I’m currently 37 years old and the first time that I heard anything about financial numbers was about a week ago. I’m not gonna lie I caught a little attitude at the time but I couldn’t react to it because I didn’t know what the heck “personal financial numbers” were.
We always hear about saving money, have an emergency fund, budgeting, tithing, being a wise spender but never “personal financial numbers”. So with my eyes rolling and full sista girl mood in swing I decided to google the meaning and boy was I in for a rude awakening.
So in my little research I found about 10 there could be more but I am going to tell you all about 6 of them that I feel are basic and everyone just about has happening in their life for the most part.
6 Main Personal Finance Numbers
1. Credit Score
Most of us already know and understand good credit vs. bad credit The sad thing is we stop at the credit and think we are really doing something when there is so much more. Especially in the African American community. You hear a lot of people say “I got good credit” but they don’t have any assets? Hmm are they really doing something or just talking? After reading this post your gonna be wanting to know more than just whether or not someone has good credit and have more knowledge on what you personally have going on financially across the board.
This would be money you make at your current job. Know your salary because it’s important to know how much you make at the end of each year.
Money that you spend, the only way to know this is to keep track of receipts, balance your bank account and add them up monthly. You have no idea how much money that is wasted throughout the month until you track what you spend
These are your credit cards, personal loans, pay day loans school loans, money I borrowed from a friend loan. FACE IT!! It’s money you know and you need to know how much your in so that you can plan a way to get out of debt.
5. Net Worth
This is the funny part. So many people think that are all that in a bag of chips. You could be a millionaire and by the time you figure out your net worth you just might not be worth nothing but $1000. Did you know on average a single African American woman’s net worth is $5.00. Excuse me ladies but we have to do better!! How do you come up with your Net Worth Value? Add up everything of value (investments, retirement, owned property, savings, anything you own of value) subtract it by your debts ( Stuff you owe) what number you have left is your net worth. Mine wasn’t pretty but it also wasn’t a lousy $5.00!! I’ve clearly got to do better!
6. Saving Rate
The saving rate is the percentage that expresses the amount of income out of a person’s after-tax income. This is still ever so unclear to me but I do know the average request to save is generally 10-15% of your income for retirement. Once I get more information on this I’ll blog some more about the saving rate.
If your feeling anything close to what I was feeling I’m sure you have a brown paper bag to your mouth inhaling and exhaling all the financial foolishness that you’ve done throughout the years. Well breathe it out and get over it. Today is the day to start trying to make a change! It takes one step at a time, don’t try to pressure yourself to get things all figured out in one day just make a point to start somewhere.