Chapter 2

Measuring Your Financial Health


check Tallying your assets, liabilities, and net worth

check Requesting (and fixing) your credit reports

check Making sense of your credit score

check Understanding bad debt, good debt, and too much debt

check Calculating your rate of savings

check Assessing your investment and insurance know-how

How financially healthy are you? When was the last time you reviewed your overall financial situation, including analyzing your spending, savings, future goals, and insurance? If you’re like most people, either you’ve never done this exercise or you did so too long ago.

This chapter guides you through a financial physical to help you detect problems with your current financial health. But don’t dwell on your “problems.” View them for what they are — opportunities to improve your financial situation. In fact, the more areas you can identify that stand to benefit from ...

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