Know Your Numbers, Know Thyself

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Numbers play an important role in our lives. Almost all the things we do involve numbers. Whether we like it or not, our life revolves in numbers since the day we were born.

Our world today would be lost without numbers. Without numbers people could not read clocks, measure anything, call anybody, and much more. Everybody has been put into a position where they were presented with different forms of data that must have been organized in order to make decisions pertaining to the situation.

Creating spending budgets, paying for groceries, buying things on sale, and cooking meals all have to deal with numbers in some way or another. One has to be able to measure out ingredients, count money, and determine limits when it comes to certain tasks like the examples above. People never realize how much numbers are around them until they take a step back and look.

We use numbers everyday whether we know it or not. There are numbers directly or indirectly connected to our lives.

Health Numbers

Knowing your blood pressure, cholesterol, blood sugar and body mass index (BMI) are extremely vital in determining whether you are at risk for developing major illnesses, such as heart disease and diabetes. If you know your numbers are out of the healthy range, you can take measures to get yourself back into good health.

Cholesterol

An unexpected heart attack may be caused by years of living with high cholesterol and extra fat stored in the body. Total cholesterol should be 200 or less. You should also ask your doctor what your HDL cholesterol (good) and LDL cholesterol (bad) levels are. Having high total cholesterol, high LDL or low HDL can put you at risk for a heart attack or stroke. Since there are no symptoms of high cholesterol, it is imperative that you know your numbers.

Blood Pressure

Blood pressure is the amount of force that it takes for your heart to pump blood through your body. High blood pressure, known as hypertension, increases your risk of heart attack, stroke and kidney disease. It can also cause damage to your brain, eyes and arteries. Blood pressure should be less than 120/80. Much like cholesterol, there are no symptoms of high blood pressure, so knowing your numbers is key to good health.

Blood Sugar

Glucose is sugar that is stored in the blood as your main source of energy. If your glucose levels are too high or too low, you can develop diabetes. Normal blood sugar level is under 100 when using the FPG test. Since diabetes can strike anyone of any age, it is essential that you know your blood sugar number. This is especially true if you experience any of the following symptoms of diabetes: frequent urination,extreme hunger, thirst, unusual weight loss, increased fatigue or blurry vision. If diabetes is left untreated, it can lead to heart disease, blindness, amputation of the arms or legs and/or kidney disease.

Body Mass Index (BMI)

BMI measures your weight in relation to your height. This measurement indicates whether your weight falls within a normal, healthy range. Your BMI should be less than 25. A BMI over 25 indicates that you are overweight and a BMI over 30 indicates that you are obese. Carrying extra weight can lead to high cholesterol, heart disease, diabetes and other chronic conditions.

Knowing our health numbers can reduce our risk of developing some preventable conditions. By taking control of our health, we will reduce your risk of developing illnesses, and will increase our chances of living a healthier, longer life.

Financial Numbers

As a coach and consultant in the financial industry, I have met with people from all walks of life. There are those who are book smart and street smart. But no matter how well educated or independent they may be, there are times when they neglect the financial area of their lives. The details of their finances tend to get overlooked. They do not know the specifics when we get into the details of their personal financial numbers.

There are important numbers to know off the top of our head regarding our money. Remember that knowledge is power. The more we know the better position we’ll be in to make confident, educated financial decisions.

Net Worth

Your net worth is your assets (what you own) minus your liabilities (what you owe). It’s important because it gives you a baseline to start with and the ability to make tangible goals. It’s also important because it puts your finances in perspective. You could have a large house, nice car, and an impressive social life, but if your mortgage is outrageous, your car payments are unmanageable and your credit card bills are making it hard for you to save, you need to take a hard look at the numbers on both sides of your balance sheet. Net worth allows you to see progress and equity.

Cash Flow

Your cash flow is your income minus your expenses. Your cash flow is essential to help you understand your spending habits, and it allows you to anticipate how your expenses are likely to change in future and how it can impact your future financial position. Hence, it is important to review your spending habits regularly to see where you can adjust to increase your cash flow.

Financial Ratios

Your cash flow is your income minus your expenses. Your cash flow is essential to help you understand your spending habits, and it allows you to anticipate how your expenses are likely to change in future and how it can impact your future financial position. Hence, it is important to review your spending habits regularly to see where you can adjust to increase your cash flow.

Some of the Financial Ratios to note:

Basic Liquidity Ratio

Basic Liquidity Ratio reflects the number of months you can sustain financially in the event that all existing sources of income are lost. It is ideal for you to have 3 to 6 months of monthly expenses as your emergency funds.

Basic Liquidity Ratio = Cash / Monthly expenses
Guideline: 3 – 6 months

 

Liquid Assets To Net Worth

This Ratio represents the percentage of your net worth that is in the form of cash/near cash assets. A minimum percentage of 15% is recommended to be adequate to meet short-term liquidity needs.

Liquidity Assets to Net Worth = Cash or cash equivalent / Net Worth
Guideline: Minimum 15%

 

Solvency Ratio

A person is considered to be insolvent (technically) if his total liabilities exceeds his total assets. The insolvency ratio illustrates your degree of exposure to insolvency.

Solvency Ratio = Net Worth / Total Assets
Guideline: More than 50%

 

Debt To Assets Ratio

This ratio measures a person’s ability to pay debts and is a broader measure of
liquidity. A ratio of not more than 50% is recommended.

