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3 Key Numbers to Know About Your Finances

Your financial health matters, just like your physical health. While you may visit a doctor at least once a year, when was the last time you had a financial check-up?

A financial check-up gives you a clearer picture of where you currently stand. It will help you understand what's going well—and which areas could use a little improvement.

As you assess your financial situation, here are three key numbers to look at:

What's your debt-to-income ratio?

Your debt-to-income ratio is one way to measure your financial wellbeing.  It's among several factors lenders look at when you apply for loans and lines of credit.

To calculate your debt-to-income ratio, take the total amount you pay in monthly debt payments and divide it by your monthly income before taxes. A good place to start is by filling out a debt inventory worksheet​.

In general, the lower your debt-to-income ratio, the better your chances of qualifying for loans and lines of credit will be. If you're concerned that your debt-to-income ratio is too high, don't worry—there are steps you can take to improve it. Wright-Patt Credit Union (WPCU) is here with tools, resources and support to help you borrow smarter and get ahead of debt!

What's your savings rate?

Your savings rate is the percentage of your monthly income that you're putting towards savings and investments, like your retirement fund. The higher your savings rate, the more you're saving each month!

To focus your efforts, try creating savings goals that are SMART: specific, measurable, action-oriented, realistic and timely. Here's an example of a general goal versus a SMART goal:

General savings goal: “I want to save more money this year."

SMART savings goal: “I will put $100 in my savings account each payday to have $2,400 in my vacation fund by next year." 

How much you need to save depends on your goals and your timeline for reaching them. To organize your goals, check out our Savings Goal Planner worksheet

What's your credit score?

Finally, your credit score is a vital part of your financial health. This is a three-digit number that represents your creditworthiness. It's one of the first things lenders look at when evaluating you for credit cards, mortgages and loan approvals.

The FICO®​† credit score is the type of credit score used by most lenders. These scores range from 300 to 850, and the higher the score, the better. FICO scores are calculated based on the importance of five factors:

  • Payment history on loans and credit cards (35%)
  • Total debt and amounts owed (30%) 
  • Length of credit history (15%)
  • New credit accounts (10%)
  • Credit mix (10%) 

If your credit score isn't as high as you'd like it to be, there are things you can do to boost your score over time. One essential step to take is checking the accuracy of your credit reports, which detail your credit activity and history. You can access free copies of your reports at

Do you know your numbers?

Take some time to “know your numbers" and get a clearer picture of your financial outlook. Once you know where you stand, you can take action to improve your situation and stay on track with your goals!

No matter where you are on your financial journey, WPCU is here to help you learn how to plan, save, borrow and spend every step of the way.

Are you ready for more helpful money advice? Take our free, 2-minute FinHealth Check​ and receive a few tips to move your financial journey along!

FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries. Source =