You want the wine to be clear, else you'll get sediment in the bottle. Generally speaking a bit of sediment is unsightly but doesn't cause any problems other than making an ugly glass of wine.
Wine goes through a lot of chemical changes in the first 4 to 12 months, and I've become a believer in letting wine bulk age longer as it produces more consistent bottles. Bottling too early may result in the bottles aging differently, so you get different results in different bottles.
Originally I was taught the 1-3-3 rule -- 1 week for fermentation, 3 weeks for clearing, and 3 months for bulk aging. While using your hydrometer instead of the calendar is a better choice, this old rule of thumb worked well before hydrometers became readily available. The take-away is that ~4 months was developed determined to be the minimum time before bottling. This was developing using practical experience over years, so it's a trustworthy value.
I make a variety of wine styles, from lighter reds, whites, and fruits that may be drinkable in 4 to 6 months, to heavy reds that may bulk age over a year and spend another year or 2 in the bottle.
Regardless of what time frames you choose, every few months open a bottle and record your impressions. Don't look at your old notes, just write new ones. After the wine has been in the bottle 1 year, read your notes from first to last. It's a great self-learning tool.