money Financial Planning

[neville]

Guys i would like you to answer this question:

1. How much is enough? By that i mean how much money do you want to have before you can declare yourself Financially Independent?

2. How close are you in reaching the "enough" stage?

 

Hmmmmm

 

1. PhP 6M in cash. Investments in the stock market at least 10M.

 

My actual target overall value is today's Peso equivalent of $1 M.

 

 

 

2. Malayo pa. Sandali Lang ang 10 years. Baka abutin NG 20. Almost 1M pa Lang ako. 😄😄

 

Kung madaragdagan ang active income sources, iikli ang 20 year timeframe ko.

[JohannBeckham]

1. How much is enough? In my case it's $1.5M. This should give me around $52,500 in dividends base on 3.5% dividend yield.

2. How close are you in reaching this? For me I'm 30% of the way through. I probably need another 7 years to reach this goal.

[JohannBeckham]

Hmmmmm

 

1. PhP 6M in cash. Investments in the stock market at least 10M.

 

My actual target overall value is today's Peso equivalent of $1 M.

 

 

 

2. Malayo pa. Sandali Lang ang 10 years. Baka abutin NG 20. Almost 1M pa Lang ako. 😄😄

 

Kung madaragdagan ang active income sources, iikli ang 20 year timeframe ko.

The good thing is your planning to retire in the Philippines so cost of living is much lower, which is allow you to retire early. I'm considering to retire there as well kaso lng i love Australia's free health care and awesome quality of living (less pollution as well).

[MRROUGHSEX]

The good thing is your planning to retire in the Philippines so cost of living is much lower, which is allow you to retire early. I'm considering to retire there as well kaso lng i love Australia's free health care and awesome quality of living (less pollution as well).

Maganda talaga Australia..nature.

 

Ang habol ko lang naman sa Pinas talaga is year-round beach lifestyle due to favorable beach weather. Masarap ung grilled seafood sa baybay dagat. Price affordability is a bonus but not the main consideration. Nagpapakadalubhasa na talaga ako sa skillset ko para pwede ko madala trabaho sa Pinas later on. Pag dalubhasa na ako subukan ko umuwi sa Pinas at dyan na magwork. I don't see the difference. I'm in MidSouth US, my Manager is in Gulfcoast US and my manager's Manager is in Northeast US. In short, hindi kami nagkikita. It follows it would not matter if I work in whatever address...be it Pinas address.

[neville]

The good thing is your planning to retire in the Philippines so cost of living is much lower, which is allow you to retire early. I'm considering to retire there as well kaso lng i love Australia's free health care and awesome quality of living (less pollution as well).

 

Kahit Bata pa ako, Hindi pumasok sa isip ko na tumira abroad. Para say bakasyon at aral Lang siya. Mas gusto ko pa ring dito sa Pilipinas tumira.

 

As for healthcare, hopefully mas maayos na siya rito pag retirement age na nating lahat 😊

[JohannBeckham]

Maganda talaga Australia..nature.

 

Ang habol ko lang naman sa Pinas talaga is year-round beach lifestyle due to favorable beach weather. Masarap ung grilled seafood sa baybay dagat. Price affordability is a bonus but not the main consideration. Nagpapakadalubhasa na talaga ako sa skillset ko para pwede ko madala trabaho sa Pinas later on. Pag dalubhasa na ako subukan ko umuwi sa Pinas at dyan na magwork. I don't see the difference. I'm in MidSouth US, my Manager is in Gulfcoast US and my manager's Manager is in Northeast US. In short, hindi kami nagkikita. It follows it would not matter if I work in whatever address...be it Pinas address.

Wow, that's a good deal being location independent that you are, anong gig or side hassle yan?. I'm currently a stone throw away from the beach here in Australia (like 200 meters away, natatanaw ko lng sa window ang beach), so i love it that you can just come down for a dip and do whatever after. I love the lifestyle here, but the cost is horribly high.

[JohannBeckham]

Dream dreams session:

When you reach financial independence, what do you dream doing?

 

For me it's this:

https://m.facebook.com/story.php?story_fbid=241440400069949&id=548013005612377

[MRROUGHSEX]

Wow, that's a good deal being location independent that you are, anong gig or side hassle yan?. I'm currently a stone throw away from the beach here in Australia (like 200 meters away, natatanaw ko lng sa window ang beach), so i love it that you can just come down for a dip and do whatever after. I love the lifestyle here, but the cost is horribly high.

