money Financial Planning

[paupau]

Thanks for giving us more details. It gives us context (somewhat) of your current situation as personal finance is really personal, walang cookie cutter approach.

 

 

What are your goals that your investment would be the means for you to meet those goals? Your answer to this question i think would drive many of recommendations for your specific situation.

 

Your actually in a good financial situation compared to alot of Filipinos sa Pinas because of the following:

1. Your still considered young - if you invest now your money would compound overtime. Sabi nga ni Albert Einstein Compound interest is the eighth wonder of the world. He who understands it, earns it he who doesn't pays it.. Personally when i started, i was in a negative financial standing(credit card debt) and i only started investing at age 31, after i get married (I'm married to an accountant). Pero since then I never stop investing and so far my dividends is giving me more than Php 50k/month.

2. Good career - I work in I.T. rin and Its a good career. And lota of opportunity local or abroad especially if your hardworking, willing to learn, have a good attitude and a good team player, you'll do well

3. Wla kang utang - this is good kasi interest on debt has the same compounding effect and your spared from that.

4. Savings is more than expenses - if i understand you right you have more than 50% savings rate. The higher your savings rate, the faster you'll reach your financial goals.

5. Current savings is 1M - have a purpose for this. Is it 100% allocated as emergency fund?

6. You know your risk tolerance - this is important. Personally i'll go with ETF or index fund since its low cost, diversified and very passive. f#&k lock-in funds. The risk and fees is not worth their promise of returns.

 

Current goal ko is to grow my money as much as I can in a short period of time para pampatayo sana ng house and of course emergency fund. Ginagawa ko lang kasi now eh walang humpay na time deposit which is a little bit higher than normal savings account's interest rate.

IT ka din pala, so you have a general idea sa salary ng software devs. Wala na ko utang for now since pinilit ko tapusin bayaran yung sasakyan ko in 2yrs. So now ipon naman for house. Sabihin na natin monthly savings ko eh more than my 40k monthly expenses. And yes for now dun muna ako sa low to medium risk while I'm still trying to learn financial stuffs. Mahirap pasok ng pasok, baka magdugo

[JohannBeckham]

 

Current goal ko is to grow my money as much as I can in a short period of time para pampatayo sana ng house and of course emergency fund. Ginagawa ko lang kasi now eh walang humpay na time deposit which is a little bit higher than normal savings account's interest rate.

IT ka din pala, so you have a general idea sa salary ng software devs. Wala na ko utang for now since pinilit ko tapusin bayaran yung sasakyan ko in 2yrs. So now ipon naman for house. Sabihin na natin monthly savings ko eh more than my 40k monthly expenses. And yes for now dun muna ako sa low to medium risk while I'm still trying to learn financial stuffs. Mahirap pasok ng pasok, baka magdugo

Ayun, narinig na rin namin yung goal mo which are:

1.Pampatayo ng house (I assume as a principal place of residence)

2.Emergency fund (i assume to fully fund it)

 

On Goal#2: a fully fund emergency fund is different for for everyone but most personal finance book i read, it is offen rexommended to have between 3-6 months of expenses. So if your spending 40k a month, set aside 120k to 240k. Emergency fund is not an investment, its an insurance to the f#&k up of life e.g. medical emergency mo, or family mo, etc. Generally, emergency fund is park in typical high(er) interest savings account (H.I.S.A.) since you can withdraw it easily in times of emergency.Most banks give f#&k all interest, but just get what you can get. Personally my bank only offers 2.1% per annum, but its better than nothing

 

On Goal #1: i assume, you've done your homework on this like how much money is required sa pampatayo ng house and whats your timeline sa pampatayo? If your timeline is short (less than 5 years), you dont need to invest the money in the stock market. Since you save 1M already, maybe set aside 120kto 240k of it as emergency fund, and the rest of 760k or 880 for the house you'll building. The shortfall, You can either save or take a loan. I personally do not own a house and I'm renting. But it's a lifestyle choice naming mag asawa since we want to be within walking /biking distance sa work namin, plus malapit sa parks where we can do our regular runs and burn calories, walking distance to playgrounds and water park for our daugther, secure and a big patio with an awesome ocean view to watch the yachts passing by and watch awesome sunset and sunrise. If we will be buying, its gonna be too expensive where we are so we rent. Buying a house to live is a lifestyle choice and we simply choose not to give up the benefits we are getting in renting.

Edited January 24, 2020 by JohannBeckham

[JohannBeckham]

I'm glad financial education is getting more accessible to more pinoys with YouTube and other sites.

 

I saw this video by Vince Rapisura and seems legit basic stuff.

