The Financial Perks Of Certain Fields!

mortgage-rateWhen you work in certain fields, you know that there is a higher potential for income. Naturally, when you earn more money, you are contributing to a higher net worth and a more financially free life. However, you want to know how all of these tie in together so that you can best determine things like your savings for optimal budgeting.

Your Career and Your Average Net Worth

Common methods to increase net worth include savings and investments, real estate and working to avoid debt. Since your career has a major impact on your ability to pay off debt, purchase real estate and save money, it has an indirect role in increasing your net worth. If you want your career to factor into your net worth in an impactful way, you want to pursue a career with a high annual income.

While the highest paying jobs can change each year, they remain generally the same. For 2014, the following are the highest paying career fields:

a)     Surgeons

b)     General medicine doctor

c)     Psychiatrist

d)     Orthodontist

e)     Dentist

f)      Petroleum engineer

g)     Air traffic controller

h)     Pharmacist

i)      Podiatrist

j)      Lawyer

Of the careers on this list, surgeons earn the most and lawyers earn the least. All of these professions earn more than $100,000 per year.

Using a Net Worth Calculator

You can use different calculators to determine how you stand financially and to figure out what you can afford for large purchases. A net worth calculator can determine what you are worth after subtracting any liabilities. This helps you to figure out how much you have that is not tied up in various debts.

How Your Career Affects Your Mortgage

When you get a mortgage, you need it to fit into your budget so this means that you want to get a low interest rate. Your credit score plays a major role, but your income is also important because lenders want to see that you make enough to make your monthly payments without any issues. Lenders will look at your income and your monthly debt to create a ratio. For example, if your monthly debt is $1,200 per month and your monthly income is $2,000 per month, this leaves you with $800.00 for entertainment and other non-monthly expenses. Unless your mortgage was very low, lenders may not see this as a favorable ratio.

In general, you want a solid ratio and a credit score of at least 740 to get a good interest rate. How much you need to borrow and your personal assets also factor in.

What you do for a living impacts all areas of your life and it can also determine the type of mortgage you are eligible for. It may also affect things like your rate and other terms. When you are doing your homework for a new mortgage, make sure that you are mindful of the impact that your career has so that you go into the lender’s office fully prepared.

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