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The Federal Reserve Bank of St. Louis recently concluded a 20-year study involving 38,385 families. (Click here to view.) They discovered that the answers to five simple questions determined whether those families were able to improve their financial status and grow their wealth over time. As you consider your own finances, it may be useful to focus on these five questions:

1. Did you save any money last year?
2. Did you miss any payments on any obligations in the past year?
3. Did you have a balance on your credit card after the last payment was due?
4. Including all of your assets, was more than 10 percent of the value in liquid assets?
5. Is your total debt service (principal and interest) less than 40 percent of your income?

If you answered yes to 1, 4 and 5, and no to 2 and 3, you received a perfect score! You're on the right track… keep doing what your doing. But if you answered no to 1, 4 or 5, or yes to 2 or 3, you've just identified the area(s) of your financial health that need improvement!

Please contact me and let me know if I can help in any way as you seek to improve any of these areas.