Benchmark Basics

BENCHMARKING BASICS GOAL! GOAL! GOAL! Most people have short-term mindsets, yet most financial goals are set for the diştant future. Benchmarks help us break down overwhelming long-term targets into smaller, more manageable milestones and help us track our progress along the way. Wherever you are in life, these guidelines can help you choose what type (and level) of financial planning is right for you. PLANNING VOUR RETIREMENT Saving your salary from last year times 11 sounds daunting at first (especially if you're just starting to save) but with the right tools you'll be on track to enjoy your golden years comfortably. 10% of your salary should go toward retirement if you're in your 20s (That means if you contribute 6% of your annual salary with a 3% employer match, you still need to save an extra 1% to stay on track) TO STAY ON TARGET, YOU SHOULD HAVE: 8x YOUR SALARY Зх 1x YOUR SALARY YOUR SALARY YOUR SALARY BY 35 BY 45 BY 55 BY 67 TIP: 55% of Generation Y have not started saving for retirement, so adjust your savings 70 rate accordingly if you start (or started) later than 25 SAVING UP FOR A DOWN PAYMENT A new car or house is within your reach when you break down that lump sum into smaller increments For a $25,000 down payment on a house five years from If your goal is a $2,000 down payment on a car one year from now, you need to save: now, you need to save: $167 PER MONTH $416.67 PER MONTH $38.89 PER $97.22 PER WEEK WEEK $5.56 BER $13.89 BER DAY DAY TIP: CONSIDER INVESTING VOUR NEST EGG TO GET TO VOUR GOALS QUICKER GETTING OUT OF HIGH INTEREST THE RED LOAN High-interest loans don't have to haunt you for the rest of your life when you commit to a realistic plan AVERAGE AMERICAN HOUSEHOLD DEBT IN 2013 $54,000 AGE THE AVERAGE AMERICAN EXPECTS TO BE DEBT-FREE 53 YEARS OLD WAYS TO PRIORITIZE PAY OFF HIGHEST INTEREST CARD FIRST YOUR PAYMENTS: • This reduces your total amount of interest the most PAY OFF SMALLEST DEBT COMPLETELY, THEN MOVE ONTO THE NEXT SMALLEST. This lets those first successes help you stay motivated to stay on track for the long term TIP: DON'T USE DEBT TO FINANCE DEBT REMEMBER: SUPER AWESOME BUDGET V. 10.2 Trying to tackle too much at once usually results in Commit to having a plan, but modify it when If you fall short or miss a payment, make it up as feeling out of control and overwhelmed your situation changes best you can and don't give up hope! FINDING THE RIGHT BENCHMARK IS NOT AN EXACT SCIENCE, BUT WITH A LITTLE WORK YOU CAN FIND THE DOLLAR AMOUNT THAT FITS YOUR GOALS AND LIFESTYLE. SOURCES: http://www.forbes.com/sites/baldwin/2013/10/01/formula-how-much-to-put-in-a-retirement-account/ http://money.cnn.com/retirement/guide/basics_basics.moneymag/index7.htm?iid=EL http://business.time.com/2012/07/17/retirement-savings-11-times-final-pay-is-the-new-target/ https://about.scottrade.com/news/releases/2011/New-Research-on-Retirement-Saving-Gen-Y-is-Generation-Procrastination.html http://www.statisticbrain.com/home-sales-average-price/ mint.com http://www.creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276.php# source%2045 http://www.sbwire.com/press-releases/debt-help-usa/help-with-debtisbwire-234237.htm http://themoney-expert.blogspot.com/2013/02/use-financial-management-as-debl.html