What is Financial Health?

Financial health comes about when your daily systems help you build resilience and pursue opportunities. We believe that financial health is the best indicator of a person’s ability to thrive financially – from weathering shocks to achieving their goals. Financial health is a composite measurement of an individual’s financial life. Unlike narrow metrics such as credit scores, financial health assesses whether people are spending, saving, borrowing, and planning in ways that will enable them to be resilient and pursue opportunities.

Indicators of Financial Health

Financial health can be measured using eight indicators of financial health;

SPEND

1.) Spend less than income

2.) Pay bills on time

SAVE

3.) Have sufficient liquid savings

4.) Confident will meet long term financial goals

BORROW

5.) Have manageable debt

6.) Have a prime credit score

PLAN

7.) Have appropriate insurance

8.) Plan ahead financially

Individuals who are Financially Healthy are able to manage their day-to-day expenses, absorb financial shocks, and progress toward meeting their long-term financial goals. Approximately two-thirds of people in America are classified as Financially Coping (struggling with some aspects of their financial lives) or Financially Vulnerable (struggling with almost all aspects of their financial lives). Source

Reach out to us today if you have questions about how you can become financially healthy! We would love to hear from you. (916) 302-9153