Last Updated on September 11, 2021 at 6:30 pm
Online financial health checkers usually are based on “personal finance ratios”. read more about them here. There are more useful to the finance professional than to the layman to assess the financial state of an individual. So I made this financial health checker which does not reply in these ratios.
In fact you could even call this calculator a mini financial report.
The idea behind the check is quite simple.
Enter
1. how much you earn,
2. how much you spend incl. emis
3. the difference bet. 1 and 2 is how much you can save.
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Depending on when you retire, how long you are likely to live,
inflation rate and present expenses the amount you need to save
per month for your retirement is calculated.
The same quantity is also calculated for your other goals. Children’s education, marriage etc.
So you now know
A. How you can save
B How much you need to save.
The health indicator changes colour depending on the ratio
A/B
RED if A?B < 0.75 (i.e 75%)
Orange is A?B is between 0.75 and 0.9
Green above 0.9
Broad suggestions to change your rating to green are also provided.
Download the Financial Health Checker