Getting your Financial Life on Track Buffalo NY

If you want to get your financial life on track but don’t know exactly how to get there, following some simple benchmarks will help.  In fact, most of us have a financial plan in mind and manage to follow it, whether it’s saving a specific amount from our paycheck or keeping credit card debt within a certain range.  But the problem is we don’t know if the plan we’re following is the right one for us.  By using some benchmarks you can give yourself a quick financial check-up and find your strengths and weaknesses.  See how close you come to meeting the following benchmarks:



Cash Reserve

Have 3 to 6 months of living expenses set aside in a checking or savings account as your cash reserve.  Consider having 3 months set aside if there are two income earners in the family and 6 months if there is only one income earner.

Savings

Save 5% to 10% of your gross income.  This money should be deposited into a savings, investment, or retirement account.  Gross income is annual income before any taxes are paid.

Charitable Giving

Donate 5 to 10% of your gross income to charity.

Housing Debt

Housing debt expenses (including mortgage principal, interest payments, property taxes, homeowner’s insurance) should not exceed 28% of your gross monthly income.

Example: If you earn $50,000/year, your mortgage payments should not exceed $14,000/year or $1,167/month.

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