MoneySense wrote an interesting article in their summer 2009 issue regarding key financial figures everyone should know. Here’s the gist of it:

 

• 26% equals the return on investment you’ll get by paying off your credit cards

 

• 50% of your working income equals how much you need to have coming in each year to enjoy a nice retirement

 

• 4% equals how much of your initial portfolio you can safely withdraw each year after you retire

 

• $500,000 is plenty for most middleclass Canadian couples to save for retirement

 

• 32% of your gross income equals the maximum you should spend on housing costs

 

• 8% of your gross income equals the maximum amount of your income that should be eaten up by required payments on credit cards and other consumer loans

 

• 5% a year equals the maximum you can reasonably expect to earn from a balanced investment portfolio

 

• 750 equals the credit score you should have if you want to get a loan

 

• 2 times the sticker price of your new car is what the vehicle will actually cost you to operate during the first five years of ownership

 

• $10,000 is how much money you’ll need to earn each year on top of your student loans to pay them off in 10 years