Business Without Borders

If you are able to perform the steps above, your financial situation is healthy enough to be in that category. Yes, your cash flow does not have a surplus to deficit and achieve financial goals that are still simple. However, your finances remain secure. Why? Since you do not have such thing as emergency fund and emergency fund.

Have you ever thought that a sudden economic crisis, then your employer went bankrupt and you were laid off? These things are not desirable. However, once again, unexpected things can happen. Therefore, you must be on guard in the form of emergency fund. How big? Depends on you. However, typically, the stored value fund in emerging market fund account should be about 6 months of income. Why six months? Due to the expected period of 6 months you’ve had a new job.

In conclusion, the new financial condition could be considered healthy if your daily cash flow positive, has a surplus of funds allocated to achieve future financial goals, either through savings or other investments, and also has an allocation of funds as a precaution. However, it must be remembered, all three of the above are not measured from the nominal value, but from the perspective of personal financial goals.