Explainer6 min readUpdated 15 Mar 2025

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 SavedPoints
6+ months15
4–5 months12
2–3 months8
1 month4
Less than 1 month0

Tip

FlowTrack calculates your monthly essential expenses from your logged expense data. If you have not logged enough expenses yet, it uses the number you provide during setup.

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 RatioPoints
0–20%15
21–30%12
31–40%8
41–50%4
Above 50%0

Info

Banks in India generally do not lend if your total EMI obligations exceed 50–60% of income. If you are above 40%, reducing debt should be a priority.

3. Savings Rate — 10 points

What it measures: What percentage of your take-home income you are saving and investing each month.

Savings RatePoints
30%+10
20–29%8
10–19%5
1–9%2
0% or negative0

4. Term Insurance — 10 points

What it measures: Whether you have adequate term life insurance coverage if you have dependents.

Coverage StatusPoints
Coverage ≥ 10x annual income10
Coverage 5–9x annual income7
Coverage 1–4x annual income4
No term insurance (with dependents)0
No dependents declared10 (auto-full)

Warning

ULIPs and endowment plans do not count as term insurance here. FlowTrack specifically looks for pure term cover because that is what actually protects your family.

5. Health Insurance — 10 points

What it measures: Whether you have health insurance with adequate coverage for your family.

Coverage StatusPoints
Family floater ≥ ₹10 lakh or individual policies for all members10
Coverage ₹5–10 lakh7
Coverage below ₹5 lakh4
Only employer-provided cover4
No health insurance0

Tip

Employer-provided health insurance scores only 4/10 because you lose it when you change jobs. Having your own independent policy is important.

6. Credit Health — 10 points

What it measures: Your credit score (CIBIL/Experian/Equifax) and credit behaviour.

Credit ScorePoints
750+10
700–7497
650–6994
Below 6502
No credit history3

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 StatusPoints
All accounts have nominees10
75%+ accounts have nominees7
50–74% accounts have nominees4
Below 50%1
No nominee information recorded0

Warning

Without nominees, your family could face months of legal hassle to access your money if something happens to you. This is one of the easiest indicators to max out — just update your nominees.

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 ReadinessPoints
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 savings0

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.

DiversificationPoints
3+ asset classes with no single class > 70%10
2–3 asset classes7
Single asset class but active investing4
Only bank deposits2
No investments0

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 RatePoints
15%+10
10–14%8
5–9%5
1–4%3
0% or negative0
Less than 3 months of data5 (provisional)

Total Score: What It Means

Your total score is the sum of all 10 indicators, out of a maximum of 100 points.

Score RangeRatingWhat It Means
0–39Needs AttentionMultiple financial fundamentals need work. Focus on the lowest-scoring indicators first. Small improvements here make a big difference.
40–59BuildingYou have some basics covered but important gaps remain. Prioritise insurance, emergency fund, and debt reduction.
60–79StrongYour finances are in good shape. Fine-tune diversification, nominees, and retirement planning to get to excellent.
80–100ExcellentYou are in great financial health. Maintain your habits and focus on optimisation and wealth growth.

Tip

A score of 95+ is rare and not the goal. Even financial advisors typically score 75–85. The goal is steady improvement over time, not perfection.

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:

  1. Your current score for that indicator
  2. Why you got that score — the specific data behind it
  3. 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.

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