5 Financial Numbers You Must Track
Anytime is a great time to take financial inventory in your financial life. Keeping track of certain personal finance numbers is crucial to living a life of financial peace of mind.
These certain “numbers” are 5 areas of your personal financial life that you must monitor closely.
Before we get to these 5 important areas of your personal finances…
Let’s total up the amount of money you’re brought in this year. Include all of your paychecks, investment and rental income and any sales of assets.
Next add up all of your expenses. These would include all of your living expenses like food, gas, insurance premiums and others. Include in this total anything that is not a debt payment.
Now add up your total outstanding debt on things such as mortgages, credit cards, car payments and other loans.
Next you need to know your total payments made to debt balances for the year.
Finally, pull up your credit score from a site like CreditKarma.com or FreeCreditReport.com.
With all of this information, you are now better equipped to analyze your financial life and plan for this year.
Here is what you should be looking for…
Financial Number #1) Did you make more in 2015 than 2014?
Financial Number #2) Did you spend less?
Financial Number #3) Did you take on more debt?
Financial Number #4) Did you pay down your debt balance?
Financial Number #5) Is your credit score better than it was last year?
The key reason to track these numbers is to show improvement in each of these 5 areas.
If you made improvements in these 5 areas last year, great job!
If you did not make progress in these 5 important personal finance areas, you know what your job is for this year.
Aim to make 2016 your best year yet. You can do this by paying attention to these 5 important areas of your personal finances.
That means doing your best to earn more, to spend less, to not take on additional debt, to pay down your existing debt, and to increase your credit score.