Too many financial terms, facts, and figures to keep track of these days? It’s easy to get lost in a sea of finance-related acronyms. Which terms and numbers should you know at all times? Here are three need-to-know finance numbers you should always have in mind.
- Credit Score
Short of your Social Security number, this might be the most important series of digits to ever be associated with you. Your credit score can be a make or break proposition when it comes to applying for a mortgage, to getting a low interest rate on a student loan, or even to being considered for a job. The good news is that if you have a low credit score, there are steps you can take to improve it and to make sure that you don’t adversely affect that number.
How much do you owe? How much interest are you being charged? What are the penalties or late fees? How many credit card companies or lenders do you owe money to? How long will it take you to pay off those loans? Knowing how much you owe is only the first step in understanding your debt. Once you have this information, then you can determine how you can pay back what you owe and how quickly you can do so. Also, you can take into consideration your debt options, like consolidating your debt.
- Tax Rate
Every year you’re faced with this question: which tax bracket do you fall into? Of the six brackets (ranging from ten to 35 percent), where do you fall? If you know your tax bracket, do you know that you don’t pay a flat percentage to the federal government? The tax brackets is a marginal rate, one in which the dollar is taxed, not an effective rate, which is the final amount you pay.
Mike Anderson of U.S. News & World Report has more financial figures you need to know, as well as further detail on the three we have listed here.