I recently read The Digerati Life’s post on using a CNN Money tool to gauge her family’s financial health and just had to try it for myself. The tool asked me questions about my household income, how much I pay for housing and to service my debt, and how many months of emergency savings I have.
The questions were broken into in seven categories and I got instant feedback when I finished each category. Overall I got a B+ grade and this report: “Looks like your finances are in good shape, but there are still a few areas you could improve.”
The two areas where I need to improve, according to the tool, are the percentage of my income that goes to housing and my stock diversification.
Los Angeles is an expensive place to live, so I’m not sure how much I can lower my rent. As for diversification, I can review my portfolio with my financial advisor.
How financially healthy are you? Check out the CNN Money tool here. I highly recommend it!