There are many indicators of a healthy financial situation, these factors can be combined to determine the overall health of your personal finances and allow the consumer to realize which areas must be improved on in order to gain control over the finances, and over the life.
Do you have savings? Savings are an essential part of being prepared for the future. The consumer should have savings of at least ten percent of the income, yet there are many individuals and families who have yet to save a dime! Imagine the day that an emergency fund is required in case of a job loss or an illness within the family. A healthy financial plan includes savings.
What is your credit score? Having a good to high credit score is a necessary part of having health finances. When you have a healthy financial score it can enable the consumer access to credit to help to maintain and build the credit score even further. Paying bills on time and reducing debt are two of the best ways to maintain and build the credit score.
How much debt do you have? Allocating more than fifteen percent of the income to the debt repayment each month can be dangerous as it puts strain on other parts of the budget. A healthy amount of debt is okay; once this debt becomes unmanageable it can lead to an unhealthy personal financial situation.