Financial Health Indicators: Why Being Debt-Free Alone is Not Enough

Many people assume that not having debts or instalments is the primary sign of financial health. However, Rista Zwestika, a financial planner from the platform Finante.id, asserts that being debt-free is insufficient to measure an individual’s comprehensive financial well-being.

“Not having instalments is indeed a good condition, but it is not enough to conclude that someone is financially healthy,” Rista stated in Jakarta on Monday.

According to Rista, true financial health encompasses resilience, readiness to face risks, and the ability to achieve financial goals sustainably. She emphasised that healthy financial indicators are assessed through various aspects reflecting an individual’s ability to manage long-term risks.

Based on Rista’s explanation, there are several important parameters that determine whether a person’s financial condition is truly healthy. Precision in managing cash flow and assets is the primary key to building financial resilience. A healthy financial condition allows individuals to remain stable even when facing global economic challenges.

Rista reminded that financial health is a continuous process. By having mature planning and discipline in setting aside income, an individual will not only be free from the burden of debt but will also possess both mental and material readiness to face the future.