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