Financial Ratios Part III: Savings Ratios
Savings Ratios are basically self explanatory. Savings ratios tell what percentages of both gross and net income are being saved each month.
Gross Savings Ratio = Total Savings / Gross Income
This is probably the most common financial ratio people calculate or track even if they don’t know they are doing so. Anytime you’ve got a 401(k) [...]
(-0.29% Month / +25.92% YTD) June 2009 Networth
June Highlights
- We had some significant decreases in our cash accounts for the month which contributed to the majority of our decrease in networth. The reason for the decreases in our cash accounts is because we had to pay off the credit card for the work on our backyard. Now that the backyard is done, [...]
Financial Ratios Part II: Debt Ratios
Debt Ratios can help determine what percent of assets are offset by debt and whether or not you can meet your current and long-term debt obligations.
Debt Ratio = Total Liabilities / Total Assets
The debt ratio tells you what percentage of your assets is financed with borrowed money. For example, if the only asset you owned [...]
June 2009 Spending Report
Another month past and a pretty ordinary month at that. Here are a few of the highlights.
Taxes – Because of the bonuses I relieved during the first couple months of the year and the requirement to tax them at the highest individual rate possible (35%) I thought I may have paid-in enough taxes. I ran [...]
May 2009 Spending Report
It was another pretty standard month when it came to the budget and spending. After looking at the spending breakdown I realized that we are only living off of 18% of our monthly gross income. I guess with all things considered that is pretty good. I have never really looked or thought about it that [...]
May 2009 Financial Ratios
Another month past with no complaints here…
Month’s Living Expenses Covered Ratio: On goal that we would like to focus on over the next 3-6 months is getting our MLECR over 12 months. Although I’ve only got our goal (recommended) at 3-6 months we have decided that since we’ll be buying a bigger car in the [...]
(+0.42% Month / +26.28% YTD) May 2009 Networth
May has come and gone and another month has past of minimal growth to the networth…
May Highlights
- We had about a $2,000 decrease in our savings account this month because we needed a little more cash to finish the backyard. This should be the last time that we’ll need to dip into savings for a [...]
April 2009 Financial Ratios
Another great month. The ratios are exactly where we like to see them
YTD% Growth: We are now more than half way of hitting our goal of 50% networth growth for the year and we are only 4 months into the year. Granted a big portion of that is because of the enormous tax return we [...]
(+3.65% Month / +25.76% YTD) April 2009 Networth
April Highlights
- Finally the financial markets have decided to give back a little of the massive losses we have been suffering over the past year. It was nice to have a second month in a row of increases in our equity accounts. I may be a pessimist, but I don’t think we are quite out [...]
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 [...]
