Financial Health Score
A holistic 0-100 wellness score that goes beyond budgeting to give you a 360-degree view of your financial well-being. Built on Indian benchmarks and real financial science.
Why a Financial Health Score?
Budgeting isn't enough
You could have a perfect budget but zero insurance, no emergency fund, and bad debt. A budget score alone is misleading.
No Indian app does this
1 Finance has a proprietary score. We're building the first open, transparent scoring model anyone can understand and verify.
Protection comes first
Inspired by Monika Halan's 'Let's Talk Money' — insurance and emergency funds must come before investments. Most people get this backwards.
How Scoring Works
Your overall score is a weighted average of 5 pillar scores (each 0-100), giving a final score from 0 to 100.
The 5 Pillars
Each pillar measures a different dimension of your financial life. Together, they give the complete picture.
Pillar 1: Protection
Weight: 25%Do you have a safety net? This pillar checks your emergency fund (target: 3-6 months of expenses), health insurance (personal policy meeting city-tier benchmarks), term life insurance (8-10x annual income), and penalizes bundled products like ULIPs.
0 months = 0 points | 3 months = 50 | 6 months = 85 | 12+ = 100
Term life (40pts) + Health (40pts) + No ULIPs (20pts)
Metro health cover: ₹15L+ | Tier 2: ₹10L+ | Small town: ₹5L+
Pillar 2: Spending Discipline
Weight: 20%Are you spending within your plan? Measures budget adherence (% of categories within budget), debt-to-income ratio (target: under 30%), and whether you use a cash flow system (separate spending and investing accounts).
Auto-calculated from your app data. 80%+ categories on budget = 80 points.
EMIs < 20% income = 90pts | 30-40% = 40pts | > 50% = 0pts
Halan's 3-account system: Income → Spend-it → Invest-it
Pillar 3: Savings & Investments
Weight: 25%Are you building wealth? Checks your savings rate (Halan's rule: your age = your savings %), investment diversification (equity, debt, EPF, gold, real estate), and retirement progress (age-based benchmarks).
Target: save your age as %. Age 28 saving 28%+ = 100 points.
Equity (30pts) + Debt (25pts) + EPF/NPS (25pts) + Gold (10pts) + RE (10pts)
Age 25-30: 1x annual income | Age 30-35: 2x | Age 40-50: 6x
Pillar 4: Debt Management
Weight: 15%Is your debt under control? Evaluates total debt-to-income and flags high-cost debt. Credit card revolving debt at 24-36% APR is the #1 wealth destroyer. Personal loans above 15% get penalized too.
0% DTI = 100pts | < 20% = 90 | 30-40% = 40 | > 50% = 0
No revolving credit card debt = 100pts | Revolving debt = 10pts
Pillar 5: Planning & Goals
Weight: 15%Are you planning for the future? Evaluates goal setting (specific targets with amounts and dates), whether you have a will (nominee ≠ inheritance — most Indians skip this), and your financial organization habits.
Specific goals with dates = 100 | Vague goals = 50 | None = 0
Has a will = 100 | No will = 0. Nomination alone isn't enough.
Tracks net worth (40) + Consolidated view (30) + Quarterly review (30)
Worked Example
Meet Rahul — 28, software engineer in Bangalore, earning ₹80,000/month. Here's how his score breaks down.
Rahul's Profile
Score Breakdown
No term insurance, company-only health cover below metro benchmark, has ULIP
70% budget adherence, 15% DTI (good), but no cash flow system
Savings rate exceeds age rule (31% > 28%), but only 2 asset classes and 42% retirement progress
Low DTI at 15%, no credit card debt — strongest pillar
Only vague goals, no will, doesn't track net worth
Personalized Recommendations for Rahul
Get term life insurance of at least ₹72L (9x annual income). Cost: ~₹600-800/month.
Build emergency fund to 6 months (₹3.3L). You need ₹1.8L more — achievable in ~3 months at your savings rate.
Get personal health policy of ₹15L for Bangalore. Company cover isn't portable if you switch jobs. Cost: ~₹400-600/month at age 28.
Surrender your ULIP (likely 4-6% returns after charges) and redirect to a direct equity mutual fund.
Separate spending and investing accounts. This one habit prevents lifestyle inflation.
If Rahul follows all 5 recommendations: ~66/100 — "On Track" (a jump of 12+ points)
How It Works in the App
14 simple questions + data we auto-calculate from your budget. Takes about 3-4 minutes.
You Answer (14 questions)
- Emergency fund amount
- Term & health insurance details
- ULIPs / endowment plans
- Separate spending/investing accounts
- Investment types & total value
- Monthly EMIs & credit card debt
- Financial goals & will status
- Net worth tracking habits
We Auto-Calculate
- Monthly income (from your budget)
- Age & city tier (from your profile)
- Monthly expenses (from transactions)
- Savings rate
- Budget adherence (% categories on track)
Built on Research, Not Guesswork
Our scoring model draws from established financial wellness frameworks and Indian-specific benchmarks.
Perception-based, 0-100, Item Response Theory — the gold standard
8 indicators, 4 pillars: Spend, Save, Borrow, Plan
Patented, 14 ratios, 3 pillars — closest Indian comparison
12-question assessment with Indian benchmarks
Money Box framework, 3-account system, protection-first philosophy
Data from Kotak Life, Shriram Finance, ClearTax, Motilal Oswal, Scripbox
Know Your Financial Health
Download CraftMyMoney and get your Financial Health Score when this feature launches. Start with budgeting today — your score gets more accurate as you use the app.