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:
- 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.
- 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.
- 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.
- 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.
- 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.
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