Thanks! I'd like to think I'm one of the few advanced software developers using Inovalon, the biggest accredited platform in the US healthcare industry.

Edited February 16, 2019 by MRROUGHSEX

[MRROUGHSEX]

Dream dreams session:

When you reach financial independence, what do you dream doing?

 

For me it's this:

https://m.facebook.com/story.php?story_fbid=241440400069949&id=548013005612377

Establish my business by the beach, a dive shop. Surfing talaga love ko but as I grow older, not realistic. Scuba diving training and guiding meanwhile, I can do even when I'm old.

[neville]

Dream dreams session:

When you reach financial independence, what do you dream doing?

 

For me it's this:

https://m.facebook.com/story.php?story_fbid=241440400069949&id=548013005612377

 

 

Residing in a one-hectare tree and vegetable farm. Occasional; freelance translation, full-time research on veganizing Filipino food province by province.

[JohannBeckham]

Kahit Bata pa ako, Hindi pumasok sa isip ko na tumira abroad. Para say bakasyon at aral Lang siya. Mas gusto ko pa ring dito sa Pilipinas tumira.

 

As for healthcare, hopefully mas maayos na siya rito pag retirement age na nating lahat 😊

Totoo tlaga yung kasabihang "it's more fun in the Philippines".

 

The good thing being a dual citizen (in my case Australian + Filipino) is that I have options. If for example the Philippine government stuff up their policies for their citizens, pollution is hazardous, criminality is high, etc., then i have Australia as a fallback.

[JohannBeckham]

Establish my business by the beach, a dive shop. Surfing talaga love ko but as I grow older, not realistic. Scuba diving training and guiding meanwhile, I can do even when I'm old.

Wow scuba diving. We are lucky to have such beautiful diving sites in the Philippines and the water is warm unlike in some places in Australia or New Zealand where the water is cold.

[MRROUGHSEX]

Wow scuba diving. We are lucky to have such beautiful diving sites in the Philippines and the water is warm unlike in some places in Australia or New Zealand where the water is cold.

Yessir.

 

Kaya very year ako umuuwi. Kung magkano bonus, yun ang Budget. Minsan $3K, minsan $5K, most of the time it's in between..

 

 

[MRROUGHSEX]

20190221 Updates:

* Reduce total debt to $58K by year end (currently at $71.6K)

* Grow retirement savings to $170K by year end (currently at $153.5K)

* Anticipate house value to appreciate to $280K by year end (currently at $266.7K)

* Increase college savings of children to $20K by year end (currently at $13.0K)

* Buttress business fund to $65K by year end (currently at $55.4K)

* Expect condo value to appreciate to $50K by year end (currently at $48.2K)

[MRROUGHSEX]

I filed my income tax today and in 3 weeks will get my overwithheld tax returned. That will be my budget for this year's trip to Pinas. It will be a little over Php300,000 so that is a great budget for 3 weeks to splurge on.

[MRROUGHSEX]

20190308 Updates:

* Reduce total debt to $58K by year end (currently at $70.7K)

* Grow retirement savings to $170K by year end (currently at $155K)

* Anticipate house value to appreciate to $280K by year end (currently at $267.9K)

* Increase college savings of children to $20K by year end (currently at $13.5K)

* Buttress business fund to $65K by year end (currently at $56.1K)

* Expect condo value to appreciate to $50K by year end (currently at $48.4K)

[neville]

Looking at my stock and mutual fund portfolio yesterday, it appears that the market is recovering from the backlash.

 

Of course, that is my simplistic view of things. I'm no analyst 😁

 

Waiting for my funds to be wired to my account. I have a bit more time to go to the bank to funnel fresh cash for my portfolio.

 

On the flip side, I am stopping myself from stepping foot a supermarket. A one-time bill of PHP8550.00 for a single person is not the logical thing to do.

 

Credit card debt manageable still. No more of the factors that pushed me to start this thread in the first place. 😁

 

So far so good.

[JohannBeckham]

ako nmn base sa forecast ko sa mga gastusin this year e.g. masters ni misis (tuition, books, etc), just bought new dell XPS 13 9380 4k, plus a couple of short holidays (around Australia and Singapore), mukang di namin mabi beat yung savings rate na 55% last year of take home pay. Pero ganyan tlaga minsan kailangang mag compromise.

 

May ETFs are all doing good this year but im still keeping $10k cash just in case the market tank (U.S., Australia or Europe because of Brexit).

