We are halfway through the year. If you are tracking every single coffee purchase on a sprawling spreadsheet, please stop. You are wasting your time and burning yourself out.

To know if your finances are healthy, you only need to check three numbers.

The Three Metrics

  1. Your Savings Rate: What percentage of your net income are you saving or investing? For high earners, aiming for 20% or more is the sweet spot. If it is lower, where is the wealth leakage happening?
  2. Your Net Worth Trend: Add up your assets (home equity, ISAs, pensions) and subtract your liabilities (mortgage, loans). Is the total number moving in the right direction compared to January? That is all that matters.
  3. Your Emergency Buffer: Did you dip into your Tier 1 savings this year? If so, your priority for the next three months is to top it back up to your target level.

Finance doesn't have to be complicated to be effective. Check the big numbers, course-correct if needed, and get on with your life.