Pull out the calculator and get set for ....
A Test On The Economic Treadmill!
1. Consumer Debts: Add up the total interest paid this year on your revolving charges, personal car loans and other personal liabilities. (this does not include your mortgage, business or investment indebtedness, or loans for your kids.) Divided by your annual income. The quotients the percent you're being penalized for living beyond your means.
Interest ($5000) ÷ Income ($75,000) x 100= 6.7%
Scoring
0-1% Gold Star
1-3% Typical for middle income with new cars
3-5% You're living beyond your means. Its time to cut up the credit cards.
5-10% Danger Zone. Lets discuss major changes to make.
10%+ What do S&Ls, Eastern Airlines and Banana Republic have in common?
2. Personal Savings: Take the total amount of cash stashed this year permanent savings such as IRAs, SEPs, 401k plans, and insurance premiums paid on any whole life policies, and divide by your annual income. (Christmas clubs and vacation funds do not count.)
Savings ($3,500) ÷ Income ($75,000) x 100= 4.7%
Scoring
0-1% Research nearby soup kitchen locations
2-4% You're headed the right direction
5-9% Celebrate delayed gratification
10% Optimum for long-ten-n goals
11-19% Playing catch-up or hoarding
20%+ Is Ebenezer Scrooge a relative of yours?
3. Value of personal residence: Measure the fair market value of your house as a percentage of your annual income.
House ($100,000) ÷ Income ($75,000) x 100= 133%
Scoring
0-90% Kind of cramped, eh?
90-125% Time to trade up
125-150% Start looking
150-250% Just right
250%+ Consider renting out rooms
4. Liquidity: Measure your liquidity as a percentage of total income. Liquidity is savings earning interest while stored in short term investments, such as CDs, U.S.Savings Bonds, Guaranteed insurance contracts (GECs) and bank accounts.
Short term savings ($3,000) ÷ Income ($75,000) x 100=4%
Scoring
0-10% You're plagued by short term cash flow crisis
10-30% Starved for liquidity
30-45% Optimum for employed people
45-60% Target for self-employed
60-90% Comfort zone for retirement folks
90%+ You're either very well off or lacking diversity
5. Fully Funding Your Pension: Add up all the contribution to retirement plans you made last year (401 Ks, 403Bs, IRAs, Roth IRAs, SEPs, SIMPLEs). Divide by your annual income.
Total pension contribution ($2,000) ÷ Annual income ($75,000) x 100=3%
Scoring
0-1% Um, Virginia, there really isn't a Santa Claus
2-5% You can expect to make major lifestyle adjustments at retirement
6-10% You're right on track
10%+ You're either self-employed, playing catch-up or deferring too much life to retirement
A Test On The Economic Treadmill!
1. Consumer Debts: Add up the total interest paid this year on your revolving charges, personal car loans and other personal liabilities. (this does not include your mortgage, business or investment indebtedness, or loans for your kids.) Divided by your annual income. The quotients the percent you're being penalized for living beyond your means.
Interest ($5000) ÷ Income ($75,000) x 100= 6.7%
Scoring
0-1% Gold Star
1-3% Typical for middle income with new cars
3-5% You're living beyond your means. Its time to cut up the credit cards.
5-10% Danger Zone. Lets discuss major changes to make.
10%+ What do S&Ls, Eastern Airlines and Banana Republic have in common?
2. Personal Savings: Take the total amount of cash stashed this year permanent savings such as IRAs, SEPs, 401k plans, and insurance premiums paid on any whole life policies, and divide by your annual income. (Christmas clubs and vacation funds do not count.)
Savings ($3,500) ÷ Income ($75,000) x 100= 4.7%
Scoring
0-1% Research nearby soup kitchen locations
2-4% You're headed the right direction
5-9% Celebrate delayed gratification
10% Optimum for long-ten-n goals
11-19% Playing catch-up or hoarding
20%+ Is Ebenezer Scrooge a relative of yours?
3. Value of personal residence: Measure the fair market value of your house as a percentage of your annual income.
House ($100,000) ÷ Income ($75,000) x 100= 133%
Scoring
0-90% Kind of cramped, eh?
90-125% Time to trade up
125-150% Start looking
150-250% Just right
250%+ Consider renting out rooms
4. Liquidity: Measure your liquidity as a percentage of total income. Liquidity is savings earning interest while stored in short term investments, such as CDs, U.S.Savings Bonds, Guaranteed insurance contracts (GECs) and bank accounts.
Short term savings ($3,000) ÷ Income ($75,000) x 100=4%
Scoring
0-10% You're plagued by short term cash flow crisis
10-30% Starved for liquidity
30-45% Optimum for employed people
45-60% Target for self-employed
60-90% Comfort zone for retirement folks
90%+ You're either very well off or lacking diversity
5. Fully Funding Your Pension: Add up all the contribution to retirement plans you made last year (401 Ks, 403Bs, IRAs, Roth IRAs, SEPs, SIMPLEs). Divide by your annual income.
Total pension contribution ($2,000) ÷ Annual income ($75,000) x 100=3%
Scoring
0-1% Um, Virginia, there really isn't a Santa Claus
2-5% You can expect to make major lifestyle adjustments at retirement
6-10% You're right on track
10%+ You're either self-employed, playing catch-up or deferring too much life to retirement
30345 US Hwy 19N, Suite M - Clearwater, Florida 33761 - (727) 725-3336
