Beyond the balance: How is your Financial Health?
Having money in the bank doesn't always mean your finances are healthy. Financial health is measured by your ability to withstand unforeseen events and your level of freedom from debt.
The 3 vital indicators
- Debt Ratio: What percentage of your income goes towards paying debts? Ideally, it should be less than 30%.
- Emergency Fund: How many months could you live if you lost your source of income tomorrow?
- Savings Rate: Are you able to retain at least 10-20% of what you earn?
Get your financial score:
The Financial Health module in Totem Finance automatically analyzes 21 different metrics to give you a score and personalized recommendations to improve your economic robustness.
See my score in the app