Your savings health score is calculated based upon 4 factors:
- The amount of cash available in case of emergency
- Consistently spending less than you earn
- Proper investment accounts
- Total invested
Available in emergency:
- Albert looks at the amount of cash you have available in your checking and savings accounts.
- Albert then looks at the average amount you owe in bills every month. Albert triples this number to identify your target savings goal. (Albert recommends having at least 3 months of bills in savings.)
- As your savings approach three months worth of bills, your financial health score will rise.
Spend less than you earn:
- Albert looks at your income over the last three months and subtracts from that your spending .
- You can raise your score in this section by continuing to spend less than you earn.
- Moving money between checking and savings account will not affect your score. The focus for this goal is to create a positive cash flow every month overall.
Proper investment accounts:
- Albert looks at your linked accounts to determine whether you have a retirement and/or brokerage account.
- If you believe you have a brokerage or retirement account that isn't identified in the financial health section, please go to the investments section from the main menu. If you notice they are miscategorized, tap "Edit account categories" and readjust as necessary.
Total amount invested:
- Albert sums the totals from your retirement and brokerage accounts.
- Albert then suggests an investment savings target for your age (based on our calculation of how much money you need today to be on the right path to retirement.) For example, Albert suggests you have a year's worth of income invested by your early 30's. The totals from your investment accounts are divided into this number.
- As you invest more money into your brokerage and retirement accounts, your financial health score for this section will rise.
Please note: Albert will set the minimum for your emergency at $3,000, even if your total bills per month average less than $1,000.