35 Rasio Keuangan Pribadi Penting untuk Kesuksesan Finansial

Rasio keuangan pribadi dapat membantu Anda tetap pada jalur

Rasio keuangan pribadi adalah cara terbaik untuk mengukur kesehatan finansial dan kesiapan pensiun Anda. Perencana keuangan menggunakannya untuk melakukan analisis rasio keuangan, namun Anda dapat melakukannya sendiri dengan mudah.

Setelah Anda mengetahui cara menghitungnya, ini adalah alat praktis yang memberi Anda gambaran besar tentang apa yang berhasil dan apa yang tidak. 

Jangan terkecoh dengan penolakan untuk mengerjakan rumus matematika – menghitung rasio keuangan pribadi sangatlah mudah!

Dalam postingan ini, Saya akan menjelaskan 35 rasio keuangan pribadi untuk membantu Anda menilai posisi keuangan Anda saat ini. Tapi, pertama-tama, mari kita bahas apa itu rasio keuangan pribadi. 

Apa yang dimaksud dengan rasio keuangan pribadi?

Rasio keuangan pribadi adalah perbandingan dua nilai keuangan untuk menguji hubungan di antara keduanya. Rasio dihitung dengan membagi satu jumlah dengan jumlah lainnya, dan dapat berguna untuk melacak kemajuan serta mengungkapkan kekuatan dan kelemahan dalam rencana keuangan.

Rasio keuangan adalah alat yang berguna untuk mengevaluasi dan mengukur kesehatan keuangan. Metrik utama ini memberikan gambaran tentang posisi keuangan Anda saat ini dan wawasan untuk membuat keputusan yang lebih menguntungkan dengan uang Anda.

Anda tidak memerlukan penasihat keuangan untuk memberi tahu Anda bagaimana kinerja keuangan Anda. Rasio keuangan pribadi dapat memberi Anda indikasi yang baik jika Anda cukup menabung, memiliki terlalu banyak utang, dan apakah Anda berada di jalur yang tepat untuk pensiun tepat waktu. Panduan ini memberi Anda aturan praktis yang berguna untuk diikuti sehingga Anda dapat yakin bahwa Anda bergerak ke arah yang benar.

Sekarang, mari masuk ke rasio keuangan pribadi yang dapat membantu Anda meningkatkan pengelolaan uang dan mencapai tujuan kehidupan finansial Anda. 

1. Tarif Hemat

Apa itu?

Rasio tabungan menunjukkan persentase pendapatan yang Anda simpan dalam jangka waktu tertentu,  biasanya setiap tahun atau bulanan.

Bagaimana cara menghitungnya?

Inilah cara Anda menghitung tingkat tabungan Anda :

TOTAL TABUNGAN PENDAPATAN KOTOR =TINGKAT TABUNGAN

Nilai apa yang saya gunakan?

Tabungan Anda dapat mencakup uang yang Anda tambahkan ke rekening tabungan bank, rekening pasar uang, dana darurat, rekening pensiun, dana kuliah, dll.

Apa yang Anda sertakan dalam rasio ini terserah Anda, dan akan bergantung pada bentuk tabungan yang ingin Anda lacak. Beberapa orang tidak memasukkan dana darurat atau dana kuliah saat menghitung rasio ini, sementara yang lain memasukkan semua kendaraan tabungan ke dalam metrik ini.

Pendapatan kotor Anda adalah keseluruhan pendapatan Anda sebelum dipotong pajak dan potongan lainnya. Hal ini mencakup gaji dan bonus pekerjaan, pendapatan bisnis dan pekerjaan sampingan, pendapatan dividen dan bunga, pendapatan apa pun dari properti sewaan, dll. 

Nilai yang Anda gunakan harus dikumpulkan dalam periode waktu yang sama. Jadi, jika Anda menjumlahkan jumlah tabungan Anda dalam sebulan, maka Anda juga akan menggunakan pendapatan kotor bulanan Anda.

Demikian pula, total tabungan Anda selama setahun terakhir harus dibagi dengan pendapatan kotor tahunan Anda. Salah satu manfaat menghitung rasio tabungan bulanan adalah Anda dapat melakukan penyesuaian lebih cepat jika diperlukan.

Apa tolok ukur yang bagus?

Rasio tabungan ideal Anda akan bergantung pada beberapa faktor, seperti usia Anda, sisa waktu hingga pensiun, dan tabungan Anda saat ini.

Jika Anda memiliki waktu 30 tahun hingga Anda pensiun, menabung 10-20% dari penghasilan Anda sudah cukup. Namun jika Anda hanya mempunyai 15 tabungan dan tidak mempunyai tabungan, persentase ini harus jauh lebih tinggi.

Semakin tinggi rasio tabungan Anda, semakin cepat Anda mencapai tujuan Anda.

Bagaimana rasio ini dapat diterapkan?

Katakanlah Anda ingin mengetahui rasio tabungan bulanan untuk seluruh gabungan tabungan Anda – dana darurat, dana kuliah, rekening tabungan, dan dana pensiun. 

Total kontribusi Anda untuk semua akun ini sama dengan $1.000 selama 30 hari terakhir. Anda menghitung pendapatan kotor Anda selama periode yang sama menjadi $6.000.

Rasio tabungan bulanan Anda saat ini adalah $1.000 ÷ $6.000 =0,16 =16%.

Bagaimana rasio ini dapat membantu saya?

