Financial Health

What is 'Financial Health'

Financial health is a term used to describe the state of one's personal financial situation. There are many dimensions to financial health, including the amount of savings you have, how much you are setting away for retirement and how much of your income you are spending on fixed or non-discretionary expenses.

BREAKING DOWN 'Financial Health'

Financial experts have devised rough guidelines for each indicator of financial health, but each person's situation is different. For this reason, it is worthwhile to spend time developing your own financial plan to ensure that you are on track to reach your goals, and that you are not putting yourself at undue financial risk if the unexpected occurs.

RELATED TERMS
  1. In The Pink

    An informal expression used to describe a situation in which ...
  2. Personal Finance

    All financial decisions and activities of an individual or household, ...
  3. Retirement Planning

    The process of determining retirement income goals and the actions ...
  4. Retirement Readiness

    The state and/or degree of being ready for retirement. Retirement ...
  5. Financial Planner

    A qualified investment professional who helps individuals and ...
  6. Financial Literacy

    The possession of knowledge and understanding of financial matters. ...
Related Articles
  1. Retirement

    Saving For Retirement: The Quest For Success

    We'll show you how to set yourself up to retire in style.
  2. Personal Finance

    Are You Spending Too Much?

    Post-holiday credit card bills are just one signal that it's time to cut back on spending. Here are others.
  3. Retirement

    7 Signs You're Spending Too Little In Retirement

    Everyone worries about spending too much when they're retired. But you can also spend too little – and even risk your health. Watch for these danger signs.
  4. Retirement

    Managing Income During Retirement

    Learn some sensible strategies for making your hard-earned savings last for as long as you need them.
  5. Financial Advisor

    Retired? Tips for Spending Your Nest Egg Wisely

    It can be hard to start spending money once retirement finally comes. Here are some best practices on how to transition from being a saver to a spender.
  6. Retirement

    Financial New Year's Resolutions You Can Keep

    Start the year off right by evaluating your financial health and setting impactful and achievable goals.
  7. Retirement

    Budgeting for the 4 Phases of Retirement

    Retirement consists of four stages, each with different expenses and different budgeting needs. Here's how to manage your money through them all.
  8. Investing

    The Complete Guide To Calculating Your Net Worth: Why Net Worth Is Important

    Calculating your net worth helps you figure out where you are financially at this point in time. Expressed as a dollar amount, your net worth represents your financial health and is essentially ...
  9. Personal Finance

    I Make $50K a Year: How Much Should I Invest?

    Find out how much to invest each year if your annual income is $50,000. The key is knowing the final benchmark for your retirement goal.
  10. Managing Wealth

    6 Personal Finance Tips to Start 2016

    The new year is an excellent opportunity to review your personal financial plan and take steps to get on track to meet your goals in 2016 and beyond.
RELATED FAQS
  1. Should I convert cash, an IRA and a 401K into a fixed annuity after retirement?

    It has been suggested that I convert a percentage of cash from a savings account, an existing 401K (recently acquired due ... Read Answer >>
  2. When is the best time to start saving for my kid's college?

    I recently started a news business and would like to start saving for my 2 year old's eventual college tuition. When ... Read Answer >>
  3. Is there a minimum I have to contribute to my 401(k) plan?

    Deciding how much to put into a 401(k) account can be tricky. There are guidelines to ensure you are investing what you need ... Read Answer >>
  4. What are the best ways to plan for retirement?

    Learn the basic steps to creating a solid retirement plan that can support you and your family, and find out how to manage ... Read Answer >>
  5. What percentage of your savings account should you spend on a car?

  6. Save for retirement or pay student debt?

    Hello, I am a recent college grad, 23 years old, and have just completed my degree in aerospace engineering. I graduated ... Read Answer >>
Trading Center