Introducing the FinPro score
FinPro score is a way for PPS Wealth Mentor to enable you to measure and track key financial vitals that will support you in building and sustaining the life you want. Focusing on the key indicators and improving your score over time will indicate that you are moving closer to achieving your unique goals and aspirations.
How many FinPro points can you score, and where?
The Fin Pro point system takes a holistic view of your financial position. A score is allocated by considering factors such as how much of your income you spend per month, whether you have an emergency fund, and your ability to care for yourself and your loved ones in case of disability or illness. Below is an indicator of how many points you can earn if you spend less of your income per month.
How are FinPro points allocated?
To support you on your financial journey to live the life you want, the following four focus areas are measured as part of your FinPro score, and points are allocated as follows:
40%
of points are allocated to spending
1
Spending
Points allocation
- How much of your income is spent on lifestyle expenses?
- How much you put away into savings?
- How much is spent on paying back debt (excluding bond payments)?
Why is spending important?
It's easy to assume that increasing my income will solve all financial challenges and allow for savings. However, research indicates that prudently managing monthly cash flow, debt, and saving with discipline are the key drivers for building and sustaining wealth, as well as living a meaningful life.
Savings
Points allocation
- How much savings do you have set aside for emergencies?
- When will you achieve financial freedom and independence?
Why is savings important?
Financial Freedom, also known as Financial Independence, comprises three key components: Firstly, being able to cover emergency expenses, such as a broken fridge. Secondly, reaching a financial stage where you have the freedom to pursue your desired activities on your own terms. And lastly, achieving a stage where your investment income fully supports your monthly expenses.
40%
of points are allocated to saving
10%
of points are allocated based on
your income protection coverage when you are unable to work
3
Income protection
Points allocation
- How well have you protected your income in case of temporary sickness and permanent disability?
- How well are you covered for liabilities, estate costs, and ensuring your loved ones can maintain their lifestyle should you pass away?
Why is income protection important?
If something were to happen to your ability to earn an income, your aspirations and dreams would remain secure. Such events could include temporary illness, permanent disability, critical illness, or passing away. Consider the impact on your financial plan and the lifestyle of yourself and your loved ones if your income were to cease.
Progress Status
Points allocation
- How well have you been progressing in the previous three categories (spending, saving, and income protection)?
- How is your progress maintained over time?
Why is progress important?
By updating your plan quarterly, you will be able to track your financial position, whether you have maintained, improved, or regressed in achieving your goals.
10%
of points are determined by the
overall progress in the previous three categories: spending, savings, and
income protection.
What do you need to do to earn FinPro points?
What are the benefits of earning and monitoring FinPro points?
Benefits
Monitor your income growth (salary, bonuses, commissions) to enhance wealth potential
Track your savings rate to assess your progress
Allocate more savings to ensure aspirations are achieved
Manage debt to minimize risk and increase savings
Assess your net worth (assets vs. liabilities) for financial growth
Trace your journey to financial freedom and independence