Everyday Documents

Home|Tools

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.7985

Hammer Financial Budget
SPENDING

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.

MoneySmart8273

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

No budget, and spending significantly more than income. (0 points)

No budget, and spending more than income. (1 point)

No budget, and spending slightly more than income. (2 points)

No budget, and spending equal to income. (3 points)

No budget, but not overspending. (4 points)

Loosely follows a budget, but overspending in most areas. Only a small amount of savings generated. (5 points)

Loosely follows a budget, but overspending in some areas. (6 points)

Loosely follows a budget, but not overspending and regular savings. (7 points)

Closely follows a budget, with regular savings. (8 points)

Closely follows a budget, with large savings on a regular basis. (9 points)

Closely follows a budget, with significant savings on a regular basis. (10 points)

DEBT

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

Large debt across a large number of lenders, and being pursued by lenders and/or taxation office. Large real estate debt that is unmanageable. (0 points)

Large debt across a large number of lenders, with large interest repayments. Real estate debt may also exist. (1 point)

Large debt with moderate interest repayments. Real estate debt may also exist. (2 points)

Large debt, but no large interest repayments. Real estate debt may also exist. (3 points)

Moderate debt, with large but manageable real estate debt. (4 points)

Moderate debt, with moderate but manageable real estate debt. (5 points)

Moderate debt, with small/no real estate debt. (6 points)

Small debt, with large but manageable real estate debt. (7 points)

Small debt, with moderate but manageable real estate debt. (8 points)

Small debt, with small/no real estate debt. (9 points)

No ongoing debt. (10 points)

RETIREMENT

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.

No retirement savings. (0 points)

Some retirement savings, but far behind based on age and stored in risky investments. (1 point)

Some retirement savings, but far behind based on age and stored in solid investments. (2 points)

Some retirement savings, slightly behind based on age and stored in risky investments. (3 points)

Some retirement savings, slightly behind based on age and stored in solid investments. (4 points)

Some retirement savings, but stored in risky investments. (5 points)

Some retirement savings, in solid investments. (6 points)

Good retirement savings for age, but stored in risky investments. (7 points)

Good retirement savings for age, in solid investments. (8 points)

Excellent retirement savings for age, in solid investments. (9 points)

Well ahead on retirement savings for age, in solid investments. On track for early retirement. (10 points)

EMERGENCY

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.

MoneySmart3468

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

You do not have an emergency fund in place. (0 points)

You have a very small emergency fund, equivalent to 1 to 2 weeks of expenditure. (1 point)

You have a small emergency fund, equivalent to 2 to 4 weeks of expenditure. (2 points)

You have a modest emergency fund, equivalent to 1 month of expenditure. (3 points)

You have a modest emergency fund, equivalent to 2 month of expenditure. (4 points)

You have an emergency fund, equivalent to 3 month of expenditure. (5 points)

You have an emergency fund, equivalent to 4 month of expenditure. (6 points)

You have an emergency fund, equivalent to 5 month of expenditure. (7 points)

You have a large emergency fund, equivalent to 6 months or more. (8 points)

You have a large emergency fund, equivalent to 9 months or more. (9 points)

You have a large emergency fund, equivalent to 12 months or more. (10 points)

REAL ESTATE

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.

No real estate owned and no down payment saved, and not in a position to start saving. Alternatively, you own a property but have not kept up with repayments and facing eviction. (0 points)

No real estate owned and no down payment saved, with no debts but no emergency fund. Alternatively, you own a property, but having severe difficulty keeping up with repayments. (1 point)

You are ready to start saving for a property, with debts under control, emergency fund in place, and regularly contributing to retirement savings. (2 points)

You have a small down payment saved. (3 points)

You have a moderate down payment saved, but not enough to actively start looking for a property. Alternatively, you have purchased a property, but having some difficulty keeping up with repayments. (4 points)

You have a large down payment saved, and actively looking for a property to purchase. (5 points)

You have purchased a property, with a repayment period of more than 20 years. Repayments are manageable.(6 points)

You have purchased a property, with a repayment period of more than 10 years. Repayments are manageable.(7 points)

You have purchased a property, with a repayment period of less than 10 years. Repayments are manageable.(8 points)

You have purchased a property, with a repayment period of less than 5 years. Repayments are manageable.(9 points)

You own a property outright. (10 points)

Hammer score



SPENDING

DEBT

RETIREMENT

EMERGENCY

REAL ESTATE


=

Instructions

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.

More information

Resources

  1. YouTube - Caleb Hammer

Spending

  1. MoneySmart - Track your spending
  2. Fool - How to set (and keep) a budget
  3. CommBank - How to adjust your budget when you need to

Debt

  1. MoneySmart - Get debt under control
  2. Fool - Good Debt vs. Bad Debt

Retirement

  1. MoneySmart - Prepare to retire
  2. Fool - A complete guide to planning for your retirement
  3. CNBC - Here’s how much money you should have saved at every age

Emergency Fund

  1. MoneySmart - Save for an emergency fund
  2. Fool - Can Crypto Serve as Your Emergency Fund?
  3. Commbank.com.au - How much do you need in an emergency fund?
  4. Yahoo! Finance - Here’s How To Build a 12-Month Emergency Fund
  5. Vanguard - What's the right emergency fund amount?

Real Estate

  1. MoneySmart - Buying a house
  2. CommBank - What is an offset account?
  3. Forbes - Is Buying A House A Good Investment?

Privacy

  • For privacy, financial data is not loaded to a server. All calculations are done locally on your device.

Disclaimer

  • 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.