The Stages at of Financial Wellness is our method used to determine your financial progress throughout your journey. Our proprietary FinWell Score is calculated from this information and used to provide a metrics to demonstrate your progress.
Stage 0 Dependency
- Open a savings account
- Open a checking account
- Take financial literacy course
Stage 1 Foundational
- Create a budget
- Enroll in Mint or YNAB
- Determine Net Worth
- Determine credit score
- Determine ratios
- Open multiple checking accounts
- Open multiple savings accounts
- Determine money archetype
- Determine money disorder
- Create money mantra
Stage 2 Unstable
- Obtain a full-time job
- Pay housing, utilities, and food on your own income
- Create a $1000 emergency fund
- Reduce monthly expenses (Goal 10%)
- Increase income (Create side hustle if needed)
- Sell stuff not needed or can’t afford
- Obtain credit card
- Obtain Auto insurance
- Obtain health insurance
- Obtain Life insurance
- Review homeowner (renters) insurance
- Pay at least minimum payments on all debt
- Create short term goals
Stage 3 Stable
- $3000 in emergency fund
- Start debt snowball
- Set SMART Goals
- Create a Will
- Open vacation, large purchase accounts etc.
- Get credit score >670
- Give (Tithe)
- Automate all payments
Stage 4 Debt Freedom
- Pay off all debt (except home)
- Earn extra income
- Sell items to raise money
- Have a paid for car
- Fund Retirement Accounts to 8% or company match
- Credit score > 740
- Set Smart Goals (1-year, 3-Year, 5-year)
- Take a no debt vacation
- Create a savings plan for vacation and cars
- Fund Emergency Fund up to $5000- or 2-month’s expenses
- Save for 20% deposit on home
Stage 5 Secure
- 3 months expenses in emergency fund
- Set up brokerage accounts
- Establish college fund
- Establish retirement bucket list
- Fund Retirement Accounts to 15%
- Buy a home when payment is less than 25% of take-home pay (15-year mortgage)
- Create Legacy Box
- Obtain disability insurance
Stage 6 Wealth Building
- Pay off house
- Start multiple streams of income
- Credit score >800
- Obtain long-term care insurance (at 60 years old)
Stage 7 Independence
- Passive income supports current standard of living
- Start a business or begin dream job
- Passive income supports desired lifestyle
- Retire early
- Give and live as you wish