Mengetahui tingkat tabungan Anda akan memberi Anda gambaran realistis tentang apa yang perlu Anda lakukan hari ini untuk mencapai tujuan tabungan Anda.  Metrik ini adalah rasio keuangan yang sangat sederhana, namun sangat penting, dan mencerminkan kemampuan Anda untuk memenuhi tujuan masa depan.

Anda mungkin menyadari bahwa perampingan dan pemotongan pengeluaran merupakan tindakan yang perlu dilakukan, atau meningkatkan penghasilan Anda dengan mencari pekerjaan sampingan.

2. Metrik Tabungan Pensiun

Apa itu?

Menabung untuk masa pensiun harus menjadi prioritas utama dalam daftar tujuan keuangan Anda, dan memulainya sedini mungkin akan memaksimalkan manfaat bunga majemuk.

Ada beberapa sarana tabungan pensiun umum yang menawarkan manfaat pajak dan keuntungan lebih besar. Beberapa di antaranya termasuk program pensiun yang disponsori perusahaan seperti program tradisional dan Roth 401(k), program pensiun tradisional dan Roth IRA, pensiun tradisional, dan anuitas.

Bagaimana cara menghitungnya?

Berikut cara menghitung metrik tabungan pensiun Anda :

PENDAPATAN UTAMA x 25 =TARGET TABUNGAN PENSIUN

Nilai apa yang saya gunakan?

Pendapatan utama Anda adalah pendapatan yang Anda terima dari pekerjaan tetap Anda. Ini adalah pendapatan yang biasanya diperoleh dari pekerjaan penuh waktu, dan tidak termasuk pendapatan sementara atau tidak konsisten.

Apa tolok ukur yang bagus?

Metriknya sendiri mewakili tolok ukurnya, yaitu 25x penghasilan utama Anda.

Kelipatan 25 berkaitan dengan aturan 4% yang dibuat oleh William Bengen. Pada dasarnya, aturan menyatakan bahwa mempertahankan tingkat penarikan tabungan sebesar 4% di masa pensiun akan memungkinkan uang Anda bertahan seumur hidup Anda. Mengalikan 25 dengan 4% sama dengan 100% – yang menjelaskan hubungan keduanya.

Seperti semua rasio dalam daftar ini, Anda harus menggunakan metrik ini sebagai pedoman dan bukan aturan. Anda perlu memutuskan gaya hidup yang ingin Anda jalani di masa pensiun, serta sumber pendapatan lain yang akan Anda terima (seperti Jaminan Sosial atau warisan).

Bagaimana rasio ini dapat diterapkan?

Sebagai contoh, katakanlah Anda mendapat gaji tahunan sebesar $80.000 per tahun. Jika Anda ingin mempertahankan tingkat pendapatan ini selama masa pensiun, target Anda harus $80.000 x 25 =$2.000.000.

Bagaimana rasio ini dapat membantu saya?

Setelah Anda menghitung angka ini menggunakan nilai Anda sendiri, Anda memiliki target yang harus dicapai. Ini adalah titik awal yang baik untuk mengetahui berapa banyak Anda harus berinvestasi hari ini.

3. Rasio Dana Darurat

Apa itu?

Dana darurat ibarat jaring pengaman untuk membantu Anda menghadapi kesulitan keuangan, seperti kehilangan pekerjaan, krisis kesehatan, atau biaya perbaikan rumah yang tiba-tiba. Tanpa dana darurat yang memadai, kemungkinan besar Anda akan menggunakan kartu kredit untuk menutupi biaya-biaya ini.

Rasio dana darurat berlaku langsung pada uang yang Anda sisihkan untuk pengeluaran tak terduga. Ini mengukur jangka waktu dana darurat Anda akan menutupi biaya bulanan penting Anda.

Bagaimana cara menghitungnya?

Berikut cara menghitung rasio dana darurat Anda:

TABUNGAN DARURAT BEBAN PENTING BULANAN =RASIO DANA DARURAT

Nilai apa yang saya gunakan?

Tabungan darurat Anda adalah semua dana yang Anda sisihkan untuk pengeluaran darurat. Biasanya tabungan ini disimpan dalam rekening tersendiri dan tidak digunakan untuk tujuan lain.

Pengeluaran penting bulanan Anda adalah pengeluaran yang NON-diskresioner. Ini mencakup semua biaya hidup yang tidak bersifat opsional – seperti hipotek, asuransi, makanan, dan transportasi.

Apa tolok ukur yang bagus?

Tolok ukur yang baik adalah menabung cukup untuk menutupi pengeluaran penting selama 3 hingga 6 bulan. Hitung rasio ini menggunakan nilai Anda sendiri untuk menentukan berapa banyak yang perlu Anda tabung untuk keadaan darurat.

Bagaimana rasio ini dapat diterapkan?

Misalnya, jika saat ini Anda memiliki dana darurat dengan saldo $10.000, dan pengeluaran penting bulanan Anda berjumlah $4.000, maka tabungan Anda dapat mencakup $10.000 ÷ $4.000 =2,5 bulan.

Bagaimana rasio ini dapat membantu saya?

Keadaan darurat biasanya tidak terduga dan tiba-tiba. Anda ingin bersiap sebelumnya itu terjadi.

Mengetahui rasio dana darurat akan membantu Anda tetap pada jalur dalam mengumpulkan tabungan, sehingga keadaan darurat tidak menimbulkan bencana finansial.

4. Rasio Ujung Depan

Apa itu?

Rasio ujung depan (juga dikenal sebagai perumahan terhadap pendapatan, atau rasio perumahan dasar) adalah perhitungan penting yang digunakan pemberi pinjaman untuk menentukan kemampuan Anda membayar kembali pinjaman hipotek. 

