money Financial Planning

[MRROUGHSEX]

20190408 Updates:

* Reduce total debt to $58K by year end (currently at $69.0K)

* Grow retirement savings to $170K by year end (currently at $156K)

* Anticipate house value to appreciate to $280K by year end (currently at $269.5K)

* Increase college savings of children to $20K by year end (currently at $14.0K)

* Buttress business fund to $65K by year end (currently at $57.2K)

* Expect condo value to appreciate to $50K by year end (currently at $48.6K)

[Papa Popoy]

20190408 Updates:

 

* Reduce total debt to $58K by year end (currently at $69.0K)

* Grow retirement savings to $170K by year end (currently at $156K)

* Anticipate house value to appreciate to $280K by year end (currently at $269.5K)

* Increase college savings of children to $20K by year end (currently at $14.0K)

* Buttress business fund to $65K by year end (currently at $57.2K)

* Expect condo value to appreciate to $50K by year end (currently at $48.6K)

Anglaki ng sweldo..estimated budget per month from the above targets approximately USD5.5K na...hndi pa ksma ang expenses..pautang nman sir 😜😂✌️

[JohannBeckham]

Anglaki ng sweldo..estimated budget per month from the above targets approximately USD5.5K na...hndi pa ksma ang expenses..pautang nman sir 😜😂✌️

MRS has a good handle of his finances, well done!

His savings rate i guess is high kya mabilis bumulusok ang networth, something all of us needs to emulate. High-five MRS!

 

By the way, sa Pinas lumalaki na rin ba ang sweldo (particularly those in I.T. or BPO industry)?

 

I think ang huling sweldo ko sa Pinas way back in 2006 (13 years ago) before ako mag abroad is just Php 40k/month.

Edited April 8, 2019 by JohannBeckham

[Papa Popoy]

MRS has a good handle of his finances, well done!

His savings rate i guess is high kya mabilis bumulusok ang networth, something all of us needs to emulate. High-five MRS!

By the way, sa Pinas lumalaki na rin ba ang sweldo (particularly those in I.T. or BPO industry)?

I think ang huling sweldo ko sa Pinas way back in 2006 (13 years ago) before ako mag abroad is just Php 40k/month.

Wala rin akong alam sa sweldo sa Pinas kung gaano na ba kalaki..(working overseas din ako)

Ayoko rin pag-usapan sweldo baka malungkot lang ako pag nalaman ko sweldo nyo 😂 Pero magkano nga ba sweldo nyo ni MRS?? 😂😂😂✌️✌️✌️

[neville]

On another topic, lets discuss about emergency fund? Do you guys have one? What's your strategy?

 

Ako to be honest with you guys, i'll come clean, i dont actually have one myself. I know, i know, i've been a hypocrite telling others to have one (the standard 3-6 months), but thats because i dont know other people's circumstances so i tend to be more on the conservative side.

Since i do have a high savings rate (52-55% of take-home pay), i dont feel the need to have cash in the bank earning almost nothing. I want my dollars to be invested working for me.

So what's my emergency fund plan?

1. Keep savings in an online high interest bank account short term, meaning until mareceive ko yung next salary ko.

E.g.

31-Mar-2019 Do my monthly budget pra sa sweldo na marereceived kinabukasan (monthly ang sweldo ko)

01-Apr-2019 nareceived sweldo. Transfer agad ang savings sa online High interest savings account.

30-Apr-2019 Do my monthly budget ulit pra sa marereceive na sweldo kinabukasan

01-May-2019 salary received, therefore transfer the March savings to brokerage account to buy ETF. Transfer May savings to online high savings account.

 

And so on, and so forth:

 

2. If plan 1 didnt work, use credit cards

3. If plan 2 is not enough, sell ETF

 

so yan ang financial emergency plan ko. Kyo ba?

 

 

I have an emergency fund. Money that I barely touch and left to rot in a savings account. I actually have two. Hehe

 

One is the 100k balance I barely touch and another one that I pegged at 60k as contingency fund for when I finally leave the regular nightly desk jock job in the second half of the year.

 

I won't really touch both funds. I'll still have my income coming in, but it won't be as predictable as a regular salary in terms of when it hits my bank account (consistent estimate vs frequency is the following month).

 

So, now I have 140k but I prefer to have 250k total to make me feel secure enough. Then I have roughly 240k in stocks and mutual funds.

 

As long as the money comes in, I will continue to pile up on the savings and investment. My investment approach is aggressive so the growth is faSter.

