How much are you all paying for your liabilities? (Cars, etc)

6% on car

Don't have a car, so 0%. Condo is fully paid off, so 0%.

Proud of you, also 0%

How do u calculate car expenses? It’s 120K just for COE now, you earn 1.2mil?

I think he means monthly instalment inclusive of operational costs.

I don't think it's right to classify housing loan and expenses as liabilities.

Why not?

I classify housing loan as 'liabilities' too as we need a place to stay. Even if we sell it in future, we would still need to purchase a new house to stay. But yeah, for my kids it's an 'asset' for them.

Unless it’s a private housing, most HDB are 99 years, so I guess it’s not wrong to classify housing loan as liabilities?

Regardless of whether it’s private property or HDB property, ANY loan in financial accounting is recorded as a liability. The cost at which you bought the property, is recorded as an asset. When you offset the liability against the asset, then you have your net asset amount. How leasehold comes in, is depreciation - technically, you would depreciate the asset every year based on its leasehold - the most straight forward method (there are many) is to take the cost of the HDB, divide it by the number of years left when you first bought it, and depreciate it every year. Of course the depreciation is paper loss - the actual value of the property rises and falls according to the market.

As long the value goes to zero, its a big L in the balance sheet. We shall not kid ourselves...

if u wanna count TOTAL household income, its about 10%. but if u wanna count PERSONAL income, its about 21%. my family strategy is that i pay for every single monthly recurring expenses (from bills, to car, to house (yup - 100% from my CPF), educational, medical...) whilst my wife keeps 100% of her pay, only covering for costs of annual holidays.

great strategy…. for her.

Ancient classic strategy. His monies is her monies. Her monies is her monies. Super good deal for the her.

They’re married, it doesn’t matter who pays for what since all income becomes matrimonial assets. If they ever split, the money that his wife had saved would be split evenly…

what r u babbling about. what if they don’t divorce ? she would have paid 0$ for a house she occupies half of

And so what? The husband is also entitled to the savings that his wife has since she only cover holidays??

guys i found the wife

It's not the same bruh.

If no go holiday then she earn lor no need spend monies

Not a big deal. And no one ever occupies half of a house.

god save ur soul if you don’t understand whats a figure of speech

Provided the wife saves.. Imagine his split of the wealth on the wife's share is in the form of handbags, spa packages 😂

How? Assets acquired during a marriage are split equitably. Whats the loss for him?

huh? who’s talking about divorce? i’m referring to the fact that he pays for almost everything in the marriage

So how is it a bad strategy then? Its their money what regardless of where it comes from. Money is fungible. No difference where it comes from what

Since no difference why not reverse? She pay everything he pay when on holiday.

Why tell me? Thats the arrangement they have a couple what. Anyway who are you to demand that a couple split their money whateve way they want to

Ha, kind of of like me. I pay for essentials, she pays for the the niceties, so that way, our lifestyle is not inflated and we can survive on one income if need be.

Trade imbalance. What do you get from this?

A peaceful, harmonious marriage where both of us don't split hairs and we can focus on - our kid and kid's dream of being a vet, building up the family, our individual careers. Those who see marriage as a trade (regardless how wants to spin it), is either 1 step away from divorce or firmly on the road for singlehood.

Acceptable trade off.

youre one bad decision away from bankruptcy

Thanks for the reply! Seems like the average and logical sense is 5-10% a month in car expenses.

I'd think it really depends. Mathematically, it doesn't make sense for sure and divorce rates are high these days. But what is one basing their marriage on? Statistics? Math? Well, 13yrs into the marriage. 1 beautiful kid, an ok car, both of us had worked hard. I am not complaining and neither am I splitting hairs on a 50-50 thing. Cos for me, marriage is 100-110.

