I was fortunate to receive valuable financial advice from a former bank MD, who shared three principles: 1. Avoid living in a company-provided house. 2. Avoid driving a company car. 3. Have a secondary source of income that generates cash equal to your full-time job. Your thoughts?
I think this would make more sense with reasons. Company house = less strain on my rental expenditure + repairs and maintenance (and possibly domestic workers bill) Company car = less strain on my insurance, service and other related costs (plus depreciation loss) These benefits would give one more free cash flow and greater potential to invest/save. Living recklessly with these benefits doesn't justify not wanting them when they're taken away and you have nowhere to start. It's a no from me.
Sylvester Mupanduki kindly share reasons for 1 and 2. Am sure you were given reasons as well haha.
Mark Mubvumba
2mo
I like the 3rd one. Diversify your income so that you are not solely dependant on your company as things can turn downways anytime. As for 1 and 2, I think the issue should be on dependency rather than reception. I would appreciate a Company House and Car whilst I save to build mine.
What are the logical reasons for not staying in a company provided house and not driving a company car?
Hillary Chakanga
2mo
I think the advise was based on the issue of reluctance. Coz, if one does not have thier own house, and use a company house, when one gets fired, they may find it difficult to adjust, but if one has his own house, and is offered a company house, that will be a plus. Coz they will rent out their private residence
Musa Lusaba
2mo
Valid point
It requires one who had both benefits and then later lost the job. Better judgement comes from reflection rather than mere thinking and conceptualising the scenario.
These are sound principles if presented alongside other options; otherwise, with the first two, you might miss an opportunity to benefit: 1. If you live rent-free, you can redirect those rental savings towards developing your own property. 2. You can allocate the money saved on insurance, maintenance, and servicing costs towards other investments. 3. I agree with the third point = the goal is multiple income streams. They don't necessarily need to be equal, but there should be many.
The point that the MD was making is that company assets make you relax and make you have the impression that all is well however for a person who has access to them can be a stepping stone
Investments & Markets Analyst
2moA few years at my former employer I was offered a company house. I turned it down and asked my then boss for some cash to go and roof my own house. I told him the money he would give me was just 3 months rental and without me in the house he can rent it out and get back his money back and lease it out for longer. It was a win win deal for both of us. Company car I would want because it's maintained by the company.