How to tell if you’re financially healthy.

How to tell if you’re financially healthy.

Your personal and mental health are extremely important. Right below those two, we’d have your financial health. It matters a lot. How do you know if you’re financially healthy? Here’s a checklist.

Start with Credit Score

Start your quick checkup with your credit score. The higher your credit score, the healthier your finances are. This indicates to lenders that you can handle debts and are creditworthy. The better your score, the better deals and rates you may qualify for.

Retirement Savings

Use a retirement calculator to make sure you are healthy in this category. Remember, even if you can’t save a lot, every little bit helps. You can’t depend solely on Social Security alone during retirement.

Debt-to-Income 

Almost everyone has some form of debt, from what is considered good debt (mortgage) to bad debt (credit cards).

• What is DTI? The thing to watch for your financial health is your debt-to-income ratio. This refers to the percentage of your monthly income that is spent on paying debts.
• How is DTI Calculated? All you have to do to find your ratio is divide your monthly debt payments by your gross monthly income. You want your ratio to be 35 percent or less.

Short Term Savings 

If you want to be financially healthy, you must have a short-term savings and/or emergency fund. Ideally, you want to have saved enough to cover six months of fixed expenses. 

Turn Your Financial Check-Up Into a Stronger Plan

A quick financial check-up is a great first step—but having a strategy behind it is what helps turn insight into action. That’s where WCCU’s Wealth Management team can help. Whether you’re preparing for retirement, reviewing investments, or simply looking for clarity around your financial goals, our experienced advisors work with you to create a personalized plan built around your life, priorities, and future.

Schedule your complimentary consultation with our Wealth Management team and take the next step toward long-term confidence and peace of mind.

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