Personal Finance Ratios For Personal Use
As families seek to improve their financial situation and develop plans for the future, a logical first step is to determine their present financial position. A common tool used to determine same is the net worth statement which is a personal balance sheet listing the assets and liabilities of the household, with total net worth being the difference between the two. However, there is a lot we can know about our portfolio than just this measure. We would encourage investors to do an annual assessment of their financial situation to understand the same and to also chalk out a plan for progress for the future. In this issue, we will talk about the wealth of information which can be gleaned from a personal financial statement than just the bottom line. Usage: Application of the ratio analysis technique to personal financial offers potential in expanding insight into specific strengths and weaknesses of a family's financial situation. The ratios are presented below with indications of...