Financial Health
Categories: Metrics, Accounting, Banking
The state of a person's, household's, or company’s finances.
Generally speaking, financially healthy folks pay their bills on time, have an emergency savings account, have a little sumthin’ sumthin’ tucked away for retirement, and don’t have ungodly amounts of debt. They also tend to spend less than they make, and likely have a pretty decent credit score. Financially healthy businesses exhibit a lot of the same behavior, and they tend to have relatively happy and satisfied shareholders.
Just as there are a million ways to monitor and improve our physical health and mental health, so too are there many things we can do to take care of our financial health. And just like our physical and mental health, our financial health can change over time. Developing good habits early and sticking to them can really help us out in the long run, whether we’re looking to retire with a healthy chunk of change, or with the most athletic calf muscles in our active adult community. Or both.