Your financial health score is based on your current financial position. InvestorKeep examines your assets, liabilities, and total net worth to determine your overall financial health. Your financial health score helps aid discussions with your financial professional regarding the health of your financial situation and how to develop a plan to get your finances where you want them to be.
(Approximately Age 20’s-30’s 10%-20%, Age 40’s-50’s 10%-20%, Age 60’s-70’s 0%-10% of your liabilities & net worth)
Current liabilities are obligations (bills) that generally must be paid in less than one year.
- Electric, gas, water, garbage bills, etc.
- Unpaid credit card debt
- Medical expenses
- Insurance premiums
Why does it matter?
Cash liabilities are important for maintaining your lifestyle. Understanding changes in your current liabilities will help you determine your spending habits. If current liabilities get too high (relatively) it is important to develop a plan to reign in spending and debt.