[PenetrayShawn]

 

20190408 Updates:

* Reduce total debt to $58K by year end (currently at $69.0K)

* Grow retirement savings to $170K by year end (currently at $156K)

* Anticipate house value to appreciate to $280K by year end (currently at $269.5K)

* Increase college savings of children to $20K by year end (currently at $14.0K)

* Buttress business fund to $65K by year end (currently at $57.2K)

* Expect condo value to appreciate to $50K by year end (currently at $48.6K)

 

 

congrats. i'm curious, if your kids manage to get a college scholarship, where would you stash the sudden windfall?

 

 

 

I have an emergency fund. Money that I barely touch and left to rot in a savings account. I actually have two. Hehe

 

One is the 100k balance I barely touch and another one that I pegged at 60k as contingency fund for when I finally leave the regular nightly desk jock job in the second half of the year.

 

I won't really touch both funds. I'll still have my income coming in, but it won't be as predictable as a regular salary in terms of when it hits my bank account (consistent estimate vs frequency is the following month).

 

So, now I have 140k but I prefer to have 250k total to make me feel secure enough. Then I have roughly 240k in stocks and mutual funds.

 

As long as the money comes in, I will continue to pile up on the savings and investment. My investment approach is aggressive so the growth is faSter.

 

best wishes on leaving the desk job hamster wheel. consider reading the e myth by michael gerber if you're getting into business

Edited April 8, 2019 by PenetrayShawn

[Papa Popoy]

I have an emergency fund. Money that I barely touch and left to rot in a savings account. I actually have two. Hehe

One is the 100k balance I barely touch and another one that I pegged at 60k as contingency fund for when I finally leave the regular nightly desk jock job in the second half of the year.

I won't really touch both funds. I'll still have my income coming in, but it won't be as predictable as a regular salary in terms of when it hits my bank account (consistent estimate vs frequency is the following month).

So, now I have 140k but I prefer to have 250k total to make me feel secure enough. Then I have roughly 240k in stocks and mutual funds.

As long as the money comes in, I will continue to pile up on the savings and investment. My investment approach is aggressive so the growth is faSter.

Huwaw! Pakape ka naman sa starbucks 😜😂✌

For me, aggressive approach sa MF still considered low risk kaya suggestion ko ituloy mo lang yan.

Ayokong magsabi ng figures kung magkano emergency fund ko, basta laging may laman bank accounts ko..I dont consider MF as emergency fund kasi hindi sya liquid..kelangan pa ng few days or a week bago makuha ang pera..

Are you considering to invest in properties? Ambilis kasi tumaas ng value...eg.house & lot value becomes more than 3x after ~10yrs, lot value becomes twice after 3yrs, condo naman increased by 25% after 1.5yrs khit n hndi p natatayo, etc

Pero ang suggestion ko kung mag-iinvest tayo, make sure na diversified dapat...dont put all your eggs in 1 basket...kaya ngayon yung isang itlog ko nsa MF, yung isang itlog naman nsa properties....😂😂😂

[MRROUGHSEX]

Anglaki ng sweldo..estimated budget per month from the above targets approximately USD5.5K na...hndi pa ksma ang expenses..pautang nman sir ✌️

Ke JB tayo manghingi ng pera hehe. Mas malaki sweldo nya saka bachelor living pa yata.

[MRROUGHSEX]

 

congrats. i'm curious, if your kids manage to get a college scholarship, where would you stash the sudden windfall?

 

 

 

 

 

Hi PentrayShawn. Btw, I like the nick. Haha.

 

I am really not saving much for college tuition. I am mentoring my kid (which is why I needed a work from home job) on his studies. He needs to get scholarships for his tuition. That is my only plan.

 

So sadly pre no windfall for me LOL. I am using this college savings plan account called 529. Deposits into 529 can only be used for "education" expenses such as tuition, books, computers and softwares. As such I can not put too much money on it in the event kid/s get scholarships/financial aid on tuition. But I like to put some on it, money I will surely spend even with 100% scholarships/financial aid. This is because of the capital gain on 529 savings account is not taxed.

 

I am targetting $44K on 529 when my eldest starts college. Then starting 2nd year of college, I will shoulder an additional $12K for the next 3 years for a total of $80K.

 

Where I am really putting my savings is on Retirement and "Business" fund which could really turn to be used for parents' medical bills since they have not saved for retirement. Syempre, ako dito sa US, ako aasahan huhuhu.

