Every year, millions of Americans step on a scale to see if they're healthy.They check their weight.They know their blood pressure.
They monitor cholesterol.Many even wear smart watches that track every heartbeat and every step they take.JENNIE GARTH ADMITS ‘SCARY’ FINANCIAL SPIRAL AFTER ‘90210’ FAMEBut here's a question almost nobody can answer:The truth is, America has no simple way to measure financial wellness.
We know our credit score.We know our bank balance.
We may even know what our 401(k) is worth.Americans focus a lot on their physical health, but don't devote enough time to their financial health.(Getty Images)But none of those numbers answer the question that really matters.Years ago, I introduced the idea of a Money BMI because I believed Americans needed a financial version of the Body Mass Index, a simple measurement that tells you whether you're on the right track before small problems become major ones.Think about it.
Doctors don’t wait until someone has a heart attack before talking about exercise.They measure warning signs early.Our financial system should work the same way.Today, too many Americans discover they're financially unhealthy only after a crisis.
A layoff.A divorce.
A market correction.An unexpected medical bill.
Retirement arriving years sooner than expected.By then, fixing the problem becomes much harder.Instead of asking only, "How much money do you have?" we should be asking better questions.Do you have an emergency fund? Are you saving at least 15% of your income? Could your family survive financially if something happened to you? Do you have a current estate plan? Are you paying unnecessary taxes? Will your retirement savings actually provide enough income?Those questions paint a far more accurate picture of financial health than a brokerage statement ever could.Imagine if every American had a simple annual Financial Fitness Score that could be something as recognizable as stepping on a scale at the doctor's offi...