New Financial Calculator Assesses Israeli Families' Economic Resilience and Asset Strength

A new financial calculator launched in Israel helps families evaluate their economic stability by analyzing income, expenses, assets, debts, and savings reserves. It provides a score from 0 to 100 based on seven key factors including monthly cash flow, liquid savings covering living expenses, debt-to-income ratio, job stability, pension savings, and especially real estate value. Since property is often the largest asset for Israeli families, it heavily influences the overall financial resilience score.

For example, a family earning a combined 22,000 shekels monthly with 17,000 shekels in expenses, 800,000 shekels in debt, 150,000 shekels in savings, and a home valued at 2.2 million shekels would score about 68, indicating a stable but not highly secure financial position. Reducing expenses and increasing liquid savings could raise their score to 78, while a higher property value would boost it further. Conversely, a young couple renting with an income of 18,000 shekels, expenses of 15,000 shekels, and only 60,000 shekels in savings scores around 38, reflecting limited financial buffers.

The calculator highlights the importance of net equity (assets minus debts) in determining financial health. Families with substantial net equity, even with negative cash flow, are generally in better shape than those with positive cash flow but little or no equity. Scores reach 100 when net equity exceeds 6 million shekels, reflecting maximum financial flexibility through assets that can be leveraged or sold.

The tool is designed as an initial assessment based on average assumptions like typical mortgage interest rates and investment diversification. It does not replace professional financial advice or account for exceptional circumstances such as inheritances, housing subsidies, or expected salary increases. Users receive a single comprehensive score summarizing their financial status based on entered data, but should consider additional personal factors for a full picture.

The full article was originally published by Bizportal.