1. Net Worth
Your net worth is computed by combining your assets and subtracting your debts, or debt. Yet, when most people hear the term "wealth," they immediately think of income.
There are several examples of people who have a high salary yet have a net worth that is extremely low due to the amount of debt they have in ratio to their assets.
2. Monthly Spending Trends
It's exactly what it sounds like. What is your overall monthly spending, and how is it performing in comparison to the previous month or year?
However, your spending habits have a far greater influence on your financial life than any investment ever can.
3. Saving Rate
Simply put, it is the percentage of your income that you may save in a savings account or invest in assets.
You want to pay off your school loans, vehicle loans, or any other high-interest debt as soon as feasible.
Less than 3%, pay it off slowly and divert the funds to your assets instead. Do whatever seems most comfy with 3-5 percent: debt repayment or investment. More than 5%, pay it off right now.
5. Credit Score
The banking sector has done an excellent job of emphasizing the significance of credit scores.
And I believe it is significant, but of all the indicators we just discussed, I would venture to say it is the least important.
Friends, We cant Explain everything about all these 5 points here due to the google word count limit. So please check out our in-depth and informative article by clicking below.