Financial health library

What is financial health?

 Financial health is the ability to attract, retain, diversify, and grow financial resources with as minimal losses as possible. It is all about building flexibility and durability within one's cash flows and asset management, supported by the financial health network.

 In its core, financial health is about stability to prevail in any economic condition with ease. There are various ways, indicators, and tools to check for financial health, such as balancing between income and expenditure for fixed-income earners, tracking spending habits using digital tools for individuals, and financial audits for organizations.

Some factors can determine either positive or negative financial health. They include: income, financial literacy, personal discipline, proper regulations/monitoring and evaluation techniques, socioeconomic background, responsibilities, and expenses.

 Various components of financial health include:

• Income generation

• wealth creation 

• Managing debt

• Expense management

• Response to Inflation

• Liquidity

• Solvency

• Risk assessment and management