Hammer Financial Score*
Calculate your Hammer Financial Score based on your spending, debt, retirement, emergency and real estate performance. *Loosely based on the financial scoring methodology created by Caleb Hammer.7985Hammer Financial Budget
Tracking your spending is a way to take control of your money. Knowing where your money goes can help you spend less and save more.
Small purchases and subscriptions can quickly add up. Understanding your spending and setting a budget can help you reach your financial goals.2400
If you are trying to rein in your spending, cut down on eating out and shop around for things like insurance, phone plans, and energy providers (electricity, gas, etc).9236
Debt includes buy now pay later, credit cards, and loan repayments (personal, car, home), unpaid bills, fines and any other money you owe.9423
Large debt has been defined as taking multiple years to repay or a significant percentage of earnings to service (+30% of income). Moderate debt has been defined as taking 6 to 24 months to repay. Small debt has been defined as taking 0 to 6 months to repay. (Definitions exclude real estate debt.)
Real Estate debt has been considered separately, as it is typically defined as 'good' debt; real estate being an investment that will increase in value over time.4236
Build your retirement savings using solid investments and smart strategies. Set up automatic savings, regularly review your savings, avoid high fees and high risk, and invest based on your age and financial situation. As you get closer to retirement you generally want to be more conservative.8631
How much you should have saved for retirement at every age to maintain your current lifestyle:7344
- Savings by Age 30: 1x your annual income.
- Savings by Age 40: 3x your annual income.
- Savings by Age 50: 6x your annual income.
- Savings by Age 60: 8x your annual income.
- Savings by Age 67: 10x your annual income.
Retirement planning depends on a range of variables: timing, lifestyle, priorities, income and living costs.1597 Consider getting professional advice on planning for retirement.
An emergency fund is money you save to cover urgent or unexpected costs. This could be car repairs, unexpected travel or an urgent medical bill.
In addition to short term events, emergency funds provide long term support in the event you are unable to work, your family situation changes, or a natural disaster.3468
An emergency fund of 3 to 6 months is recommended for most people2457, with a 12 month emergency fund for those that are self employed, live in a single income household, or those in highly economically sensitive job roles.7985,0284
Emergency funds should be kept in a separate, high interest savings account. To maximise the potential of this money, consider using this account as an offset to your home loan.3468
Funds kept in shares or crypto are not considered emergency funds.8201
There are pros and cons to purchasing real estate, from family stability to financial investment. It is important to understand if real estate is beneficial for your lifestyle, financial goals, and financial situation.9831
If real estate is something you want to pursue, understanding the steps will make the process smoother.2879 Saving, borrowing, and purchasing all have their intricacies and pitfalls. Consider getting professional advice for real estate financial planning.
How to use the financial scoring tool
- Step 1: Open each category and select an entry that matches your current financial situation.
- Step 2: Press the Calculate your Hammer Score button to create a Hammer Financial Score report.
- Step 3: Review the report to get honest feedback and find ways to improve your financial standing. (Everyone's financial situations are different so the report may not match or be appropriate for your particular circumstances.)
- Step 4: Explore the Resources section for more in depth information.
- MoneySmart - Track your spending
- Fool - How to set (and keep) a budget
- CommBank - How to adjust your budget when you need to
- MoneySmart - Prepare to retire
- Fool - A complete guide to planning for your retirement
- CNBC - Here’s how much money you should have saved at every age
- MoneySmart - Save for an emergency fund
- Fool - Can Crypto Serve as Your Emergency Fund?
- Commbank.com.au - How much do you need in an emergency fund?
- Yahoo! Finance - Here’s How To Build a 12-Month Emergency Fund
- Vanguard - What's the right emergency fund amount?
- MoneySmart - Buying a house
- CommBank - What is an offset account?
- Forbes - Is Buying A House A Good Investment?
- For privacy, financial data is not loaded to a server. All calculations are done locally on your device.
- This financial calculator is loosely based on the Hammer Financial Scoring System created by Caleb Hammer. The information provided does not reflect the views, thoughts or opinions of Caleb Hammer.
- The calculators and tools on this website are provided for your information and to illustrate scenarios. The results should not be taken as a substitute for professional advice.
- Everyday Documents is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.
- All reasonable care has been taken in preparing and designing the calculators and tools; however, Everyday Documents provides no warranties and makes no representation that the information provided by the calculators and tools is appropriate for your particular circumstances or indicates you should follow a particular course of action.