Saturday, July 31, 2010

How Much do You Worth? (Part 3)

Do you have any idea how much of your income has been used for loan repayment? You will be able to by calculating debt servicing ratio by dividing your loan repayment with your net take home income. You should keep your debt servicing ratio below 35% of your net take home income so that you have enough cash to meet other end needs.

Wednesday, July 28, 2010

How Much do You Worth? (Part 2)

In my previous post, I have shared a simple formula on calculating your net worth. By having positive worth does not translate into good financial health. Just imagine, remaining healthy, it will be better to have regular medical check up so that any abnormal symptom can be taken care of at no time.

Sunday, July 18, 2010

How Much do You Worth? (Part 1)

We able to know a company's financial condition based on its income statement, cash flow statement and balance sheet.  A number of financial ratios can be generated from different items listed among these reports to identify a company's financial strengths and weaknesses.  For individual perspective, the same can be applied as well.  Now, ask yourself a question, do you know how much you worth?  If you able to tell immediately, congratulation, you are on the right track towards or already achieve financial freedom.  If you are not, it will be better to have one ASAP.  Sometime, you will be surprise what your personal balance sheet will tell you.

Wednesday, July 14, 2010

What & How to Do

If you attended any seminars, courses or workshops before, you may have a number of questions on how exactly to carry out what you have learned afterwards. Don’t worry, this is normal.

Sunday, July 11, 2010

A Bee Or A Fly

One day, a man laid the bottom part of an opened glass bottle in front of a window. He carefully put a bee into the bottle and started his observation. The bee kept hitting the bottom part inside the bottle where it could see the light. After a while, it gave up and rest in the bottle.

Thursday, July 8, 2010

Is Your Insurance Coverage Enough?

Recently, one of my cousins asked my opinion on whether she should cancel her life policy or not? She is married with 2 young children. This is really a one-million-dollar question. If she asks her insurance agent, I guarantee her agent will advise her not to cancel but top up some more because her life is invaluable. My experience tells me that her agent might not help her on calculating insurance need because her agent might not know how to or don’t want to help as, in her agent’s mind, commission earning come first. So, the only way she can do is to learn how to calculate her insurance need and act accordingly.