Personal Finance Numbers To Know
When your doctor conducts a physical, one of the goals is to measure your cholesterol levels, blood pressure, blood sugar, and body mass index among other indicators. Each of these numbers is an indicator of your overall health, and numbers that are “out of range” could indicate risks down the road.
With personal finance, knowing your numbers can be important for your long-term financial health. Here’s a short-list of some financial numbers to know…
Your family’s overall net worth.
Your net worth is the sum of your assets (home, retirement accounts, investments) minus your liabilities (debts, such as mortgage or credit cards). Think of your net worth as a yardstick to measure your progress toward your financial independence. If you’re uncertain about how to calculate your net worth, we can help. We have tools that can show you how to measure your net worth and chart progress toward your financial goals.
Your Credit Score
Your credit score is always a three-digit number, usually on a scale of 300 to 850. A higher credit score can increase a lender’s confidence that you will make payments on time, and may help you qualify for lower interest rates. If you’re considering a purchase but are concerned about your credit score, please let us know. There are a number of ways to potentially boost your credit score, and we may have some resources that can help you.¹
Your family’s total credit card debt.
Your credit card balance is the total amount of money on your credit card at any given time. There’s no good or bad amount, but for comparison purposes, the average credit card balance for a person between ages 50 and 64 was $7,200 in April of 2023. As inflation has increased in recent years, some consumers have relied on their credit cards to help manage their budgets.²
Mortgage balance and interest rate.
For most people, housing is their #1 monthly expense. So, for homeowners, it’s critical to know your mortgage balance and the interest rate you are paying on the loan. In Indiana, for example, the average monthly mortgage payment is $1,771, which is just less than 26% of a household’s monthly income.³
Your full retirement age and expected Social Security benefit.
The current full retirement age is 67 for people turning age 62 in 2023. The Social Security Administration website allows you to create an account so you can see your personalized monthly retirement amount, which will depend on the age your start drawing benefits.⁴