spend the remaining 80%. It's a hard rule to follow but delayed gratification is the name of the game if you really want to be financially sound and stable.