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Financial Health Score

Comprehensive assessment of your financial well-being across 8 key parameters

Overall Score
0/100
Rating
-
Parameters Healthy
0/8
Improvement Areas
0

Your Financial Health Score

0
out of 100
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8 Parameter Breakdown

Each parameter contributes to your overall score

Scoring Methodology & Rationale

1. Savings Rate (Max: 15 points)
Rationale: Measures your ability to save consistently. Higher savings rate indicates better financial discipline.
Scoring: ≥20% = 15pts, ≥10% = 10pts, >0% = 5pts, ≤0% = 0pts
2. Emergency Fund Coverage (Max: 15 points)
Rationale: Assesses your financial safety net. 6+ months of expenses ensures resilience during emergencies.
Scoring: ≥6 months = 15pts, ≥3 months = 10pts, ≥1 month = 5pts, <1 month = 0pts
3. Debt-to-Net Worth Ratio (Max: 20 points)
Rationale: Evaluates debt burden relative to your wealth. Lower debt indicates stronger financial position.
Scoring: No debt = 20pts, Net worth > 2x debt = 15pts, Net worth > debt = 10pts, Otherwise = 5pts
4. Financial Goals Progress (Max: 10 points)
Rationale: Tracks your commitment to long-term financial planning. Active goals show intentional wealth building.
Scoring: Has active goals = 10pts, No goals = 0pts
5. Liquidity Ratio (Max: 10 points)
Rationale: Measures ability to cover liabilities with liquid assets. Ensures you can meet obligations quickly.
Scoring: Ratio ≥1 = 10pts, Otherwise = 0pts
6. Debt-to-Income Ratio (Max: 10 points)
Rationale: Compares total debt to annual income. Lower ratio means less financial strain.
Scoring: <30% = 10pts, <50% = 5pts, ≥50% = 0pts
7. Insurance Coverage (Max: 10 points)
Rationale: Protects against catastrophic financial losses. Adequate coverage prevents wealth destruction.
Scoring: ≥80% adequacy = 10pts, ≥50% adequacy = 5pts, <50% = 0pts
8. Investment Diversification (Max: 10 points)
Rationale: Reduces risk through asset allocation. Diversified portfolio withstands market volatility better.
Scoring: 3+ asset types = 10pts, 2 types = 5pts, 0-1 type = 0pts

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