The financial health of your household and improving it is an ongoing process. It's not just about how you manage your daily expenses and whether you generate enough income on a regular basis. It's also about building assets and growing them to increase your financial resilience, as well as setting short- and long-term goals. Deloitte research shows that the following 5 points are important in determining your financial health, for now and in the future:

1. Income

  • Your income is sufficient to meet daily and future obligations, such as paying the fixed costs, insurances and taxes, but also the groceries.
  • Your income is predictable: you know that you will earn enough in the future, so you will not be faced with unnecessary surprises.

2.  Expenses

  • Your income and expenses are in balance: you can make ends meet from your income and/or assets.
  • You can pay all your bills on time and there are no payment arrears.

3. Savings

  • You save regularly and have sufficient immediate cash available for the short term, so that broken appliances can be replaced.
  • Not only that, but you also save and make investments for the long(er) term: for your pension, a renovation, a trip around the world or another major expense.

4. Borrowing

  • Your loans/debt are manageable, and you can repay your debts on time.
  • You have an understanding of the nature and extent of your loans/debts.

5. Planning

  • You set a budget for the short term and keep track of it, and you set long-term plans to achieve major life goals.
  • Not only that, but you've taken out all the insurance needed to cover major risks.

Flow provides you with a simple way to understand your financial situation and helps you structure your income, expenses, savings and loans, for both the short and long term.

More about how Flow works? Click here!