Liabilities : no children/wife - 0%

Based on HHI, Monthly expenses are: Car 6% Mortgage 30% Household expenses 10%

Car 6% means HHI > 25k. Well done 👍

I knew redditors make 10k a month

Rent-40%

Are you planning to buy a home? Unless of course you’re a foreigner. Tbh there’s no reason to be spending 40% on rent. Most financial rule of thumbs suggest 30% max on housing

mortgage - 8.5% of HHI

Based on annual household take-home pay, my annual spending is around 50%….

0%. Retired people cannot risk having debt :)

How do we count? After CPF? or before CPF?

Hi let’s count net take home pay!

Don't work anymore but when I did... All in - 40% Inside that 40% mental sums say my car loan is 4% of my income. No mortgage. So 36% is on expenses which also includes income tax, all healthcare, utilities and services, vacations, etc.

Is your car expense \~ 2k per month?

$1118.

Wow means your car loan $450/mo? How?

Electric, charge at home, charger free, solar to car literally charge for free. Servicing and maintenance free for life under promotion. Hence TCO is purely the car loan.

Question is not well-defined. A person dip into their savings jar and to a huge down payment and a long loan tenor will have smaller monthly 'liability' burden. A cleaner way is to calculate the total depreciation + loan interest/opportunity costs, and then amortize it over the life span of the car. That is more reflective of how much the car ownership costs you relative to your income.

95% .

Car 10% Mortgage 8% but I consider it to be 0% since fully paid for by CPF. No cash out of pocket

Are kids considered liabilities/s At least 70% every month fixed expenses already Mortgage 30% Car 10% Kids 30%

Kids 30%

Curious your kids got tuition and CCA outside school? How many kids? 30% is a lot

2 kids.. private childcare plus cca

What kind of CCA? 30% HHI on kids is quite insane

Private childcare is about 2.5k a month. I send them for swimming and mma classes it's about 500+ a mth. So total alr 3k x 2 lor

You could save 30% a month, that's a healthy saving.

Definition of liabilities varies among every ppl. So I will list kids now young adults as liability since need pay Uni allowance hostel etc Mortgage 0% pay finish Car 0% no car Kids 5% Big ticket items are above still got smaller no need share else long list like grocery utilities parent allowance etc. Estimated all count in maybe 10% max.

Car 10% Kid 10%

Roughly around 17% for both car and housing.

Cars: 0% (Sold it and happier than before) House: Fully paid condo. Expenses: 15-20% (These are not a liability)

Live condo no car a bit rugi unless you sell your parking lot to other residents? Or cannot sell then the lot let other residents illegally use you ok? Or you charge them fee?

Most condos do not come with specific included lots. The parking lots are typically common property meant for all residents. If you don't have a car, that's just your choice. Cannot sell lots.

Strange but my sister condo does come with a lot. Anyway if you no car you pay the maintenance does it break down further monies is for gym swimming pool parking lot etc? If don't have all lump together then yeah you rugi becuz part of the monies could be used for that parking lot.

Condo units with included (specific) parking lots are the exception rather than the norm. If you always think about rugi or not, best is not to stay condo. Everything wanna calculate and extract max value. Stay HDB and get subsidies, grants etc better.

I live HDB indeed

wow car 10% ! What is the repayment for your car like?

Ppl may travel often so need pump petrol ERP parking fees orkong by TP etc etc

Food 5% Parents 5% TCG 60% Transport 3%

car loans are pretty cheap (the interest payment) these days

 

car loans are pretty cheap (the interest payment) these days Some ppl add pump petrol ERP parking fees orkong by TP etc etc together with car loan then count back cheap or not cheap. So you all add in still cheap correct?

0%. Paid off mortgage and car loan many years ago.

Car 1.5% House 2.5 % Due to no debt Overall expenses probably around 40% thanks to maid and tuition for kids (very rough estimate)

Suspect none of you know how to calculate properly. 😂

Should include income tax and insurance premiums per year as fixed liabilities too !

0.92% on mortgage (100% CPF OA applied towards mortgage)

Car 0% house 2%