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What
ARE Financial Vital Signs, anyway? |
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Think
about your last trip to the doctor. Your physician probably
used certain measures to gauge your health -- measures
like blood pressure, weight, heart rate, and cholesterol
levels. By studying these signs, you and your doctor understood
how healthy you are now, and how your lifestyle today
will affect your future.
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Your
Financial Vital Signs give you the same type of
measurements, only for your financial health. This
knowledge helps you avoid crisis and plan for health
and wealth. The 5 Vital Signs are: |
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Financial
Blood Pressure
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How
much of your income is spent on debt-related payments
each month? FBP is your debt-to-income ratio, and
measures how much of your money reaches your financial
heart. |
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Cash
Flow
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A
positive Cash Flow Score means you spend less money
than you earn. Negative means you are spending more
money than you have, a dangerous habit that will
get you in trouble. |
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Misery
Index
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How
much do you pay in late fees, overlimit charges,
and other penalties every month? You can easily
eliminate these costs with some organization and
effort. |
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Credit y
Score
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Your
Credit Score measures your credit worthiness, and
determines the interest rate when you borrow money.
People with high scores and good credit histories
save money because they pay lower interest rates. |
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Emergency
Fund
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How
much cash do you have set aside for unexpected emergencies
such as a car breakdown, hospitalization, or job
loss? |
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Why
are the Financial Vital Signs important?
Many people feel overwhelmed by their finances because
there is so much information to manage. The Vital Signs
quickly combine all that information into five easy-to-understand
numbers. Tracking your FVS gives you a simple way to protect
against financial stress and make decisions that lead
you to independence, peace and security.
How do I track my Financial Vital Signs?
FinancialVitalSigns.org allows you to easily measure and
track your FVS online. Your privacy and the safety of
your financial information is guaranteed. And this service
is free!
All you have to do is create
a user account and get started.
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See A Fiscal Physical
Click here
to see how the Financial Vital Signs helped someone get
financially healthy. |
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