What Is a Financial Health Score?

Your financial health score (0-100) measures how well you manage money based on actual spending behavior—not credit history or income. It answers: "Am I building wealth or slowly going broke?"

How Bills AI Calculates Your Score

5 Core Factors (Weighted)

1. Savings Rate (35% of score)

Formula: (Income - Expenses) / Income × 100

Savings Rate	Points	Grade Impact
20%+	35/35	Excellent
15-19%	28/35	Good
10-14%	21/35	Fair
5-9%	14/35	Poor
<5%	7/35	Critical

2. Discretionary Spending Ratio (25% of score)

Formula: (Dining + Shopping + Entertainment) / Total Spending

Discretionary %	Points	Assessment
<20%	25/25	Excellent control
20-30%	20/25	Reasonable
30-40%	15/25	Watch carefully
40-50%	10/25	Problematic
>50%	5/25	Unsustainable

3. Subscription Efficiency (15% of score)

Formula: Active subscriptions / Total subscriptions × Usage score

Penalty: -2 points per forgotten subscription
Penalty: -3 points for duplicate services (Netflix + Hulu + Disney+ + HBO)
Bonus: +2 points for annual payment vs. monthly (saves money)

4. Bank Fee Avoidance (10% of score)

Monthly Fees	Points	Status
$0	10/10	Perfect
$1-10	7/10	Acceptable
$11-25	4/10	Needs improvement
>$25	0/10	Wasteful

5. Spending Consistency (15% of score)

Formula: Standard deviation of monthly spending vs. average

Low variance (<15%): 15/15 points - Predictable, controlled
Medium variance (15-30%): 10/15 points - Some impulse spending
High variance (>30%): 5/15 points - Erratic, risky

Score Ranges & Grades

Score	Grade	Meaning
90-100	A	Exceptional - On track to financial independence
80-89	B	Good - Building wealth consistently
70-79	C	Fair - Treading water, need improvements
60-69	D	Poor - Likely accumulating debt
<60	F	Critical - Urgent action required

Example Calculation

Sarah, 28, Marketing Manager:

Income & Expenses (Monthly)

Income: $5,000
Essential expenses: $2,800 (rent, groceries, utilities, insurance)
Discretionary: $1,400 (dining, shopping, entertainment)
Savings: $800

Score Breakdown

Savings Rate: 16%
$800 / $5,000 = 16% → 28/35 points
Discretionary Ratio: 33%
$1,400 / $4,200 = 33% → 15/25 points
Subscriptions: 5 active, 2 forgotten, 1 duplicate
-2 × 2 (forgotten) = -4
-3 × 1 (duplicate) = -3
→ 8/15 points
Bank Fees: $12/month
→ 4/10 points
Spending Variance: 22%
Medium consistency → 10/15 points

Total Score: 65/100 (Grade D)

How Sarah Improved to Grade B (Score: 84)

Month 1: Cancel Forgotten Subscriptions (+7 points)

Cancelled 2 forgotten subscriptions saving $45/month
Cancelled 1 duplicate streaming service saving $15/month
New subscription score: 15/15

Month 2: Eliminate Bank Fees (+6 points)

Switched to online bank with no monthly fees
Set up ATM fee reimbursements
New fee score: 10/10

Month 3: Reduce Discretionary by 15% (+5 points + savings rate boost)

Meal prep reduced dining out by $180/month
30-day rule for purchases over $50 reduced impulse shopping by $90/month
New discretionary: $1,130 (27% of spending) → 20/25 points
New savings: $1,070 (21.4% savings rate) → 35/35 points

Month 4: Stabilize Spending (+4 points)

Consistent budgeting reduced variance to 14%
New consistency score: 15/15

New Total: 84/100 (Grade B) - Improved 19 points in 4 months

Quick Wins to Boost Your Score

+10 Points (Same Day)

Cancel 3 unused subscriptions
Switch to fee-free bank

+15 Points (This Month)

Cut discretionary spending by 20%
Increase savings rate by 5%

+20 Points (3 Months)

Eliminate all bank fees
Optimize all subscriptions
Achieve 20%+ savings rate
Stabilize monthly spending variance

What Your Score Predicts

Grade A (90-100): Financial Independence Track

Retire 10-15 years early
Build $1M+ net worth by 45
Weather job loss for 12+ months

Grade B (80-89): Wealth Builder

Retire on time or 5 years early
Build $500k-1M net worth by 50
Weather job loss for 6-9 months

Grade C (70-79): Paycheck to Paycheck+

Retire at 65+ if lucky
Build $100k-300k net worth by 50
Weather job loss for 2-3 months

Grade D (60-69): Debt Accumulation Risk

May never retire
Net worth likely negative or under $50k by 50
Cannot weather job loss without crisis

Grade F (<60): Financial Crisis

Likely accumulating debt monthly
At risk of bankruptcy
Urgent intervention needed

Check Your Score Today

Upload 3 months of bank statements to Bills AI. Get your financial health score, personalized improvement recommendations, and track progress monthly.

Every point you improve = hundreds saved annually and years closer to financial freedom.

What Your Financial Health Score Actually Means (And How to Improve It)