 

https://youtu.be/jrNoH2owgBE

[neville]

As of January 2020:

 

Annual Net Worth 2018: PhP 540,574

Annual Net Worth 2019: PhP 2.6M

Growth: approximately 416%

 

As of January 2020:

 

Emergency Fund: PhP 151,000

Insurance

-Philamlife PhP 800,000

-Sunlife PhP 1.4M

 

Active Income: PhP 60,000/month

Passive/Inactive Income: PhP PhP 2.6M (Insurance, Stocks, Mutual Funds, Time Deposit)

 

Payments (as of 12/2019): PhP 712,000

 

Target Values:

 

Emergency Fund: PhP 1.5M

Insurance: PhP 3M

2020 Annual Worth: PhP 3.5M

Edited January 30, 2020 by neville

[Papa Popoy]

As of January 2020:

Annual Net Worth 2018: PhP 540,574

Annual Net Worth 2019: PhP 2.6M

Growth: approximately 416%

As of January 2020:

Emergency Fund: PhP 151,000

Insurance

-Philamlife PhP 800,000

-Sunlife PhP 1.4M

Active Income: PhP 60,000/month

Passive/Inactive Income: PhP PhP 2.6M (Insurance, Stocks, Mutual Funds, Time Deposit)

Payments (as of 12/2019): PhP 712,000

Target Values:

Emergency Fund: PhP 1.5M

Insurance: PhP 3M

2020 Annual Worth: PhP 3.5M

Angyaman mo na neville..pwede na mag-asawa 😜

Pakape at pacanton ka naman 😂🍻

Edited January 31, 2020 by Papa Pipoy

[Papa Popoy]

Thanks for these mga sir. To answer your questions:

I'm a 35yrs old IT professional working here sa pinas. I have 1 dependent. Wala utang. Monthly expenses is around 40k, and savings is more than what I spend. Current savings is less than 1M. Kung di ako siguro naadik dati sa spakol, for sure milyonaryo na din ako tulad nyo .And yes I maintain a spreadsheet that tracks my money (in and out).

Not really into stocks, for me mejo mataas learning curve and kelangan talaga paglaanan ng time. So mejo i'm leaning toward mutual fund or UITF kaso zero idea talaga about them. May inooffer sakin, yung the usual na may need ka bayaran monthly for a few years, then nakalock money mo and magmature after a couple more years. Kaso parang naliliitan ako sa returns versus sa haba ng years na maghihintay.

Mayabang lang po ako pero hindi milyonaryo at hindi mayaman 😜

Mukhang stable ka naman..eto suggestions ko sayo:

1. Kumuha ka ng insurance...life, accident, critical illness, etc. You will never know what will happen to you in future. Better be safe than sorry.

2. In investing, especially for beginners, do not test the depth of the water with both your feet. Whatever investment you choose, wag masyadong magtake ng high risk..in my experience ETF ang pinakanasayahan ako kumpara sa time deposit, trust at mutual fund. Ok lang rin magtake ng high risk kung medyo familiar ka na.

3. Do not put all your eggs in one basket. Try to diversify. Aside from ETF, pwedeng sa stocks, real estate, agriculture, etc.

Good luck pogi!

[neville]

Angyaman mo na neville..pwede na mag-asawa 😜

Pakape at pacanton ka naman 😂🍻

Di ko nga naramdaman Yung yaman. Wala pang 1M pera ko sa bangko. Puro paper assets pa Lang. Hehe

[brazzerboy]

As of January 2020:

 

Annual Net Worth 2018: PhP 540,574

Annual Net Worth 2019: PhP 2.6M

Growth: approximately 416%

 

As of January 2020:

 

Emergency Fund: PhP 151,000

Insurance

-Philamlife PhP 800,000

-Sunlife PhP 1.4M

 

Active Income: PhP 60,000/month

Passive/Inactive Income: PhP PhP 2.6M (Insurance, Stocks, Mutual Funds, Time Deposit)

 

Payments (as of 12/2019): PhP 712,000

 

Target Values:

 

Emergency Fund: PhP 1.5M

Insurance: PhP 3M

2020 Annual Worth: PhP 3.5M

 

You have a very nice financial situation. Good to see that your hard work is paying off.

