9 Year Mortgage Time for Your Financial Check Up
Have you noticed that your savings have become close to nothing these days? Remember you are in control of your finances, but here is a way to see if you are in check.
9 Year Mortgage helps bring some perspective to the table. Lets assume there are two families both with emergency savings of about 15,000 dollars. The question is, would this be sufficient funds to take care of the family in an emergency? That all depends on the family, their personal needs, monthly expenses, and how much was saved in other investments.
9 Year Mortgage has a 3 step analysis to see where you are at financially
- Make a balance sheet
- Make an income statement
- Overview your financial data
When creating your balance sheet you will want to take into account your assets and liabilities. This would include anything such as jewelry, cars, boats, furniture and so on. The following should be taken into account as you are creating this balance sheet:
- Retirement accounts.
- Non-retirement accounts.
- Primary residence.
- Real-estate investments.
- 529 plans
- School loans.
- Mortgage debt (primary residence).
- Mortgage debt (real-estate investments).
- Credit card debt.
- Car loan.
Now lets get down to your income statement! This would show your income and the expenses you had for a given time period. This statement helps to show where money was spent and how. If a persons income is exceeding their expenses the difference comes from the net income, otherwise they are at a net loss. There should be four expenses and it should look like this:
- Other sources of income.
- Mortgage (primary residence).
- Debt repayment (credit cards, school loans, car loans, etc.).
- Other expenses.
Once you have made your balance and income sheets, its time to analyze where you stand financially. Here are the most common ways to analyze these figures.
Having an Emergency fund ratio (liquid assets / monthly expenses). With this ratio you can determine exactly how much each months worth of expenses can be provided for. They can be taken care of through liquid assets, meaning assets can easily be converted to cash .
What If ratio (financial assets / monthly expenses). This is a situation where for instance, everyone in the family has lost their jobs and no one can find work. In a situation like this, liquid assets would not be as beneficial, we would be looking at financial assets instead which would include: retirement and other accounts that would be a good moving point for liquidating the account.
Mortgage to debt ratio (mortgage balance / yearly income). In this ratio, compare your mortgage debt with whatever your annual income is. Generally you wouldnt want mortgage debt to exceed 2.5 to about 3 times your annual income.Hopefully as you are nearing retirement this number should lower.
Total debt ratio (total debt / net worth). This ratio helps to compare your total debt (including mortgage) with your net worth.
Total debt payment ratio (monthly debt payments / monthly gross income). This ratio is used to compare your monthly debt payments (including mortgage) with your monthly income.
Liquidity ratio (liquid assets / non-mortgage debt). This ratio helps determine your ability to pay your non-mortgage debts.
9 Year Mortgage Advice
The goal here is to retire with at least 12 times what you bring in as your annual income. But this can vary on individual circumstances. Some may have higher goals than others or lower depending on what they make each year.
The ratios above can help determine personal financing and goals to set, as well as to see where you are at financially, where you should be and how to get there.
Will The 9 Year Mortgage Plan Work For Me?
To learn more about 9 Year Mortgage, and to find out if you qualify for the 9 Year Mortgage program. Find out how soon you could be completely debt free, including your mortgage, with the 9 Year Mortgage Financial Plan.
Find out what thousands of satisfied clients already know about taking control of their finances, and using the power of reverse compounding interest to beat the banks at their own game!
9 Year Mortgage representatives are standing by to answer all of your questions about our program, including how soon you will be debt free, and how much money you will save in interest! For more great money saving ideas visit 9 Year Mortgage on Youtube or go directly to the 9 Year Mortgage Money Saving Minute. 9 Year Mortgage recently launched their Eliminating Debt with 9 Year Mortgage site , which is also full of valuable, free information.