How to Gauge Your Financial Health

By understanding these key factors, you can judge your financial preparedness and focus your money management efforts where they’re needed most:

• Everything you own, including bank account balances, retirement plans, investments, cars, homes, and other real and personal property
• Total Liabilities: Everything you owe, including credit card, car loan, home loan, and other loan balances
• Net Worth: The sum of all your liabilities subtracted from the sum of all your assets
• Current or Liquidity Ratio: The sum of your cash assets divided by the sum of your liabilities
• Monthly Living Expenditures Ratio: The sum of your cash assets divided by your monthly expenses

Whether you think you’re doing well or know you need help, it’s a good idea to assess your financial fitness at least once every year. After evaluating your financial preparedness, you can create an improvement plan that will help you get ahead.

Learn more about how to improve your financial fitness in this article from Regions.