The Impulse Index is a number between 0 and 200 designed to help people quickly and easily assess how close they are aligned with their budget goals over the past 30 days.
The user's general goal is to get their rating as close to 100 as possible. That means your spending and goals are in balance.
0-39 | Major Underspend Your spending is much lower than your set budget. |
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40-79 | Slight Underspend Your spending is slightly below your set budget. |
80-119 | On target Your spending is on target with your set budget. |
120-159 | Slight Overspend Your spending is slightly above your set budget. |
160-200 | Major Overspend Your spending is much higher than your set budget. |
The rating consists of 11 different common spending categories, which include the following: Insurance, Housing, Utilities, Medical & Healthcare, Transportation, Miscellaneous, Recreation & Entertainment, Fees, Personal Spending, Food, and Saving, Investing, & Debt Payments.
If your score goes above 100, you are spending more than your set budget. You may need to adjust your spending goals. Talking to a financial advisor can help you tailor realistic financial goals. Yes, initially, talking to a financial advisor may cost money, but you could save and even invest more at a faster rate than going at it alone.
You might need to reassess your spending goals. Nothing is wrong with spending conservatively. At the same time, you might need to reevaluate your spending goals to make sure the money you have in reserve is put to work (aka investing), or you might need to reward yourself by purchasing something to feel accomplished for watching your spending habits. Sometimes rewarding yourself after making spending milestones motivates you to stick to your financial plan.
Log in or Sign Up for a free account to learn how much money you could have made in the stock market with your past purchases.
Blowing through your budgets and having a high Impulse Index may hinder your ability to invest.