Wednesday, August 13, 2014

4 Ways to Measure your Financial Health

So you finally paid off your credit cards and you have a bit of money in the bank - but are you financially healthy? If you want a true reading of your financial health, you have to look beyond the obvious and dig a little deeper. Here are four numbers that can help you determine where you stand:

Credit Score
In Canada, a Credit Score over 600 is considered "good", while anything over 750 is considered "excellent". To uncover your score, you can purchase an online report from one of Canada's credit bureaus, Equifax or TransUnion.

Retirement Savings
Your retirement nest egg obviously depends on the type of retirement you hope to have. There are plenty of retirement calculators and articles out there to help you determine what your end number should be. Work backwards from there to see if you're on the right track.

Emergency Savings
Anything you put aside in an emergency savings fund is better than nothing, but most experts suggest saving between three and six months' worth of living expenses to safeguard your household against such factors as unemployment, injury or illness.

Net Worth
When you take your assets and subtract your debts, what are you left with? If the answer is "nothing", this is an area to work on!

If, after looking at these numbers, you're lacking in a few areas—that's okay! This exercise is simply to determine where you stand, and help you devise a plan of action for improvement. Sometimes your home can speed up this plan of action. Feel free to give me a call to see how you can use your home to improve your financial health.

1 comment:

  1. Nice blog, thanks for sharing the information. I will come to look for update. Keep up the good work.
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