Are you financially healthy?

Posted on March 16, 2012. Filed under: Betty Kittell, NMLS #501059 |

It’s hard to believe but we are already three months into the New Year!  Most people have started their New Year’s resolution to get physically healthy, but have you thought of getting “financially healthy”?

This is similar to the goals which we receive from our employers at the beginning of each year. You sit down with them, discuss the past year and set goals for the upcoming year.  Having a personal financial goal works the same way. Looking at your debts and getting familiar with your financial position is an important task. Becoming aware of your debt to income ratio, setting a monthly budget, reducing your debt and saving for the future are necessary steps for financial health.

Calculating your debt to income ratio can be done by adding up all of your monthly expenses such as your mortgage payment (including principal, interest, taxes and insurance) and home equity loan payments, car loans, student loans, your minimum monthly payments on any credit card debt and any other loans that you might have.   Take this amount and divide it into your monthly income.  The debt to income ratio should not exceed 25-30%.

Denmark State Bank has many tools to help you.  Debt consolidation loans, on-line banking and Bill Pay are just a few.  You can also visit any one of our six banking locations to personally talk to us to “get financially healthy” in 2012.

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