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.

[uls]

ideally, we wanna die before we run out of money.

Thing is, most people run out of money before they die. It's either they didnt save enough money... or they didnt save any money.

People are living too long hehehe

If u retire at 60, and ur gonna live to 80 or 90, thats 20-30 years of life to sustain. How the hell do u sustain 20-30 years of life if u cant work anymore?

u gotta having something that pays u money without u having to go to work coz u cant work anymore.

I think pinoys call that CHILDREN. hehehe

----------------------------------------------------

Man, u better have savings... a LOT of savings.

Ya sure, we can count on social security.

But i wouldnt. social security funds can run out. Or the funds can be mismanaged. or stolen by corrupt people.

U gotta have an ATM in ur living room.

waaaaa.... hirap maging tao

[ghosthunter]

to be financially sound, dapat kaya mo tanggapin malugi o negative.

or else, you'll live a life of paranoia. gusto mo oversupply parati para lang mabuhay ng soundly. although I dont even consider that soundly kasi nga paranoia talaga nagpapatakbo sayo

OB, is that a life lesson from you?

[n2knee]

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.) NO. the bank owns my house. i am still paying mortgage on it.
2.) YES. my cars are paid off
3.) NO. i don't have physical assets inside my house that cost almost $500k dollars
4.) NO. i don't have two mil sitting in the bank
5.) YES.
6.) YES.

so i answred NO to half of it. does it make me not financially well off? sino namang mokong ang gumawa ng standards na iyan?

[1D4LV]

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. i have one, although it is still mortgaged.
2. we have two. both are fully paid.
3. we have, but i don't know if it is almost half the cost of my house. medyo minimalistic ang theme namin sa house, dahil maliit lang.
4. wala.
5. meron.
6. meron.

pero i still do not feel that i am financially sound.

[vindiesel]

Originally Posted by 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?

================================================== =======
1. yes, fully paid
2. yes, 7 months to go, tapos na ang bayaran
3. no. i feel like i dont need that much. meron kami, yong feel namin importante.
4. no.
5. yes
6. yes, as long na nakakapagtrabaho pa ako.

No. I am not financially sound. Idagdag mo pa dyan ang expenses sa education ng mga anak mo.

in my opinion financially stable ka lang siguro if you can sustain your status in life kahit di ka magtrabaho for 20 years...considering that you retired at the age of 60. may nagtatanong, at what age daw dapat magiging financially stable. well it depends, if you save early and religiously plus meron mga investments, you may retire early. meron namang tao, mamamatay lang wala pang savings. meron din na huli na nagsimula magsave.
the thing is kahit marami kang pera kung di ka marunong humawak o you live above your means, mauubos yan.

[chilli]

1. Own your own house - I'm planning this year.
2. Own a vehicle - Yes I do but Im not fond of driving it because of traffic and parking space
3. Have physical assets in your house which is at most half the cost of your house. - this things, I don't think I am going to buy one even if I can afford it for example. I am just practical to save it to the bank than buy this stuff where I know it will not be the same price like on the day i bought it.
4. Have minimum savings equivalent to twice the cost of your house. - hmm, I dont have this saving yet, but I have enough savings in my bank account.
5. Savings should be diversified. At least 50% should be liquid.
6. Of course a steady stream of should be there to take care of usual expenses.


But I can still say I am financially sound, the fact I am able to send 3 of my brother's children to private school. For me, it means I am Financially sound.