[PenetrayShawn]

Dream dreams session:

When you reach financial independence, what do you dream doing?

 

For me it's this:

https://m.facebook.com/story.php?story_fbid=241440400069949&id=548013005612377

 

get into development work since i won't have to worry about bills as much. continue learning as well so i can mentor others who want to be financially independent too

[MRROUGHSEX]

With a 97% average mark in the past 6 grading periods and a perfect 600 out of 600 score in the State-wide exam, my kid got offered to enroll into the 2nd best and most prestigious High School in Tennessee - Hume-Fogg. The 1st is University School of Nashville, tuition $25K/year. The 3rd is Saint Mary's Episcopal, tuition $22K/year. Essentially I am paying a tuition between those 2 worth $23.5K/year.

 

But since Hume Fogg is all about academic scholars, my tuition is FREE! It only accepts 7 out of 100 applicants with a cap of 225 freshmen and a 3-year wait list.

 

If I accept their offer to enroll my kid there, it will have a favorable turn for me financial planning-wise:

 

Prior

High School Education budget: $23,500/year

 

Now

High School Education budget: $0/year

 

Edited March 23, 2019 by MRROUGHSEX

[JohannBeckham]

Congrats Pre! Ang mahal talaga ng Education sa U.S.

[redeswaq]

Congrats sir.

 

 

Reading your and Johann's insights was very informative for me. Gusto ko rin sana mag invest for my retirement but don't know where to start, so far I only have a savings account that's been sleeping for a year now at the bank.

[JohannBeckham]

 

Reading your and Johann's insights was very informative for me. Gusto ko rin sana mag invest for my retirement but don't know where to start, so far I only have a savings account that's been sleeping for a year now at the bank.

Thats good nkapag start ka na! Starting is always the hardest part. Well, i dont know your personal situation so feel free to ask us any financial planning related stuff for we are happy to help. Ang number one usually na advice ko for a beginner is to have a budget every month at the beginning of the month para alam mo where your money is going. I've been tracking mine since 2014 and i can tell you how much it helps me in my finances. I use spreadsheet to generate a budget, track expenses and my networth. Nkaka encourage looking how you become better with money as the year goes on. You do not have to compare your financial situation to others, you can only compare yourself to your past self and make necessary adjustment (kaya ita track mo sya sa spreadsheet). Grabeh, a budget is so powerful, it can change your life for the better.

 

Having some sort of savings in a bank is a good thing for short term needs or for emergency(lahat tyo nkakaranas ng emergency situation kung saan kailangang kailangan mo ng pera kya maigi na may pera ka sa bangko when that happens). Ang rule of thumb na gamit ng marami for initial emergency fund is $500 to $ 1,000 kung nkatira sa abroad. Sa Pinas di ko sure ang rule of thumb how much ang usual. Maybe this community can share some ideas.

 

Once meron ka nang na alot na money for your living expenses, at napunuan mo na yung initial pang emergency at may natira pa sa sweldo mo, ibayad mo sa consumer debt e.g. credit card or other personal loan. There's no point investing your money that can earn 8-12% per annum kung nagbabayad ka ng credit card with interest of 20-25%. Pay your debts in full(except mortgage syempre kasi mahirap bayaran in full yun kasi sobrang laki).

 

Next once bayad mo na lahat ng utang mo, punuan mo yung initial emergency fund, at palakihin mo sya na enough na para mabuhay ka for 3 to 6 months just in case mawalan ka ng trabaho.

 

Then start investing in mutual fund or ETF (this is my preferred investment vehicle if real estate investing or starting your own business is not for you).

 

Yan lng muna masa suggest ko, work muna ulit

[PenetrayShawn]

Thats good nkapag start ka na! Starting is always the hardest part. Well, i dont know your personal situation so feel free to ask us any financial planning related stuff for we are happy to help. Ang number one usually na advice ko for a beginner is to have a budget every month at the beginning of the month para alam mo where your money is going. I've been tracking mine since 2014 and i can tell you how much it helps me in my finances. I use spreadsheet to generate a budget, track expenses and my networth. Nkaka encourage looking how you become better with money as the year goes on. You do not have to compare your financial situation to others, you can only compare yourself to your past self and make necessary adjustment (kaya ita track mo sya sa spreadsheet). Grabeh, a budget is so powerful, it can change your life for the better.

