December 2008 Financial Ratios
The year has ended and we have finished off the year right where we wanted. We own a home and we saw some significant growth to our Networth….a big part of that due to owning a home.
The ratios don’t show it (and I plan on adding it next year), but our total networth growth for the year was 30.14%. About 7% of it was due to the purchase of our new home so in reality we were probably closer to 25% networth growth. Even with such a horrible 4th quarter in the financial markets we were still able to eek out double digit increases for the year. Because we saw such a significant decrease in our retirement/equity accounts this year we are hoping for a substantial rebound next year. We have set some pretty high goals as they relate to networth growth so lets keep our fingers crossed that we get back some of these massive losses.
Even though we closed on our house this month we don’t actually have a mortgage payment due until February so we were able to save over half of our income and keep some pretty high saving ratios. Once we start paying our regular monthly bills and mortgage we are going to try and keep this right around 15%.
*For an explanation of the different ratios and how they are calculated check out my Financial Ratios posts (Liquidity Ratios, Debt Ratios, Saving Ratios).
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