Five numbers you must know to be financially smart

I think that keeping track of your short and long term financial goals does not need to be overwhelming. 


I want to give you a list of 5 numbers you need to know to be financially smart and savvy




1. Your fighting number, this is how much you need each month to cover your bare essentials and nothing else

2. Your comfort number, this is how much you need to not just survive but thrive and really enjoy life doing the things you want to do

3. Your purpose number, this is how much you need to support not just yourself but create an impact on the world. This is money you spend on causes that will outlive you and be your legacy

4. Your retirement number, as per the name, this is how much you need to retire. A general rule of thumb is to have a total retirement port-folio that cover your annual expense in just 4% of the total portfolio. This approach takes advantage of the fact that a good investment portfolio will grow by at least 6% each year to cover your expenses.

5. Last but not least, you need to know your net worth. In simple terms, this is the difference between everything you OWN versus everything you OWE

Let me know how this helps, come share it in 

The Female Personal Finance Space

Lots of Love

Trust

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