 

Having some sort of savings in a bank is a good thing for short term needs or for emergency(lahat tyo nkakaranas ng emergency situation kung saan kailangang kailangan mo ng pera kya maigi na may pera ka sa bangko when that happens). Ang rule of thumb na gamit ng marami for initial emergency fund is $500 to $ 1,000 kung nkatira sa abroad. Sa Pinas di ko sure ang rule of thumb how much ang usual. Maybe this community can share some ideas.

 

Once meron ka nang na alot na money for your living expenses, at napunuan mo na yung initial pang emergency at may natira pa sa sweldo mo, ibayad mo sa consumer debt e.g. credit card or other personal loan. There's no point investing your money that can earn 8-12% per annum kung nagbabayad ka ng credit card with interest of 20-25%. Pay your debts in full(except mortgage syempre kasi mahirap bayaran in full yun kasi sobrang laki).

 

Next once bayad mo na lahat ng utang mo, punuan mo yung initial emergency fund, at palakihin mo sya na enough na para mabuhay ka for 3 to 6 months just in case mawalan ka ng trabaho.

 

Then start investing in mutual fund or ETF (this is my preferred investment vehicle if real estate investing or starting your own business is not for you).

 

Yan lng muna masa suggest ko, work muna ulit

 

good points, just to add my take:

 

track expenses first without making any conscious effort to change your routine

 

after a month they can categorize expenses into more general concepts ex jeep and bus would fall under transportation

 

from there rank expenses from biggest to smallest then consider where changes can be made. for me a 30 minute walk after work could substitute for riding one jeep due to traffic

 

necessities expenses (food, shelter, load, water) would probably be the core of emergency living expenses but costs would likely depend on where the person concerned lives

 

after debt is paid off i would suggest getting insurance and considering this as super emergency expense as opposed to not-having-work emergency money

 

investing would be ok once insured na to avoid the temptation of getting greedy with investing. mutual fund or uitf would be a good start to offload the thinking/effort. i would then suggest investing in a little financial education (one good book would be enough for starters) especially personal finance in general, the financial system/economy, and one asset type that appeals to them and is understandable. for some people that would be real estate, others, franchising, others still, business

 

also congrats mrroughsex, hopefully namana din ni kid yung financial sense mo. i can imagine how hard it is to raise kids in the US since tingin ko materialistic na ang culture diyan in general

Edited March 27, 2019 by PenetrayShawn

[redeswaq]

Thats good nkapag start ka na! Starting is always the hardest part. Well, i dont know your personal situation so feel free to ask us any financial planning related stuff for we are happy to help. Ang number one usually na advice ko for a beginner is to have a budget every month at the beginning of the month para alam mo where your money is going. I've been tracking mine since 2014 and i can tell you how much it helps me in my finances. I use spreadsheet to generate a budget, track expenses and my networth. Nkaka encourage looking how you become better with money as the year goes on. You do not have to compare your financial situation to others, you can only compare yourself to your past self and make necessary adjustment (kaya ita track mo sya sa spreadsheet). Grabeh, a budget is so powerful, it can change your life for the better.

 

Having some sort of savings in a bank is a good thing for short term needs or for emergency(lahat tyo nkakaranas ng emergency situation kung saan kailangang kailangan mo ng pera kya maigi na may pera ka sa bangko when that happens). Ang rule of thumb na gamit ng marami for initial emergency fund is $500 to $ 1,000 kung nkatira sa abroad. Sa Pinas di ko sure ang rule of thumb how much ang usual. Maybe this community can share some ideas.

 

Once meron ka nang na alot na money for your living expenses, at napunuan mo na yung initial pang emergency at may natira pa sa sweldo mo, ibayad mo sa consumer debt e.g. credit card or other personal loan. There's no point investing your money that can earn 8-12% per annum kung nagbabayad ka ng credit card with interest of 20-25%. Pay your debts in full(except mortgage syempre kasi mahirap bayaran in full yun kasi sobrang laki).

 

Next once bayad mo na lahat ng utang mo, punuan mo yung initial emergency fund, at palakihin mo sya na enough na para mabuhay ka for 3 to 6 months just in case mawalan ka ng trabaho.

 

Then start investing in mutual fund or ETF (this is my preferred investment vehicle if real estate investing or starting your own business is not for you).

 

Yan lng muna masa suggest ko, work muna ulit

I generally have no loans to pay at the moment, very minimal expenses. Been able to save 10,000 monthly in my savings for the past 2 years. Pero I feel nasasayang ko yung potential if sa bank lang siya nakalagay.

 

What book would you people recommend for starters?