Bagaimana cara menghitungnya?

Berikut cara menghitung rasio ujung depan:

BIAYA PERUMAHAN BULANAN GAN PENDAPATAN BULANAN KOTOR =RASIO FRONT END

Nilai apa yang saya gunakan?

Biaya perumahan lebih dari sekedar pokok dan bunga pinjaman. Biaya tersebut juga mencakup pajak properti, asuransi pemilik rumah, biaya utilitas, dan biaya HOA.

Pendapatan kotor bulanan Anda adalah jumlah seluruh pendapatan Anda sebelum dikurangi pajak dan potongan lainnya. Hal ini dapat mencakup gaji dan bonus pekerjaan, pendapatan bisnis dan pekerjaan sampingan, pendapatan dividen dan bunga, dll. 

Apa tolok ukur yang bagus?

Biasanya, pemberi pinjaman lebih memilih rasio ini tetap di bawah 28% untuk pemohon pinjaman. Semakin rendah Anda mendapatkan rasio ini, semakin terjangkau biaya perumahan Anda.

Bagaimana rasio ini dapat diterapkan?

Jika biaya perumahan bulanan Anda berjumlah $2.000, dan pendapatan kotor bulanan Anda sama dengan $8.000, maka rasio front-end Anda adalah $2000 ÷ $8000 =0,25 =25%.

Bagaimana rasio ini dapat membantu saya?

Metrik ini akan memberi Anda gambaran bagus tentang berapa harga rumah yang mampu Anda beli.

5. Rasio Hipotek

Apa itu?

Rasio hipotek adalah aturan praktis sederhana yang memberi Anda gambaran umum tentang jumlah pinjaman rumah yang mampu Anda bayar. 

Bagaimana cara menghitungnya?

Untuk menentukan rasio hipotek Anda, cukup kalikan pendapatan kotor Anda dengan 2,5:

PENDAPATAN UTAMA TAHUNAN KOTOR x 2,5 =RASIO KPR

Nilai apa yang saya gunakan?

Penghasilan utama Anda adalah sumber penghasilan utama Anda, dan biasanya mengacu pada pekerjaan penuh waktu Anda. Anda mungkin memiliki sumber pendapatan sekunder, seperti tunjangan atau pekerjaan sampingan, yang tidak boleh disertakan.

Apa tolok ukur yang bagus?

Rasio tersebut mewakili tolok ukur, yaitu 2,5x penghasilan utama Anda.

Bagaimana rasio ini dapat diterapkan?

Jika pendapatan kotor utama Anda dari pekerjaan harian Anda adalah $75.000 per tahun, maka aturan praktis yang baik adalah mengajukan hipotek sebesar $75.000 x 2,5 =$187.500 atau kurang.

Ini tidak berarti bahwa Anda hanya dapat mempertimbangkan rumah senilai jumlah ini. Jika Anda mengajukan KPR konvensional, Anda mungkin harus membayar minimal 20% dari harga jual.

Jadi, dengan pendapatan tahunan utama sebesar $75.000, Anda berpotensi melihat rumah senilai $234.000 atau kurang:

$234.000 x uang muka 20% =$46.800

$234.000 – $46.800 =$187.200 pinjaman hipotek

Bagaimana rasio ini dapat membantu saya?

Rasio keuangan pribadi ini akan memberi Anda gambaran rata-rata jumlah hipotek yang mungkin mampu Anda bayar.

6. Pinjaman terhadap Nilai

Apa itu?

Rasio pinjaman terhadap nilai (LTV) adalah hubungan antara jumlah pinjaman rumah yang belum dibayar dan nilai penilaian rumah. Ini adalah persentase nilai rumah yang dipinjam.

Bagaimana cara menghitungnya?

Berikut cara menghitung rasio pinjaman terhadap nilai:

SALDO PINJAMAN SAAT INI NILAI PENILAIAN SAAT INI =PINJAMAN KE NILAI

Nilai apa yang saya gunakan?

Saldo pinjaman saat ini adalah jumlah yang tersisa pada hipotek. Nilai yang dinilai saat ini adalah nilai rumah yang saat ini dinilai.

Apa tolok ukur yang bagus?

Rasio pinjaman terhadap nilai yang tinggi biasanya dianggap sebagai risiko pinjaman untuk pinjaman hipotek. Hal ini dapat mengakibatkan suku bunga lebih tinggi, atau permohonan Anda ditolak.

Sebagian besar pemberi pinjaman akan memberikan suku bunga yang lebih menguntungkan jika LTV berada pada 80% atau lebih rendah. Faktor-faktor yang dapat menurunkan LTV antara lain uang muka yang lebih besar, harga jual yang lebih rendah, dan nilai penilaian yang lebih besar.

Bagaimana rasio ini dapat diterapkan?

Katakanlah Anda mengajukan penawaran sebesar $190.000 untuk sebuah rumah senilai $200.000. Tawaran Anda diterima, dan Anda memberikan diskon 20% ($190.000 x 20% =$38.000). Ini berarti hipotek Anda adalah $190.000 – $38.000 =$152.000.

Dengan menggunakan angka-angka ini, LTV Anda akan menjadi $152.000 200.000 =0,76 =76%.

Bagaimana rasio ini dapat membantu saya?

Saat Anda ingin membeli rumah, rasio LTV adalah pengukuran yang berguna untuk menentukan jumlah uang muka yang Anda perlukan untuk menjaga LTV Anda di bawah 80%.

