The Center for Financial Services Innovation (CFSI) has come up with eight key indicators of financial health, which can provide a starting place for rethinking how you spend and manage your money.
CFSI believes an individual is financially healthy when you can:
- Spend less than income
- Pay bills on time and in full
- Have sufficient liquid savings
- Have sufficient long-term savings or assets
- Have a sustainable debt load
- Have a prime credit score
- Have appropriate insurance
- Plan ahead for expenses.