FINANCIAL FREEDOM. Achieved when savings are at least 25 times your annual expenses.
CREDIT AND DEBT
TOTAL DEBT. All debt payments, including mortgage, should be less than 36% of monthly gross income. CREDIT CARD BONUS. On rewards credit cards with an annual fee, look for a sign-up bonus value equal to three years or more of its annual fee unless it has especially valuable rewards or benefits. CARD USE. Keep credit card balances at 30% or less of their limits to avoid hurting your credit scores.
This article Handy Money Rules of Thumb for a Quick Financial Checkup was written by NerdWallet and was originally published by The Associated Press.
GREGORY KARP is a credit cards expert for NerdWallet. He previously worked at the Chicago Tribune and wrote two money books.
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