[Papa Popoy]

Di ko nga naramdaman Yung yaman. Wala pang 1M pera ko sa bangko. Puro paper assets pa Lang. Hehe

Magpapalit ka ng Dong o kaya ng Rupiah para magka-1M ka na 😂✌️

Ok lang na hindi mo nararamdamang mayaman ka na..ako nga hindi ko nararamdamang nasa ibang bansa pala ako 😂

[MRROUGHSEX]

As of 20200201

2020 Financial Goals

Property

* Reduce total debt to $42K by year-end (currently at $56K)

* Expect condo value to appreciate to $52K by year-end (currently at $50K)

* Anticipate house value to appreciate to $290K by year- end (currently at $275K)

Savings for Current Use

* Increase college savings of children to $27K by year-end (currently at $22K)

* Buttress business fund to $100K by-year end (currently at $84K) (Note: Conservative case at 92% of actual)

* Save up for parents' emergency bills to $8K (currently at $4K)

Savings for Retirement/Future Use

* Grow retirement savings to $210K by year-end (currently at $176K) (Note: Conservative case at 92% of actual)

* Drum up social security savings to $192K by year-end (currently at $178K) (Note: PV at $360K for age 62)

Edited February 1, 2020 by MRROUGHSEX

[JohannBeckham]

As of January 2020:

 

Annual Net Worth 2018: PhP 540,574

Annual Net Worth 2019: PhP 2.6M

Growth: approximately 416%

 

As of January 2020:

 

Emergency Fund: PhP 151,000

Insurance

-Philamlife PhP 800,000

-Sunlife PhP 1.4M

 

Active Income: PhP 60,000/month

Passive/Inactive Income: PhP PhP 2.6M (Insurance, Stocks, Mutual Funds, Time Deposit)

 

Payments (as of 12/2019): PhP 712,000

 

Target Values:

 

Emergency Fund: PhP 1.5M

Insurance: PhP 3M

2020 Annual Worth: PhP 3.5M

416% annual growth rate is excellent! How did you it? Care to share some tips to this community how you quadrupled your networth in a single year?

[JohannBeckham]

February na, araw ng mga puso!

 

Pero magbabaliktanaw muna ako sa nakaraang bwan ng January 2020, ito ang breakdown ng January budget ko by percentage (pra wala ng currency conversion):

 

• Savings 56.85%
• Food 13.81%
• Housing 12.02%
• Family & Entertainment 5.22%

• Utilities 4.52%

• Charity 3.23%
• Health/Fitness 2.13%

• Insurance 1.24%

• Growth/ Creativity/Self Expression 0.50%
• Transportation 0.48%

One thing I notice is that our food budget is greater than our housing expenses (that's all the eat-out and grocery expenses we do). We rarely use our car so parking cost lng yung Transportation cost kya sobrang liit lng. We live in the CBD kasi kaya walking distance lng kme sa lahat e.g. workplace, mall, grocery, parks, playground, etc.

 

On the positive side, we did save good last January and I'm so proud of it. I'm not sure if we can maintain that high savings rate since we probably have several travel this year, but we'll see.

Edited February 2, 2020 by JohannBeckham

[neville]

416% annual growth rate is excellent! How did you it? Care to share some tips to this community how you quadrupled your networth in a single year?

 

 

ano nga ba ginawa ko?

 

60K income ko mula 2019...inubos ko malaking credit card bill ko. noong nasa office ako, halos lahat ng OT, pinatulan ko kaya mas marami akong income.

 

sumugal ako sa pagbili ng 2 insurance noong 2018. nagbukas na rin ako ng COL account Sept. 2018. marami sa extra cash ko, sa COL nagpupunta.

 

last year, kumuha ako ng isa pang insurance plan. kung kaya, kukuha ako ng isa o dalawa pa. kailangan ko lang magpapayat daw para di pahirap sa underwriters.

 

ngayon yung business namin ng ate ko ang inaasikaso. pareho kasing medyo analysis paralysis kami kaya wala pa kaming income. may ayaw mag-adjust mula sa nakasanayan, hindi tuloy kami umuusad. hahaha

 

hanap pa ako ng extra income, pero babantayan ko workload ko kasi talagang gagawin ko na thesis ko. baka wala akong matapos pag masyado akong tutok sa pera. hehehe

[Mrgoogley2889]

I currently have 150k na pwede ko iinvest or gastusin sa business. Baka may maaadvise kayo? I already have emergency fund. Ano Kaya maganda uitf? Stocks? Mutual fund? Or business? Thanks in advance 😁

[neville]

I currently have 150k na pwede ko iinvest or gastusin sa business. Baka may maaadvise kayo? I already have emergency fund. Ano Kaya maganda uitf? Stocks? Mutual fund? Or business? Thanks in advance

 

 

Do you have any immediate need for it? or is the cash mere extra? Do you have debt that you need to pay?

 

How many months of expense does your emergency fund cover? Are you employed? Yes? Is it secure? No? Maybe you may need to up your emergency fund.

 

Do you actively monitor the stock market? Are you familiar with how it works? No? Mutual funds may work. Note that when you plonk your money in the stock market and plan to invest, you need to keep the money you add there for at least 5 years.

 

Business? Can you manage it? Or will someone else do it for you? Do you know your market? Have you done research on your product?

 

 

 

 

Dami ko bang tanong? Dami kasing parameters na kailangang tingnan bago mo gamitin ang pera. Good luck.