Jika LTV Anda di atas 80%, kemungkinan besar Anda harus membayar asuransi hipotek swasta dan tingkat bunga yang lebih tinggi.

Sebagai pemilik rumah, LTV Anda akan turun seiring dengan naiknya nilai properti dan saldo hipotek Anda menurun.

7. Metrik Investasi

Apa itu?

Rasio investasi adalah ukuran untuk membantu Anda memutuskan bagaimana portofolio investasi Anda harus dialokasikan antara investasi berisiko tinggi (misalnya saham) dan investasi berisiko rendah (misalnya obligasi). Rasio ini sebagian besar dipengaruhi oleh usia, dan sebaiknya digunakan sebagai pedoman umum.

Rumus ini menghitung persentase portofolio yang harus diinvestasikan pada sarana investasi berisiko tinggi, seperti saham dan ekuitas lainnya. Sisanya kemudian akan dimasukkan ke dalam opsi yang lebih aman, seperti obligasi dan anuitas.

Seiring bertambahnya usia, persentase saham dan ekuitas akan menurun, yang berarti semakin kecil risiko pengambilan keputusan investasi saat Anda semakin dekat dengan masa pensiun.

Bagaimana cara menghitungnya?

Berikut cara menghitung rasio investasi:

120 – USIA SAAT INI =RASIO INVESTASI

Nilai apa yang saya gunakan?

Jika Anda memilih untuk tetap mengikuti tren investasi saat ini, Anda akan menggunakan nilai yang direkomendasikan yaitu 120 dan usia Anda saat ini.

Namun, ada sebagian orang yang menggunakan nilai 100 atau 110 untuk rasio ini, bergantung pada perkiraan umur panjangnya sendiri.

Apa tolok ukur yang bagus?

Perhitungannya sendiri merupakan tolak ukurnya, namun sebaiknya Anda menganggap ini hanya sebagai titik awal saja. Ada beberapa faktor yang akan memengaruhi cara Anda menyeimbangkan portofolio, dan Anda harus mempertimbangkan semuanya saat menentukan alokasi aset.

Bagaimana rasio ini dapat diterapkan?

Saat berusia 30 tahun, Anda memiliki waktu beberapa tahun untuk menghadapi naik turunnya pasar saham. Oleh karena itu, Anda dapat mengambil lebih banyak risiko dengan investasi Anda.

Anda dapat mempertimbangkan untuk berinvestasi 120 – 30 =90% pada opsi berisiko tinggi seperti saham, dan hanya sekitar 10% pada obligasi.

Namun, jika Anda berusia 57 tahun, masa pensiun sudah semakin dekat dan Anda tidak ingin terlalu mempertaruhkan dana pensiun Anda. Artinya 120 – 57 =63% merupakan alokasi yang lebih baik untuk saham. Sisanya lebih aman di obligasi dan anuitas.

Bagaimana rasio ini dapat membantu saya?

Metrik ini berguna untuk mengukur persentase aset yang sesuai dalam portofolio investasi Anda. Karena kesederhanaannya, Anda sebaiknya hanya menggunakannya sebagai titik awal umum saat menentukan selera risiko Anda.

8. Pengembalian Investasi

Apa itu?

Rasio laba atas investasi (ROI) mengukur kinerja masa lalu atau potensi pengembalian aset investasi di masa depan. 

Bagaimana cara menghitungnya?

Untuk menentukan ROI suatu investasi, Anda harus menghitung pengembalian bersih terlebih dahulu , yang merupakan selisih antara nilai awal dan nilai saat ini.

Setelah mengetahui nilai bersihnya, Anda dapat menghitung ROI:

(PENGEMBALIAN BERSIH ± BIAYA INVESTASI) x 100% =PENGEMBALIAN INVESTASI

Nilai apa yang saya gunakan?

Untuk menentukan ROI investasi Anda, Anda perlu mengetahui jumlah yang Anda beli. Misalnya, ini mungkin 100 lembar saham.

Untuk keuntungan bersih, Anda perlu mengetahui nilai awal dan nilai akhir investasi. Mengurangkan nilai pertama dari nilai kedua akan memberi Anda keuntungan bersih.

Biaya investasi Anda sama dengan total yang Anda bayarkan untuk investasi tersebut.

Apa tolok ukur yang bagus?

ROI dapat sangat bervariasi pada investasi Anda, bergantung pada risiko dan kondisi pasar. Namun, pengembalian sebesar 7% atau lebih biasanya dianggap sebagai rasio ideal untuk saham. Ini juga merupakan pengembalian tahunan rata-rata untuk S&P 500.

Bagaimana rasio ini dapat diterapkan?

Mari kita lihat contoh yang sangat sederhana.

Mungkin Anda membeli 100 saham dengan harga $10 per saham, satu tahun yang lalu. Nilai saham saat ini adalah $11. Ini akan membuat laba bersih Anda sama:

($11 – $10) x 100 =$100

Biaya investasi Anda adalah 100 x $10 =$1.000.

Dengan menggunakan nilai-nilai ini, kini kami dapat menghitung ROI Anda sebagai:

$100 ÷ $1000 =10%

Bagaimana rasio ini dapat membantu saya?

Rasio ROI akan memberi tahu Anda seberapa baik (atau tidak begitu baik) kinerja investasi Anda. Meskipun imbal hasil yang ideal umumnya dianggap antara 7% dan 10%, Anda harus membiarkan tujuan keuangan Anda menginformasikan target imbal hasil Anda.

