Staying on top of your financial situation at all times can be difficult to accomplish, but keeping track of some important financial numbers will provide you with a good look at how your finances are doing. Knowing where these numbers are on the financial scale will help you make the right decisions concerning your finances and alert you to any issues before they become unmanageable. You should be keeping track of these important financial numbers at all times.
The Percentage You Are Saving
If you can save a large percentage of your income, you will be much more likely to emerge from financial emergencies unscathed. Individuals that save a significant percentage of their income are able to purchase the things that they desire without using credit and eliminate the added expenses of interest payments and lending fees. At least 10% of your income should be saved for retirement and an additional 10% should be earmarked for your emergency fund. The more you can save, the better off your financial future will be.
Total Net Worth
Your net worth can help you keep track of your financial situation in a simple way. The variations in your net worth shows you spending trends and investment performance over time and identifies areas that may be causing financial distress, like too much debt or not enough saved. There are a number of financial programs that allow you to enter your bank account and credit information to automatically track your net worth on a daily, weekly, or monthly basis.
Your Credit Score
It is important to keep track of your credit score because it can affect numerous areas of your life. Your credit score determines how much you will be charged to borrow money in the future and it will cost you much more in interest if your credit score is low. Looking at your credit score on a regular basis alerts you to errors quickly and is important to correcting the issues in a timely manner.