Signs of Healthy Finances

[Suba]

Everyone will certainly want to have a healthy financial condition, so that we can avoid debt, stress or other problems resulting from an unhealthy financial condition. Healthy financial condition does not mean high income or how much money you can allocate to savings/investments each month, but healthy financial condition is often characterized by:
1. Ideally your expenses should be 50% to 80% of your income, but this is not absolute, it will depend on a person's financial condition.
2. The debt installment ratio is no more than 30% of your income.
3. Have savings, emergency funds and investments.

If you have other opinions or criteria as signs of healthy finances, please share.

 

[Suba]

Consistent savings, manageable debt, on-time bill payments, and a rising credit score are all indications of a healthy financial situation. Indicators of financial health may include having an emergency fund and investing for the future.

If we can allocate a portion of our income for investments and emergency funds, it means that our expenses are smaller than our income, which is also a sign of our healthy finances.

 

[Augusta]

The best bet is to reduce your spending rate. Money spent can't be gotten back so spend less to have more