9. Rasio Aset Investasi terhadap Gaji Kotor

Apa itu?

Rasio aset investasi terhadap gaji kotor adalah metrik yang berguna untuk mengukur kemajuan Anda menuju tujuan keuangan jangka panjang (seperti pensiun). Rasio ini menunjukkan seberapa baik Anda dapat mengganti pendapatan Anda dengan tabungan tunai dan aset investasi setelah Anda pensiun.

Bagaimana cara menghitungnya?

Berikut ini cara Anda menghitung rasio aset investasi terhadap pembayaran kotor:

(TOTAL KAS + ASET INVESTASI) PEMBAYARAN KOTOR =RASIO ASET INVESTASI TERHADAP PEMBAYARAN KOTOR

Nilai apa yang saya gunakan?

Untuk rasio ini, jumlahkan seluruh tabungan tunai untuk tujuan jangka panjang Anda dan nilai investasi Anda. Ambil jumlah totalnya dan bagi dengan gaji kotor tahunan Anda (sebelum pajak dan potongan).

Apa tolok ukur yang bagus?

Metrik ini akan meningkat seiring bertambahnya usia karena mencerminkan kemajuan Anda menuju tujuan jangka panjang. Jadi, orang berusia 25 tahun seharusnya memiliki rasio yang jauh lebih rendah dibandingkan orang berusia 50-an.

Berikut adalah daftar tolok ukur yang perlu dipertimbangkan berdasarkan usia:

usia

% DARI PEMBAYARAN KOTOR TAHUNAN

25

20%

30

60-80%

35

160-200%

45

300-400%

55

800-1000%

65

1600-2000%

Bagaimana rasio ini dapat diterapkan?

Mari kita pertimbangkan seorang berusia 55 tahun dengan pendapatan kotor tahunan sebesar $90.000. Dia memiliki tabungan tunai sebesar $150.000 dan aset investasi senilai $700.000.

Artinya, rasio aset investasi terhadap gaji kotornya adalah:

($150.000 + $700.000) $90.000 =9,44 =944%

Persentase ini berarti dia dapat mengganti gaji kotor tahunannya sebanyak 9,44 kali – yaitu kurang dari 10 tahun. Tujuannya adalah untuk terus meningkatkan dana pensiun dan tabungannya hingga rasio ini mencapai minimal 2000%, yang merupakan masa penggantian selama 20 tahun.

Bagaimana rasio ini dapat membantu saya?

Anda dapat menggunakan rasio ini sebagai target tabungan dan investasi tunai Anda. Anggap saja ini perkiraan kasar untuk menggantikan penghasilan Anda saat ini untuk masa pensiun 20 tahun.

Sama seperti rasio keuangan pribadi lainnya dalam daftar ini, metrik ini tidak boleh digunakan sebagai pengukuran yang berdiri sendiri. Keuangan pribadi Anda akan memiliki keadaan unik yang harus dipertimbangkan ketika menentukan bagaimana rasio ini dapat memandu Anda. 

10. Rasio Aset Investasi terhadap Total Aset

Apa itu?

Metrik keuangan pribadi ini mengukur persentase total aset Anda yang diinvestasikan.

Bagaimana cara menghitungnya?

Berikut ini cara Anda menghitung rasio aset investasi terhadap total aset:

ASET INVESTASI TOTAL ASET =RASIO ASET INVESTASI TERHADAP TOTAL ASET

Nilai apa yang saya gunakan?

Aset investasi adalah aset yang dimiliki dengan tujuan menghasilkan keuntungan berupa pendapatan tambahan di masa depan. Ini dapat mencakup reksa dana, saham, obligasi, real estat, dan dana pensiun seperti 401(k)s dan IRA. 

Total aset Anda mencakup semua aset nilai finansial yang Anda miliki. Hal ini mencakup aset tunai dan hampir tunai, dan aset tidak likuid (real estate, barang antik, karya seni, dll), serta investasi jangka pendek dan jangka panjang.

Apa tolok ukur yang bagus?

Berikut daftar tolok ukur yang perlu dipertimbangkan berdasarkan usia:

Bagaimana rasio ini dapat diterapkan?

Sebagai contoh, katakanlah Anda memiliki $8.000 di rekening pialang, $10.000 diinvestasikan di saham, $250.000 di 401(k), dan $80.000 di real estat. Ini sama dengan $348.000 untuk aset investasi.

Selanjutnya, Anda akan menambahkan sisa aset Anda ke nilai aset investasi Anda. Katakanlah rumah Anda dinilai sebesar $400.000, kendaraan Anda bernilai total $40.000, tabungan tunai setara dengan $30.000, dan aset lainnya bernilai $25.000. Ini akan membuat total aset Anda sama dengan $348.000 + ($400.000 + $40.000 + $30.000 + $25.000) =$843.000.

Setelah Anda memiliki dua nilai ini, Anda dapat menghitung rasio aset investasi terhadap total aset:

$348.000 $843.000 =0,41 =41%

Bagaimana rasio ini dapat membantu saya?

Rasio aset investasi terhadap total aset membantu Anda melacak di mana Anda menyimpan uang tabungan Anda. Penting untuk memiliki keseimbangan yang baik antara investasi keuangan dan aset pribadi lainnya.

11. Alokasi Aset

Apa itu?