 

My kid getting into Hume-Fogg is something I've hoped for all along. It is ranked number 23 best public school in the entire nation and 90 overall. Very happy as it is a great staging point for jumping into premier college or even Ivy Leagues later on.

 

[neville]

 

congrats. i'm curious, if your kids manage to get a college scholarship, where would you stash the sudden windfall?

 

 

 

best wishes on leaving the desk job hamster wheel. consider reading the e myth by michael gerber if you're getting into business

 

Thanks, sir. Hopefully I have time to read in May or June hehehe

 

Buti na Lang may business partner ako na sanay sa operations side. Ako say creative. May tatlo pa kaming shareholders na pampakuwela Ang papel (seryoso).

 

😁😁😁

[MRROUGHSEX]

Thanks, sir. Hopefully I have time to read in May or June hehehe

 

Buti na Lang may business partner ako na sanay sa operations side. Ako say creative. May tatlo pa kaming shareholders na pampakuwela Ang papel (seryoso).

 

 

Paano set-up nyo if I may? Equal equity among the 5 of you?

[neville]

Huwaw! Pakape ka naman sa starbucks 😜😂✌

For me, aggressive approach sa MF still considered low risk kaya suggestion ko ituloy mo lang yan.

Ayokong magsabi ng figures kung magkano emergency fund ko, basta laging may laman bank accounts ko..I dont consider MF as emergency fund kasi hindi sya liquid..kelangan pa ng few days or a week bago makuha ang pera..

Are you considering to invest in properties? Ambilis kasi tumaas ng value...eg.house & lot value becomes more than 3x after ~10yrs, lot value becomes twice after 3yrs, condo naman increased by 25% after 1.5yrs khit n hndi p natatayo, etc

Pero ang suggestion ko kung mag-iinvest tayo, make sure na diversified dapat...dont put all your eggs in 1 basket...kaya ngayon yung isang itlog ko nsa MF, yung isang itlog naman nsa properties....😂😂😂

 

Ah, investment ang mutual fund. Cash talaga Ang emergency fund ko.

 

Haha, sige libre Kita said Starbucks pag 1M na loose cash sa bank account ko. 😁

 

Tuloy-tuloy Lang invest ko sa mutual funds at apat na klase ng stocks. Palalakihin ko pa value nila. MATAAS Ang goal ko Kaya hindi pa puwedeng huminga. Yung insurance ko Naman Kasi ay long-term savings Lang Turing ko, di investment.

 

Property is the last on my list. Isang ektaryang lupa target ko Kasi. Retirement home cum farm siya. Wala akong pasensyang maging landlord kaya di ko pa feel maging property owner.

[neville]

Paano set-up nyo if I may? Equal equity among the 5 of you?

50-50 kami NG ate ko. Walang share Yung tatlo Kasi mga pamangkin ko yon.

 

Besides, Ang talagang kakayod sa company ay ako. Sa paperwork area bahala ate ko.

 

Pag lumaki na kami at may ibang employees na revenue generating Rin,adjust na namin siguro uli NG ate ko Ang division of income.

 

Sa akin Rin Kasi galing Ang kliyente 😁

 

Pag settled na Ang company, mag-uusap uli kami. Nasa SEC pa Ang application kasi.

[JohannBeckham]

Ke JB tayo manghingi ng pera hehe. Mas malaki sweldo nya saka bachelor living pa yata.

Not bachelor, but happily-married with a 3 year old. Life is good.

[JohannBeckham]

50-50 kami NG ate ko. Walang share Yung tatlo Kasi mga pamangkin ko yon.

 

Besides, Ang talagang kakayod sa company ay ako. Sa paperwork area bahala ate ko.

 

Pag lumaki na kami at may ibang employees na revenue generating Rin,adjust na namin siguro uli NG ate ko Ang division of income.

 

Sa akin Rin Kasi galing Ang kliyente 😁

 

Pag settled na Ang company, mag-uusap uli kami. Nasa SEC pa Ang application kasi.

It will be interesting to know your "Emergency Fund" strategy for your business. Will that be separate from your personal emergency fund? Since you have business partners, are they aware that they're such fund and will they help fund it initially?

 

Because life happens to businesses as well e.g. Market down turn, your client is delayed in their payment or goes bankrupt, etc. I bet this community will learn from your business emergency fund strategy.

Edited April 9, 2019 by JohannBeckham