Is Your Money in Good Shape? Let’s Check the Vitals

You know that feeling when you finally schedule that doctor’s appointment you’ve been putting off, and you walk out thinking, “Okay, I’ve got this”? That’s exactly what it feels like when you check in on your finances.

I still remember the first time I calculated my net worth. I sat on the floor of my apartment with my laptop, a spreadsheet, and a glass of wine (yes, wine was necessary). It wasn’t glamorous, but it was eye-opening—and honestly, empowering. It was the first time I felt like I had control over my money instead of the other way around.

So let’s give your wallet the wellness check it deserves. We’re diving into the most important financial metrics that tell you where you stand and where you’re headed. Don’t worry—it’s not about being perfect, it’s about being aware. And awareness? That’s power.

Your Money Snapshot

Let’s start with the big picture. Net worth gives you the clearest snapshot of where your money stands today. It’s not just about what you have—it’s also about what you owe. And trust me, once you calculate it, you’ll never look at your finances the same way again.

As shown by a NerdWallet analysis, net worth tends to climb steadily with age—jumping from a median of $39,040 for folks under 35 to $410,000 by ages 65 to 74. That’s a powerful reminder: growing your net worth takes time, not perfection. The key is just to start.

1. What It Really Tells You

Net worth is your big-picture snapshot. Think of it as your financial X-ray—it shows what you own (assets) versus what you owe (liabilities).

When I first ran this number, I was shocked. I had some savings, sure—but I also had student loans, a car loan, and a few sneaky credit cards doing damage in the background. That honest look helped me start making real decisions.

2. How to Calculate It

• Add Up Assets: Think cash, investments, home equity, retirement accounts, even that vintage guitar you could sell if needed.
• Subtract Liabilities: Credit card debt, student loans, mortgages—anything you owe.
• The Equation: Assets – Liabilities = Net Worth.

3. Why It Matters

A positive and growing net worth means you’re on the right track. A negative one? Not failure—just feedback. Track it yearly to see progress and motivate yourself to make smarter money moves. My first goal? Getting to zero. Once I did that, I celebrated with a budget-friendly weekend hike and brunch.

How Much of Your Paycheck Is Spoken For?

Ever feel like your paycheck disappears too fast? That’s where debt-to-income ratio comes in. It shows how much of your income is tied up in debt—and how much freedom you’ve got left to work with.

1. What It Measures

Your DTI shows how much of your income is already spoken for by debt. It’s like asking, “How tight is your paycheck right now?”

When I applied for my first mortgage, my lender looked at this before anything else. That was a wake-up call.

2. How to Calculate It

• Add up all monthly debt payments—credit cards, car loans, student loans.
• Divide that by your gross monthly income (before taxes).
• Multiply by 100 for a percentage.

Example: $1,200 debt ÷ $4,000 income = 30% DTI.

3. Why It Matters

• Below 36%? You’re in a healthy zone.
• Above 50%? You’ll want to make a plan to cut it down.

Lenders use it to judge your reliability. You can use it to reclaim some breathing room in your budget.

Measuring Your "Oh-Crap Fund"

Life doesn’t give warnings—but your savings can. This metric tells you how long you could stay afloat if your income suddenly stopped. It’s your personal buffer between “minor hiccup” and “financial panic.”

“Your savings don’t just sit there—they speak. Your ‘Oh-Crap Fund’ measures how long you can stay afloat when life throws a curveball, turning financial panic into peace of mind.”

1. Your Personal Safety Net

Life happens—flat tires, surprise vet bills, and layoffs. An emergency fund is what stands between a crisis and a credit card spiral.

The first time I had to dip into mine (a busted radiator on a road trip—of course), I was so glad I’d built it up.

2. How to Calculate It

• Add up your monthly essential expenses: rent, food, bills, insurance.
• Divide your emergency savings by that number.

Example: $10,000 in savings ÷ $2,000 expenses = 5 months of coverage.

3. Why It Matters

Aim for 3–6 months. More if you freelance, support others, or just like the peace of mind. I used to aim for three—but after a layoff scare in 2020? I upped it to six.

Are You Saving Like You Mean It?

Saving isn’t about being rich—it’s about being ready. This one shows how much of your income you’re keeping for yourself and your future goals. Even small amounts make a big difference over time.

1. Are You Paying Yourself First?

This is how much of your income actually stays with you—not rent, not bills, not Target runs. Just money that’s going toward your future.