Alokasi aset (istilah lain untuk diversifikasi) mengacu pada cara Anda memilih untuk mendistribusikan tabungan Anda dalam berbagai investasi, sehingga Anda dapat menyeimbangkan risiko dan keuntungan dalam portofolio. Strategi investasi ini membantu Anda menyesuaikan persentase setiap aset investasi sesuai dengan toleransi risiko Anda.

Bagaimana cara menghitungnya?

Alokasi aset pribadi Anda adalah jumlah investasi dan tabungan Anda, seperti:

(% SAHAM) + (% OBLIGASI) + (% EFEK PASAR UANG) + (% TABUNGAN TUNAI) =100% PORTOFOLIO INVESTASI

Nilai apa yang saya gunakan?

Investasi saham mencakup ekuitas yang memberikan pengembalian variabel, sedangkan obligasi dianggap sebagai sekuritas pendapatan tetap karena membayar sejumlah bunga tetap. 

Sekuritas pasar uang meliputi Treasury Bills, Sertifikat Deposito, dan reksa dana pasar uang. Surat berharga jangka pendek dengan jangka waktu kurang dari 90 hari disebut juga setara kas.

Tabungan tunai mencakup alat pembayaran yang sah, tagihan, koin, cek, dan dana tersebut di rekening giro dan tabungan.

Apa tolok ukur yang bagus?

Alokasi aset ideal Anda akan sangat bergantung pada usia dan toleransi risiko Anda, dan dapat berkisar dari konservatif hingga agresif. Jadi, Anda harus mengubahnya seiring berjalannya waktu, seiring mendekati usia pensiun.

Berikut beberapa tolok ukur umum berdasarkan toleransi risiko:

60-65% Obligasi / 25-30% Saham / 5-15% Kas dan Setara 

35-40% Obligasi / 50-55% Saham / 5-10% Kas dan Setara 

25-30% Obligasi / 60-65% Saham / 5-10% Kas dan Setara 

Bagaimana rasio ini dapat diterapkan?

Jika Anda berusia akhir 50-an dan ingin pensiun dalam waktu 5 tahun, toleransi risiko Anda mungkin konservatif. Oleh karena itu, Anda sebaiknya mempertimbangkan untuk menyeimbangkan portofolio Anda sehingga Anda memiliki lebih banyak uang yang diinvestasikan dalam sekuritas pendapatan tetap, lebih sedikit pada saham, dan sebagian lagi dalam bentuk uang tunai.

Berikut adalah contoh portofolio konservatif:

63% Obligasi + 27% Saham + 10% Setara Kas =100% aset keuangan

Rasio investasi (lihat #7 dalam daftar ini) juga dapat membantu Anda menerapkan alokasi aset yang sesuai dengan usia Anda.

Bagaimana rasio ini dapat membantu saya?

Menggunakan rasio keuangan pribadi ini akan membuat Anda tetap sejalan dengan alokasi aset yang sesuai untuk jangka waktu pensiun Anda. Saat Anda semakin dekat dengan masa pensiun, Anda sebaiknya mengambil risiko yang lebih kecil untuk meningkatkan keamanan finansial. 

12. Kekayaan Bersih

Apa itu?

Kekayaan bersih umumnya didefinisikan sebagai segala sesuatu yang Anda miliki dikurangi semua utang Anda. Dengan kata lain, ini adalah nilai seluruh aset Anda jika Anda menjual semua milik Anda, setelah Anda melunasi semua hutang Anda.

Bagaimana cara menghitungnya?

Berikut adalah rumus dasar untuk menghitung kekayaan bersih Anda :

ASET (Yang Anda Miliki) – LIABILITAS (Utang Anda) =KEKAYAAN BERSIH

Nilai apa yang saya gunakan?

Aset Anda adalah segala sesuatu yang Anda miliki yang memiliki nilai moneter, seperti uang tunai, real estat, kendaraan, dan laba bersih dari investasi.

Kewajiban adalah semua utang Anda – pinjaman mobil, saldo kartu kredit, pinjaman pelajar, hipotek, tagihan medis, dll.

Ada berbagai cara untuk menentukan aset Anda. Beberapa orang hanya memasukkan aset besar seperti real estat, investasi, dan uang tunai. Lainnya mencakup semuanya hingga ke Cina. Terserah Anda, pilih saja aset yang memberikan hasil paling realistis.

Apa tolok ukur yang bagus?

Kekayaan bersih Anda mungkin negatif untuk waktu yang lama, ketika Anda sedang membangun karier dan hanya memiliki sedikit ekuitas di rumah Anda. Seiring bertambahnya usia, Anda ingin kekayaan bersih Anda terus bertambah besar seiring berjalannya waktu. Hal ini menunjukkan peningkatan pendapatan, penurunan utang, atau keduanya. 

Berikut beberapa tolok ukur umum kekayaan bersih menurut usia:

Bagaimana rasio ini dapat diterapkan?

Sebagai contoh, asumsikan Anda memiliki aset senilai $500.000. Ini termasuk nilai penilaian rumah Anda sebesar $325.000, investasi senilai $125.000, kendaraan senilai $35.000, dan aset lainnya senilai $15.000.

Selain itu, Anda menghitung total utang Anda sebesar $235.000. Ini adalah jumlah saldo hipotek Anda sebesar $200.000, pinjaman mobil sebesar $25.000, dan utang kartu kredit sebesar $10.000.

Kekayaan bersih Anda kemudian akan dihitung sebagai:

$500.000 (aset) – $235.000 (kewajiban) =$265.000.

Jika Anda berusia 55 tahun, dan gaji tahunan Anda adalah $65.000, maka kekayaan bersih Anda berada dalam kisaran yang sehat.

