As we step into February, do you have a checklist of what you would like to achieve ? Just like Alfred, an engineer who has to work offshore for half a year whereas the other six months at home. Let’s have a quick glance of Alfred’s and his wife, Margaret’s profiles.

Alfred and Margaret have no child at this moment.

Alfred’s monthly salary is RM13,000 .To break down even more details, after deducting his EPF contribution, income tax and Socso, Alfred’s net income is RM9,500. On the other hand, he also rents out a single-storey terraced house for a monthly rental of RM650.

Alfred desires to purchase a new car that costs RM 100,000 . Also, he wants to buy a new condominium at RM 250,000 as an investment and to receive passive income from its rental.

Is it possible for Alfred to purchase these two expensive assets at the same time and afford the monthly installments? Let’s take a look of Alfred’s current net worth position.

Precisely, Alfred’s total net worth currently stands at RM 350,000.

In order for Alfred to successfully obtain the loans, he needs a healthy debt service ratio. At 30.4%, it is satisfactory and allows him to take the loans successfully.

With that, Alfred’s monthly payments would sum up to RM2,609 per month.

Last but not least, let’s analyse Alfred’s cash flow.

If you are Alfred, at this financial status, do you think you can take up new debts to afford a new car and new condominium ? What are the strategies that you can make in order to make it happen? Well, let’s take a moment and ponder about it.

Feel free to comment below of what you think that might be the useful strategies in Alfred’s case.

Stay tuned to our post on Friday ! Hope you have a fun day at work !

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  1. Pingback: The answer is a YES ! - CC Advisory

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