Being Debt-Free Does Not Necessarily Signify Financial Health

Jakarta, VIVA – An individual’s financial health indicator is not solely defined by being debt-free, but also by their resilience and preparedness in facing financial risks.

Financial planner Rista Zwestika stated that financial health is assessed through various aspects reflecting a person’s ability to manage risks and achieve long-term financial goals. “Not having instalments is indeed a good condition, but it is not sufficient to conclude that someone is financially healthy,” said the financial planner from the education and consultancy platform Finante.id, as reported on Tuesday, 9 June 2026.

She explained that indicators of financial health include the ability to meet daily routine needs without experiencing financial hardship. The availability of funds for emergencies is also a key measure of an individual’s financial health. “Financial health is not just about being debt-free, but also about having resilience, readiness to face risks, and the ability to achieve financial goals sustainably,” said Rista.

An emergency fund must be prepared as a financial buffer to face unexpected situations such as a decrease in income, urgent needs, or job loss. Rista highlighted the importance of having savings or investments to achieve long-term financial goals, such as funding education, purchasing a home, and meeting retirement needs.

The ability to consistently set aside a portion of income, according to her, reflects good financial health. Rista noted that appropriate insurance services can also serve as an option for protection against financial risks. Utilising insurance services can help maintain financial stability when facing health issues or other risks that could affect a family’s financial condition.

Rista emphasised the importance of precision in financial planning and management to build financial resilience and health. A healthy financial condition will enable individuals and families to face various economic challenges.