Today I read a piece of article said that a lot of people are not financial healthy. They spent a lot of money to buy house and car. They look good on the outside but actually they are rotting inside. So they provide some tips and advice to check if your financial is healthy or not. Firstly, never loan more than 15 years for housing loan. Reason is loan 20 - 30 years, you are as good as "giving" money to bank. So try to calculate to buy a house that you can pay off in 10 years time.
Next, a lot of people love to buy cars. The bigger the better. So people will envy them etc... Try to pay off everything within 5 years is the trick. Anything more than 5 years usually means you are straining yourself with interest.
Lastly, you should have at least 6 times of your monthly gross income sitting in your bank now. If not, you are not ready if suddenly you are out of job. Also your monthly bills + loans should be 35% of your gross income. Anything more means you are danger in in debt and not enough money to retire.
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