November 2008 Financial Ratios
No complaints here. It was another great month financially. The ratios speak for themselves, but here are some items I noticed.
SAVINGS RATIO: I have been debating wheter or not to include the money we put in our Health Savings Account into our savings category, but then I looked at the name again and decided it techincally is savings 
. The only reason I say that is I feel like it is technically a medical expense that we are just paying in advance, but I guess it’s not an expense until we actually pay it out so we will continue to include it with savings. As you can see with that included we were over 50%.
MONTH’S LIVING EXPENSE COVERED CURRENT RATIO: The trend for our emergency fund ratio has been going up just as we planned. It has been good to have a couple months of consistent paychecks and bills to get a better feel for how healthy our emergency fund really is. However, I feel it is still not a true reflection of the health of our emergency fund because our monthly bills will significantly increase once we purchase a home. With the purchase of a home we are hoping to be within our goal of 3 – 6 months.
DEBT RATIO: Another month of next to nothing in debt. That will change overnight with the purchase of our home, but it’s good to see it so low right now.
*For an explanation of my ratios and what they represent please take a look my 3 part Financial Ratios post (Part I, Part II, Part III).
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