Financial Health

AAA

DEFINITION of 'Financial Health'

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.

INVESTOPEDIA EXPLAINS '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. Debt-To-Income Ratio - DTI

    A personal finance measure that compares an individual's debt ...
  2. Shoestring

    A slang term used to describe a small amount of money that is ...
  3. Financial Planner

    A qualified investment professional who helps individuals and ...
  4. Personal Finance

    All financial decisions and activities of an individual, this ...
  5. Disposable Income

    The amount of money that households have available for spending ...
  6. Snowball

    A method of efficient debt repayment in which the debtholder ...
Related Articles
  1. Financial New Year's Resolutions You ...
    Savings

    Financial New Year's Resolutions You ...

  2. Target Strategies Often Miss The Mark
    Options & Futures

    Target Strategies Often Miss The Mark

  3. Debt Reckoning
    Investing

    Debt Reckoning

  4. The Indiana Jones Guide To Getting Ahead
    Retirement

    The Indiana Jones Guide To Getting Ahead

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center