Personal Finance Score Survey?

[blueray007]

Saw this post from Investa: What's your PF score and I'm wondering if we should make a survey for peeps here in the sub? Maybe we can modify the items first or add more details and choices before we start? If you have any suggestions, you could comment them down below.

Here's the list they got:

• Saving Regularly +1
• Has Emergency Fund +2
• Has Investments +2
• Pays Bills +1
• No Debt +2
• Can Afford Vacation +2
• Purchased Real Estate +1
• Already Insured +2
• Have a Side Hustle +1
• Long-Term Savings +2

We could also do this yearly and see whether the reddit PH demographic is improving or not. What do you guys think?

\* Proposed changes

A. Saving Regularly:

Has Savings Rate of 15-30%
1 point

Has Savings Rate of 31-60%
2 points

Has Savings Rate of 61% or more
3 points

B. Has Emergency Fund:

Has less than 6 months Emergency Fund
1 point

Has 6 months Emergency Fund
2 points

Has more than 6 months Emergency Fund
3 points

C. Income Generating Assets (Investments) Net Worth:

100k to less than 500k
1 point

500k to less than 1M
2 points

1M to less than 10M
3 points

10M to less than 50M
4 points

50M or greater
5 points

D. Pays all bills on time (no penalties): 1 point

E. No Debt except Home Mortgage: 2 points

F. Has a comfortable lifestyle:

Food, shelter, clothing not an issue
1 point

Has budget for all occasions
1 point

Has budget for vacations ( at least once a year )
1 point

Can replace broken furniture/appliances if needed immediately
1 point

G. Personal Home:

Still renting and has budget for rent for a year at least
1 point

Still paying mortgage for home
2 points

Fully owns home
3 points

H. Insurance:

Has health card coverage
1 point

Has critical illness insurance
1 point

Has life insurance
1 point

I. Side Hustle / Extra Source of Income:

1 side hustle / extra source of income
1 point

2-4 side hustles / extra sources of income
2 points

5 or more side hustles / extra sources of income
3 points

J. Passive Income > Active Income (congrats!): 5 bonus points

K. Long-Term Savings / Funds for Big Events:

Has wedding fund or already married/divorced; or no plans ( single for life )
1 point

Has kids college fund; or no plans ( no kids for life )
1 point

Has car fully paid; or no plans to own one
1 point

Has funeral plan
1 point

Has estate planning prepared
1 point

 

[hbgcamila]

@blueray007 "Has investments" and "Long-term savings" should have multiple tiers depending on how much you have.

Having 100k pesos should not have the same score as having 10M pesos.

 

[blueray007]

@hbgcamila I agree, yes they should be tiered. But only up to a limit. Like 50M or more should be in the same option and have the same points. Of course having 100M, 200M or even a billion is a good thing but I think it's more than enough for everyone.

Should probably be Income generating asset net worth with tiers instead of just "Has Investments"

 

[an8id]

@blueray007 I guess clarification of terms would also be good. What's saving regularly? I put something in at the end of every month? Or overall I dont set aside every month but generally get the same percentage saved?

Long term savings, how long is that? Wouldnt any cash being set aside for the long term future be better off in a low risk investment? Or is this for big purchases like a car and a house?

 

[blueray007]

@an8id Yeah, it could use some changes for the terms. With regards to saving regularly, it probably means overall, could be monthly or yearly or whatever as long as the total is considered. We could also think of it in tiers, so instead of:

Saving Regularly +1

it could be:

• Has Savings Rate of 15-30% - +1
• Has Savings Rate of 31-60% - +2
• Has Savings Rate of 61% or more- +3

Same thing with emergency funds, instead of:

Has Emergency Fund +2

it could be:

• Has less than 6 months Emergency Fund - +1
• Has 6 months Emergency Fund - +2
• Has more than 6 months Emergency Fund - +3

Long-Term savings could probably be like MP2 or Bonds. Could be used for weddings, kids, education, car, etc.?

Probably list them down specifically too, like:

• Has wedding fund or already married or no plans - +1
• Has kids college fund or no plans - +1
• Has car fully paid or no plans - +1

Purchased Real Estate could also be specified:

• Still renting - 0
• Still paying mortgage for home - +1
• Fully owns home - +2

Then we could move Real Estate investments in another category:

• Owns 1 income generating Real Estate (not own home) - +1
• Owns 2-4 income generating Real Estate (not own home) - +2
• Owns 5 or more income generating Real Estate (not own home) - +3

\ These are just some suggestions off the top of my head and not final. Looking forward to what you guys think.*