Debt to Asset Ratio = Total Debts / Total Assets
Guideline: Less than 50%

 

Debt Service Ratio

Debt service ratio reflects your ability to pay off debts. Knowing this ratio allows us to understand your comfort debt level. It is recommended that you shouldmaintain the ratio well below 35%.

Debt Service Ratio = Total Annual Loan Repayments / Total Net Income Healthy
(Less CPF Contribution)
Guideline: Less than 35%

 

Net Investment Assets To Net Worth

This ratio compares your investment assets (excluding investment in home) with your net worth and it illustrates how well you are progressing towards your financial goals. You should be looking at a ratio of 50% and it should be increase as retirement approaches.

Net Investment Assets to Net Worth Ratio = Total Invested Assets / Net
Worth
Guideline: More than 50%

 

Savings Ratio

Savings Ratio is the cash surplus (or deficit) from your annual income and
expenditure statement.

Savings Ratio = Savings / Gross Income
Guideline: More than 10%

Knowing our financial numbers is a game changer. It moves us from being reactive to proactive. It helps clarify our financial past, present, and future so that we can track our progress, set achievable goals, and execute on reaching them. The better our grip on these financial numbers, the better the odds that we’ll reach our goals.

For a more in-depth analysis of your financial numbers, you can request a demo here!

Knowing our financial numbers is a game changer. It moves us from being reactive to proactive. It helps clarify our financial past, present, and future so that we can track our progress, set achievable goals, and execute on reaching them. The better our grip on these financial numbers, the better the odds that we’ll reach our goals.

For a more in-depth analysis of your financial numbers, you can request a demo here!

Personality Numbers

There are a number of personality profiling tools in the market.

Personality profiling provides a platform for individuals to explore their core personality, work preferences and strengths. It helps them identify how others may perceive them, how they will work with others, and where they will need to adapt to suit the team they lead.

I have learnt over the years the different personality profiling systems. While many people may know about DISC or Myers-Briggs Type Indicator personality assessment, they might not be familiar with another disposition test: Enneagram.

This personality test has nine basic types, and it can help you identify your hidden strength. At its core, the enneagram helps us to see ourselves at a deeper, more objective level and can be of invaluable assistance on our path to self-knowledge.

TYPE 1: THE PERFECTIONIST

Ones place a lot of emphasis on following the rules and doing things correctly. Type Ones fear being imperfect and can be extremely strict with themselves and others.

TYPE 2: THE GIVER

Twos want to be liked and find ways that they can be helpful to others so that they belong. This type fears being unlovable.

TYPE 3: THE ACHIEVER

Threes want to be successful and admired by other people, and are very conscious of their public image. Type Threes fear failure and not being seen as valuable by other people.

TYPE 4: THE INDIVIDUALIST

Fours want to be unique and to experience deep, authentic emotions. Type Fours fear they are flawed and are overly focused on how they are different from other people.

TYPE 5: THE INVESTIGATOR

Fives seek understanding and knowledge, and are more comfortable with data than other people. The biggest fear of the Type Five is being overwhelmed by their own needs or the needs of other people.

TYPE 6: THE SKEPTIC

Sixes are preoccupied with security, seek safety, and like to be prepared for problems. For the Type Six, the greatest fear is being unprepared and unable to defend themselves from danger.

TYPE 7: THE ENTHUSIAST

Sevens want to have as much fun and adventure as possible and are easily bored. Type Sevens fear experiencing emotional pain, especially sadness, and actively seek to avoid it by staying busy.

TYPE 8: THE CHALLENGER

Eights see themselves as strong and powerful and seek to stand up for what they believe in. The greatest fear of the Type Eight is to be powerless, so they focus on controlling their environment.

TYPE 9: THE PEACEMAKER

Eights see themselves as strong and powerful and seek to stand up for what they believe in. The greatest fear of the Type Eight is to be powerless, so they focus on controlling their environment.

Many other behavioral systems and personality typing models are heavily biased toward the “what” and the “how” of what you do. However, by contrast, the most useful thing about the Enneagram is its “ability to succinctly and accurately describe what motivates you and why you engage the world in your unique way of being.

The Enneagram has been useful in helping people identify not only their personality types, but also understanding what mental spaces people hide in when stressed or traumatized, what coping mechanisms they use, and why.

The Enneagram, in that regard, can help us figure out why certain things trigger us, understand that we all react disproportionately to different dynamics or emotions, and why that is.

It helps us identify our reactive behaviors in stress, and also gives us a choice. We don’t have to live in fight or flight; we can notice patterns, practice self-compassion, and make conscious choices we won’t regret.

Are you ready to find your number?

Junwen Chen

Junwen Chen

As a coach and consultant in the financial industry, I equip my clients with empowering knowledge that enables them to make wise, informed decisions across financial aspects of life. Here are 7 simple financial concepts that will help you create more wealth in your life and coaching business immediately.

https://protectsaveinvest.com/goalsmapping-ebook

Junwen Chen

Junwen Chen

As a coach and consultant in the financial industry, I equip my clients with empowering knowledge that enables them to make wise, informed decisions across financial aspects of life. Here are 7 simple financial concepts that will help you create more wealth in your life and coaching business immediately.

https://protectsaveinvest.com/goalsmapping-ebook

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