Hi!

Equity = Asset - Liability

Asset
======
Total in all checking and savings account --> RM2k
Current value of life insurance (cash value) --> unsure (this figure should be the amount you get if you surrender the policy today)

Current value of home ---> RM100k (RM300k divide 3 person)
Current value of any personal property and cash on hand (handphone, laptop, guitar etc) --> RM2000

Total Assets --> RM104k


Liabilities
======
None

Net worth---> RM104k

i dun think so, your life insurance can be surrendered for cash, so the said cash amount would be the asset.

liability is the amount owed, not amount accrued. Even if it is ,then we should consider put our rent expense into liability which is not logic.

please, don't report your life insurance amount, not 100k, please report the amount you can get if you surrender the policy NOW, not when you die.

2nd, cut the credit card with scissor, you will thank me in future. ( but please settle the debt first only cut)

3rd, liquidate all mutual fund, stock options, use it to repay your and your gf car's loan quick.

4th, don't forget save up 6 months of expenses as your emergency fund.

5th, if you can't do 4th, there are only 2 choices.


NOMBOR SATU: <---i like bm ahha, increase your income: which means go find part time job

Number 2: decrease your expense, overall, from food to lodging.


Suggestion: sell off the car. get one car enough.

And, don't ever try personal loan to get out of the mess. It will kill you in future. Please talk to us if you are not clear.

This post has been edited by alexkos: Mar 3 2011, 01:43 PM

car loan. the lesser the principal, the lesser the interest charged. go.

jeff is right, sorry for giving wrong info.

car loan interest is determined by initial amount, hence flat interest every month (quite alot)

house loan interest is determined by unpaid principal amount, hence interest decreases over time.

But we shouldn't make decision based on the interest saved by car loan and house loan.
One rule of thumb is to settle all debts except the home mortgage.

So I still suggest you to settle car loan first. It is unwise to talk about saving when one is in liability.

@bookstore

start by this step.

1) save up to RM3000 emergency fund
2) settle all debts except the home mortgage, so your ptptn loan, go pay it faster.
3) save up to 3 months or 6 months of your salary, depending on your job stability.
4) save around 15% of amount of your salary for retirement, go look for guaranteed investment plan, usually commit 10 or 20 years.


just an advice, hope it helps.

interesting rental business! ya same comment, get more liquid asset (eg, emergency fund X3month)

if your work not stable then save up to 6 months.

and you forgot retirement plan..