The Sunday Invest Section came out today with an interesting Financial Health Test to determine our financial health check conditions.
There are 5 sets of criteria that were used to test the financial robustness of a person's financial condition.
Let's go over them one by one.



1.) Total Debt Servicing Ratio (Monthly Loan Installment / Salary)
The debt servicing coverage ratio is a measurement of the cashflow available to pay current debt obligations for interest, principal and monthly installment payments.
This is a popular benchmark to measure the person's ability to produce enough cash to cover its ongoing debt payments.
For the majority of Singaporeans, most of the debt servicing is likely to come in the form of home mortgage, car and renovation loan. To ensure that Singaporeans are not over-leveraging, the TDSR ratio for property loans is set...