How Our Financial Analysis Works

A comprehensive guide to understanding your financial health assessment, recovery strategies, and optimization plans.

📊 Analysis Overview

Our financial health calculator provides a comprehensive assessment of your financial situation by analyzing your income, expenses, assets, and liabilities over your lifetime.

Key Concepts

💰 Net Worth Projection

We calculate your projected net worth at each age by tracking all income sources, expenses, investment returns, and debt payments. This shows whether you're on track to maintain financial security throughout your life.

📈 Financial Freedom Score (Funded Ratio)

This metric measures how well your assets cover your future expenses. A score of 100%+ means you're fully funded - your assets can sustain your lifestyle. Below 100% indicates you may need additional savings or adjustments.

  • 150%+ : Exceptional - significant wealth buffer
  • 130-150%: Strong - comfortable security
  • 110-130%: Solid - meeting planning targets
  • 100-110%: Adequate - minimal but workable
  • Below 100%: Needs improvement - consider recovery strategies

🎯 Investment Strategies

Choose from three investment approaches based on your risk tolerance:

  • Conservative (4% returns): Lower risk, stable growth
  • Balanced (6% returns): Moderate risk and growth
  • Aggressive (8% returns): Higher risk, maximum growth potential

🔧 Recovery Plans

If your analysis shows you're not fully funded (below 100%), recovery plans help you get back on track through strategic savings and financial adjustments.

When Do You Need a Recovery Plan?

Recovery plans are recommended when your Financial Freedom Score is below 100% or when you have projected deficit years. They provide specific, actionable steps to achieve financial security.

Recovery Strategy Options

⚡ Fix Plan

Best for: Comprehensive restructuring focused on ensuring your income covers your expenses.

The Fix Plan analyzes all aspects of your finances and creates a customized solution combining income increases, expense reductions, and additional savings. It's phased in gradually over 5 years to make changes manageable.

Key Features:

  • Targets multiple financial levers simultaneously
  • Gradual 5-year implementation schedule
  • Customized to your specific situation
  • Shows exact income, expense, and savings targets for each year

🎯 Balanced Recovery

Best for: Steady, consistent approach to recovery

Save a fixed monthly amount throughout your recovery period. This provides predictable monthly targets that are easy to budget and automate.

Key Features:

  • Consistent monthly savings target
  • Easy to budget and track
  • Proven, straightforward approach

📈 Gradual Recovery

Best for: Easing into higher savings rates over time

Start with lower monthly savings and gradually increase as your income grows. This approach aligns with typical career income growth and builds the savings habit progressively.

Key Features:

  • Lower initial financial burden
  • Increases aligned with income growth (typically 3% annually)
  • Easier to adapt to incrementally
  • Longer timeline but more sustainable

🚀 Optimization Plans

If your base analysis shows you're already on track (100%+ funded), optimization plans help you enhance your financial position even further through additional savings.

When Can You Use Optimization?

Optimization plans are available when your Financial Freedom Score is 100% or higher. They're optional enhancements - your base plan already provides security, but optimization can increase your wealth buffer and create more financial flexibility.

Optimization Strategy Options

🎯 Balanced Optimization

Consistent additional monthly savings to meaningfully enhance your financial position while maintaining current lifestyle.

📈 Gradual Optimization

Add modest additional savings that grow over time, further securing your financial future without major lifestyle changes.

⚡ Aggressive Optimization

Maximum additional savings for those who want to build exceptional wealth and create substantial legacy options.

Aspirational vs. Feasible Plans

Not all recovery plans may be immediately feasible - some may require savings rates and income increases that exceed your current capacity. We'll clearly label these as "aspirational" and explain what would be needed to achieve them.

💡 How to Get Started

Step 1: Run Your Base Analysis

Click "My Recommendations" to generate your base plan to see your baseline financial health. It is important to note that this analysis does NOT take future market returns into account. This is because we want to consider where your finances currently stand at this point in time.

Step 2: Check Your Financial Freedom Score

  • Below 100%? You need a Recovery Plan
  • 100% or higher? Consider Optimization Plans for enhancement

Step 3: Choose an Investment Strategy

Select conservative, balanced, or aggressive.

Step 4: Compare Plan Options

We'll show you all available strategies and highlight which ones are feasible based on your income and expenses.

Step 5: Compare Results

Use our comparison tools to see side-by-side projections, financial insights, and choose the approach that best fits your goals and capacity.

Ready to Get Started?

Create your personalized financial health assessment and discover which strategies work best for your situation.

Start Your Analysis →