What is the financial health score and how is it calculated
Your FlowTrack Financial Health Score is a single number between 0 and 100 that captures how well-rounded your financial life is. It is not just about how much money you have — it measures whether you are protected, prepared, and growing.
The score is made up of 10 indicators, each worth a specific number of points. Here is every indicator, what it measures, and how it is scored.
The 10 Indicators
1. Emergency Fund — 15 points
What it measures: How many months of essential expenses you have saved in liquid assets (savings accounts, liquid funds, FDs that can be broken).
| Months of Expenses Saved | Points |
|---|---|
| 6+ months | 15 |
| 4–5 months | 12 |
| 2–3 months | 8 |
| 1 month | 4 |
| Less than 1 month | 0 |
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2. Debt Ratio — 15 points
What it measures: Your total EMI payments as a percentage of your monthly take-home income. Also known as the debt-to-income ratio.
| EMI-to-Income Ratio | Points |
|---|---|
| 0–20% | 15 |
| 21–30% | 12 |
| 31–40% | 8 |
| 41–50% | 4 |
| Above 50% | 0 |
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3. Savings Rate — 10 points
What it measures: What percentage of your take-home income you are saving and investing each month.
| Savings Rate | Points |
|---|---|
| 30%+ | 10 |
| 20–29% | 8 |
| 10–19% | 5 |
| 1–9% | 2 |
| 0% or negative | 0 |
4. Term Insurance — 10 points
What it measures: Whether you have adequate term life insurance coverage if you have dependents.
| Coverage Status | Points |
|---|---|
| Coverage ≥ 10x annual income | 10 |
| Coverage 5–9x annual income | 7 |
| Coverage 1–4x annual income | 4 |
| No term insurance (with dependents) | 0 |
| No dependents declared | 10 (auto-full) |
Warning
5. Health Insurance — 10 points
What it measures: Whether you have health insurance with adequate coverage for your family.
| Coverage Status | Points |
|---|---|
| Family floater ≥ ₹10 lakh or individual policies for all members | 10 |
| Coverage ₹5–10 lakh | 7 |
| Coverage below ₹5 lakh | 4 |
| Only employer-provided cover | 4 |
| No health insurance | 0 |
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6. Credit Health — 10 points
What it measures: Your credit score (CIBIL/Experian/Equifax) and credit behaviour.
| Credit Score | Points |
|---|---|
| 750+ | 10 |
| 700–749 | 7 |
| 650–699 | 4 |
| Below 650 | 2 |
| No credit history | 3 |
7. Nominee Coverage — 10 points
What it measures: Whether you have assigned nominees to all your financial accounts — bank accounts, insurance policies, investments, EPF, NPS, and PPF.
| Nominee Status | Points |
|---|---|
| All accounts have nominees | 10 |
| 75%+ accounts have nominees | 7 |
| 50–74% accounts have nominees | 4 |
| Below 50% | 1 |
| No nominee information recorded | 0 |
Warning
8. Retirement Readiness — 10 points
What it measures: Whether your current savings rate and retirement corpus are on track to sustain your lifestyle after you stop working.
| Retirement Readiness | Points |
|---|---|
| On track or ahead (projected corpus covers 25+ years) | 10 |
| Slightly behind (projected corpus covers 15–24 years) | 7 |
| Significantly behind (projected corpus covers 5–14 years) | 4 |
| No retirement savings | 0 |
FlowTrack uses your current age, declared retirement age, existing retirement savings (EPF + NPS + PPF + dedicated retirement investments), monthly contributions, and an assumed 7% real return after inflation.
9. Investment Diversification — 10 points
What it measures: How well your investments are spread across asset classes — equity, debt, gold, real estate, and alternatives.
| Diversification | Points |
|---|---|
| 3+ asset classes with no single class > 70% | 10 |
| 2–3 asset classes | 7 |
| Single asset class but active investing | 4 |
| Only bank deposits | 2 |
| No investments | 0 |
10. Net Worth Growth Rate — 10 points
What it measures: Your year-over-year net worth growth rate. FlowTrack needs at least 3 months of data to calculate this.
| YoY Growth Rate | Points |
|---|---|
| 15%+ | 10 |
| 10–14% | 8 |
| 5–9% | 5 |
| 1–4% | 3 |
| 0% or negative | 0 |
| Less than 3 months of data | 5 (provisional) |
Total Score: What It Means
Your total score is the sum of all 10 indicators, out of a maximum of 100 points.
| Score Range | Rating | What It Means |
|---|---|---|
| 0–39 | Needs Attention | Multiple financial fundamentals need work. Focus on the lowest-scoring indicators first. Small improvements here make a big difference. |
| 40–59 | Building | You have some basics covered but important gaps remain. Prioritise insurance, emergency fund, and debt reduction. |
| 60–79 | Strong | Your finances are in good shape. Fine-tune diversification, nominees, and retirement planning to get to excellent. |
| 80–100 | Excellent | You are in great financial health. Maintain your habits and focus on optimisation and wealth growth. |
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How to Improve Your Score
FlowTrack does not just give you a number — it tells you exactly what to do. Each indicator card on your dashboard shows:
- Your current score for that indicator
- Why you got that score — the specific data behind it
- What to do next — one concrete action to improve
Focus on the indicator with the most points available. For most people starting out, Emergency Fund (15 pts) and Debt Ratio (15 pts) are the highest-impact areas to improve.
Related articles
The financial health score — all 10 indicators explained
A detailed look at each of the 10 financial health indicators.
The 10 financial health indicators — why FlowTrack chose these
The research and reasoning behind FlowTrack's 10-indicator health scoring system.
Your first net worth snapshot — a 5-minute setup guide
Get your first net worth number in under 5 minutes.