2. How to Calculate It

• Total all monthly savings (retirement, rainy day, etc.).
• Divide by your gross monthly income.
• Multiply by 100 for a percentage.

Example: $500 ÷ $5,000 = 10% savings rate.

3. Why It Matters

Experts say aim for 15% minimum. If that feels out of reach right now? Start with 5%. That’s exactly what I did, then bumped it up every six months. Saving is like building muscle—it gets easier with practice.

The 3-Digit Number That Talks Behind Your Back

Your credit score is your financial handshake. It speaks for you when you’re applying for loans, renting a place, or even job hunting. Keeping it healthy opens doors—and keeps costs down.

1. Your Money Report Card

Your credit score is like your financial reputation. I didn’t check mine until my mid-20s, and let’s just say it was…not cute. But the good news? You can fix it.

2. How to Stay on Top of It

Use apps like Credit Karma, or check directly with your bank or credit card issuer.

3. Why It Matters

A score above 700 is solid gold. It can get you better loan rates, higher credit limits, even lower insurance premiums. Pay bills on time, keep balances low, and don’t ghost old accounts—you need that credit history.

Is Your Money Actually Working?

Not all money grows the same. This metric shows how much of your wealth is actually working for you, earning returns and building the future you want. Spoiler: a savings account alone won’t cut it.

1. Is Your Money Growing?

This one tells you what portion of your assets are in investments that actually grow—like stocks, ETFs, or retirement accounts.

When I started out, most of my money sat in a savings account earning next to nothing. Once I started investing through my 401(k) and a Roth IRA, my money finally started working harder than I was.

2. How to Calculate It

• Divide your investment assets by your total assets.

Example: $50,000 invested ÷ $100,000 total = 50%.

3. Why It Matters

Younger folks can afford to be more aggressive—50% or more in investments isn’t crazy. Nearing retirement? Shift toward safer options. It’s all about the right balance for your life stage.

How Tight Is Your Budget Belt?

This one’s your reality check. It shows what percentage of your income is going out the door each month. Lower is better—because more wiggle room means more savings and way less stress.

1. The Real Living Check

How much of your income is eaten up by monthly expenses? This number helps you see if you’re living within your means.

2. How to Calculate It

Monthly expenses ÷ Gross income = Expense-to-income ratio.

Example: $3,000 expenses ÷ $5,000 income = 60%.

3. Why It Matters

If your ratio’s creeping toward 70% or more, it’s time for a spending audit. I once shaved 10% off my budget by cutting streaming services, meal prepping, and switching to a cheaper phone plan. No pain, lots of gain.

How Close Are You to Work-Optional?

This one’s the dream maker. It tells you how close you are to living off passive income instead of punching the clock. Even getting to 10% is a sign you’re building real freedom.

1. The Dream Scenario

This one? It’s my favorite. It measures how much of your lifestyle is funded by passive income—like investments or rental income—versus work.

2. How to Calculate It

Passive income ÷ Monthly expenses = Financial independence ratio.

Example: $1,000 ÷ $4,000 = 25%.

3. Why It Matters

A ratio of 100% means you could stop working tomorrow and still pay your bills. Not quite there yet? Neither am I. But building streams of passive income puts you on that path. Baby steps, always.

Wallet Reads!

Quick wins to turn this knowledge into action:

1. Start with Net Worth: Pull up your statements, open a spreadsheet, and face the facts. It’s not scary—it’s clarifying.
2. Lower That DTI: Pay off your highest-interest debt first. Every small payment moves you toward financial freedom.
3. Build That Safety Net: Aim for $500, then $1,000, then one month of expenses. Celebrate every milestone.
4. Automate to Win: Set up automatic transfers to savings or investing accounts. Set it and forget it.
5. Check Your Credit Score Monthly: Free apps make it easy. Improving just 20 points can save you thousands.
6. Grow What You’ve Got: Don’t just save—invest. Even $50 a month into an index fund can grow into something real.

That’s a Wrap on Your Financial Checkup (You Nailed It)

The truth? Most of us avoid looking at our financial health because we’re afraid of what we’ll find. But when you actually do the check-in? You realize it’s not scary—it’s freeing.

These metrics don’t define your worth; they just help you make smarter moves going forward. Start with one today. You’re not behind—you’re just getting started, and I’m cheering for you every step of the way.