March 2009 Financial Ratios
Another month past and our ratios are right in line with where we’d like them.
MTD% Networth Growth – FINALLY!!! It’s been quite a while since we’ve seen an increase in our retirement/equity accounts. Although the growth isn’t near what we’ve lost, we did see some increases this month. Who knows if we have hit bottom or if this is just a lull in the recession, but whatever it is I’ll take it. I know this is long-term investing money and I shouldn’t worry about it, but it’s hard to see investments drop by nearly 50% in a very short time period. I guess only time will tell if this is going to be a sustained recovery or just a pause in the downfall.
Month’s Living Expenses Covered Ratio – We saw a pretty significant drop in our emergency fund coverage ratio from last month to this month. The reason is because we had to take out about $3,000 for home repair projects. We have been planning on doing these projects since we purchased our new home and now that the weather is getting nicer the time finally came to make the withdrawal. We are hoping that by the end of the year we’ll have it back over 12 months.
*For an explanation of my ratios and how they are calculated check out my Financial Ratios posts (Liquidity Ratios, Debt Ratios, Saving Ratios, & Networth Ratios).
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