Bagaimana rasio ini dapat membantu saya?

Kekayaan bersih Anda adalah ukuran total kekayaan Anda, dan merupakan indikator yang baik untuk kesehatan keuangan Anda.  Semakin tinggi angkanya, semakin besar stabilitas keuangan yang Anda miliki.

13. Rasio Kekayaan Jutawan Sebelahnya

Apa itu?

Rasio ini (juga dikenal sebagai kekayaan bersih yang ditargetkan ) dibuat oleh penulis buku “The Millionaire Next Door”, dan menunjukkan berapa kekayaan bersih Anda yang seharusnya jadilah seperti Anda sedang membangun kekayaan.

Nilai mewakili posisi di salah satu dari tiga kategori:

1. Akumulator kekayaan yang kurang (UAW) – Kekayaan bersih aktual adalah 50% atau kurang dari kekayaan bersih yang ditargetkan
2. Rata-rata akumulator kekayaan (AAW) – Kekayaan bersih aktual mendekati kekayaan bersih yang ditargetkan
3. Akumulator kekayaan (PAW) yang luar biasa – Kekayaan bersih sebenarnya dua kali lipat dari kekayaan bersih yang ditargetkan

Bagaimana cara menghitungnya?

Persamaan untuk menentukan rasio target kekayaan bersih Anda adalah:

(UMUR x PENDAPATAN KOTOR) 10 =KEKAYAAN BERSIH YANG DITARGETKAN

Nilai apa yang saya gunakan?

Usia Anda adalah usia Anda saat ini. Pendapatan kotor Anda adalah total pendapatan rumah tangga tahunan sebelum pajak dari semua sumber kecuali warisan. Ini termasuk pendapatan yang diperoleh dari gaji dan bonus, serta pendapatan diterima di muka dari bunga investasi dan dividen.

Apa tolok ukur yang bagus?

Nilai rasio menjadi patokannya – mewakili kekayaan bersih yang harus Anda targetkan pada usia tertentu.

Namun, Anda dapat membandingkan target kekayaan bersih Anda dengan kekayaan bersih sebenarnya untuk memberikan gambaran seberapa dekat Anda dalam mencapai tujuan kekayaan Anda.

Jika ternyata kekayaan bersih Anda yang sebenarnya kurang dari 50% dari kekayaan bersih yang ditargetkan, maka Anda dianggap sebagai akumulator kekayaan yang kurang (UAW) dan Anda harus berusaha meningkatkan upaya menabung.

Jika kekayaan bersih Anda yang sebenarnya setara dengan kekayaan bersih yang Anda targetkan (AAW), maka Anda berada di jalur yang tepat untuk membangun kekayaan yang cukup untuk menciptakan gaya hidup pensiun yang serupa dengan yang Anda miliki sekarang.

Jika tujuan Anda adalah menghasilkan jutaan dolar saat pensiun (PAW), maka Anda harus terus meningkatkan kekayaan bersih Anda hingga setidaknya dua kali lipat jumlah kekayaan bersih yang Anda targetkan.

Bagaimana rasio ini dapat diterapkan?

Pertama, jumlahkan pendapatan kotor tahunan rumah tangga Anda. Misalnya, mungkin Anda menghasilkan $75.000 dari pekerjaan rutin Anda, dan hasil investasi sebesar $10.000 per tahun. Jika digabungkan, jumlahnya sama dengan $85.000. Anggap saja saat ini Anda berusia 53 tahun.

Kekayaan bersih yang Anda targetkan adalah:

(53 x 85.000) 10 =$450.500

Jika kekayaan bersih Anda saat ini kurang dari $225.250, maka Anda akan dianggap sebagai akumulator kekayaan yang kurang, dan tabungan Anda tertinggal.

Jika kekayaan bersih Anda saat ini adalah $453.000, maka Anda akan dikategorikan sebagai rata-rata akumulator kekayaan, dan berada di jalur yang tepat untuk pensiun tepat waktu.

Dan, jika kekayaan bersih Anda saat ini lebih dari $901.000, maka Anda akan menjadi pengumpul kekayaan yang luar biasa, dan seharusnya menjadi multi-jutawan pada saat Anda pensiun.

Bagaimana rasio ini dapat membantu saya?

Mempertimbangkan kategori mana yang Anda ikuti akan memberi Anda beberapa panduan mengenai kebiasaan menabung Anda. Jika ternyata kekayaan bersih Anda saat ini kurang dari setengah kekayaan bersih yang ditargetkan, maka Anda tahu bahwa Anda perlu membuat keputusan yang lebih baik dalam hal pembelanjaan.

Menghindari hutang, hidup sesuai kemampuan Anda, dan memotong pengeluaran dapat membantu Anda meningkatkan tingkat tabungan dan membangun kekayaan bersih, sehingga Anda dapat mencapai tujuan kehidupan finansial Anda.

14. Rasio Likuiditas Dasar

Apa itu?

Istilah “likuiditas” mengacu pada kemampuan Anda untuk mengubah aset keuangan Anda menjadi uang tunai. Untuk tujuan keuangan pribadi, tingkat likuiditas mencerminkan potensi seseorang untuk menutupi pengeluaran yang berkomitmen dengan aset likuid seperti kas dan setara kas.

Nilai rasio mewakili jumlah bulan aset likuid Anda dapat menutupi biaya hidup rutin Anda. Metrik ini juga dikenal sebagai rasio cakupan.

