Numbers That You Deal With In Your Financial Life

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Category: Blog
Created on Saturday, 13 May 2017 Published Date Written by Catherine Molski

There are various numbers or type of money involved in finances. Often people get confused about the different numbers they are dealing with. Learn about Discover offers you an insight into the numbers in your financial life. You need to be clear on the various numbers so that you can understand your financial health. It is essential that you're aware of the different numbers so that you can run your business efficiently. These figures help you to know what is happening in your business. You can visit the website www.businessinsider.in to know about the importance of certain numbers that decides your financial health.

 

 

The knowledge about the numbers helps you to deal with the money. The numbers are categorised based on the way you use your money. The article talks about the five different types of money you deal with in your financial life.

 

The Money You Bring In

It is the amount you bring in every month. Many people are not aware of their exact salary. They don't remember their net and gross income. It is important to know about this number as it helps to maintain a good budget. You can know about the complete details of your salary in the pay slip issued. The pay slip or pay stubs lists the money which comes in before and after tax payments and also gives an overview of the amount you're contributing for your retirement.

 

The Money Going Out

You need to have a note of the money which is going out. These are the money you spend from your pocket. You need to have a complete knowledge about your expenses so that you can manage your financial wellness. You also should be aware of where your money is going. It is the knowledge about how your money is spent and the purpose of spending it.

 

The Money You Owe

You need to track your debts so that you can manage your debts efficiently. People make use of the debt to income ratio to know whether they can manage their available debts. You can look for the debt to income ratio in the credit report offered by certain bureaus. You can also view your credit report status from certain free sites available on the Internet. See that you maintain this ratio as low as possible. You can do this by paying your monthly instalments regularly for your loan.

 

Know Your Net Worth

This is a very significant number you need to calculate. It is nothing but the difference between the money you own and the money you owe. The money you own are the bank accounts, investments made and the property you possess. You need to calculate your owes by summing up all the debts you hold. The net worth can give you an idea about your financial status. Check if the net worth is always positive.

 

Know Your Savings

It is vital that you save some money for your future. Savings serve as motivation during your tough times. You need to have a track of your savings so that you can make use it as an emergency fund or during your retirement.

 

The above are the most important numbers you need to be aware of about your finances

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