Rasio yang berguna ini dapat membantu Anda mengetahui seberapa siap Anda menghadapi krisis keuangan seperti kehilangan pekerjaan atau keadaan darurat medis. Ini menjawab pertanyaan, berapa lama tabungan saya akan bertahan jika saya kehilangan semua sumber pendapatan?

Bagaimana cara menghitungnya?

Berikut cara menghitung rasio likuiditas dasar:

ASET LIKUID BEBAN BULANAN =RASIO LIKUIDITAS

Nilai apa yang saya gunakan?

Aset likuid mencakup yang berbentuk kas dan setara kas, seperti rekening giro dan tabungan, surat utang negara, obligasi tabungan, dan dana pasar uang. Any financial asset that can quickly be turned into cash without losing significant value is considered a liquid asset.

Monthly expenses are all of your regular household expenses over a 30-day period. This includes both necessary (non-discretionary) and unnecessary (discretionary) expenses.

This ratio would not consider assets such as real estate, vehicles, or retirement accounts.

What’s a good benchmark?

Most personal finance professionals advise clients to have an ideal liquidity ratio that covers 3 to 6 months of expenses. This could help you cover several months of living expenses in the event of a sudden financial emergency. 

How can this ratio be applied?

As an example, we’ll assume you have $20,000 in cash savings, and cash equivalents worth a net value of $10,000. Also, your monthly household expenses add up to $6,000. Using these values, we could calculate your liquidity ratio to be:

($20,000 + $10,000) ÷ $6,000 =5

Using the formula, we find that your liquidity ratio is 5, which means your liquid funds could cover 5 months of expenses.

How can this ratio help me?

The financial liquidity ratio is a simple but important calculation and a good indicator of financial security. Its value indicates how long you can be supported solely by your liquid assets.

This is important to know if you suddenly lose your job and have no primary sources of income for an indefinite period of time.

15. Liquid Assets to Net Worth

What is it?

The liquid assets-to-net worth ratio calculates the percentage of an individual’s net worth that is cash and cash equivalents.

How do I calculate it?

Here is how to calculate the liquid assets to net worth ratio:

LIQUID ASSETS ÷ NET WORTH =LIQUID ASSETS-TO-NET WORTH RATIO

What values do I use?

Liquid assets are those monetary assets that can quickly be converted to cash. They could include money in bank accounts, money market funds, and Treasury bills.

Your net worth is the value of your total financial assets, minus all debts owed.

What’s a good benchmark?

The common benchmark recommended for this ratio is a minimum of 15%.

How can this ratio be applied?

This is a simple ratio to apply to your own finances. Simply add up all of your cash and cash-equivalent assets and divide the total by your net worth.

Perhaps you have $15,000 in your bank accounts, and a money market fund with a balance of $20,000. This means your liquid assets would total $35,000.

Using the calculation above (#12), we know that your net worth is $265,000.

Now, we can determine your liquid assets-to-net worth ratio:

$35,000 ÷ $265,000 =.13 =13%

How can this ratio help me?

It’s important to have a reasonable percentage of your assets in cash or near-cash form. This will prepare you for unexpected circumstances that require fast access to cash.

However, if your percentage is too high, you will be missing out on greater returns possible through long-term investments.

16 Net Investment Assets to Net Worth

What is it?

This personal finance ratio measures the percentage of an individual’s net worth that is held in investment assets. 

How do I calculate it?  

Here is how to calculate the net investment assets-to-net worth ratio:

(INVESTMENT ASSETS – ALL FEES) ÷ NET WORTH =NET INVESTMENT ASSETS-TO-NET WORTH RATIO

What values do I use?

Investment assets are those tangible and intangible assets that return profits, such as stocks, bonds, mutual funds, cash equivalents, real estate, and retirement savings.

The returns realized could be in the form of capital gains, interest income, dividends, annuity payments or rental income. When you subtract any administrative fees, you are left with the net value of your investment assets.

Net worth, as described in #12 above, is the total of your assets minus your liabilities. 

What’s a good benchmark?

As a general benchmark, a good target is 50% or more.

How can this ratio be applied?

Let’s say you calculate the net value of your stocks at $47,000, annuities at $25,000, and a mutual fund at $75,000. This adds up to net investment assets valued at $147,000.

Using the calculation above (#12), we know that your net worth is $265,000.

Now, we can determine your net investment assets-to-net worth ratio:

$147,000 ÷ $265,000 =.55 =55%

How can this ratio help me?

If you want to be prepared for a comfortable retirement, it’s important to keep a significant portion of savings invested in assets that can generate a healthy return.

17. Solvency Ratio

What is it?

Use this ratio to determine if you could pay off all of your debt using only the assets you currently own.

How do I calculate it?

Here is how to calculate the solvency ratio:

NET WORTH ÷ TOTAL ASSETS =SOLVENCY RATIO

What values do I use?

Net worth, as described in #12 above, is the total of your assets minus your liabilities. 

Total assets would be the value of your assets that you used to calculate net worth. This could include cash and cash equivalents, real estate, vehicles, and net returns from investments. You could even choose to account for your antiques, collectibles, jewelry and art collection.

What’s a good benchmark?

In general, a solvency value of 50% or greater is considered ideal. However, this ratio should vary based on age.

As a young adult just getting started in a career and putting 3% down for a new home, your solvency ratio will be much less. However, as you get older and prepare for retirement, your solvency ratio should get higher as you increase your income, pay off debt, and build your net worth.

The higher your solvency ratio, the more financially secure you are.

How can this ratio be applied?

Let’s use the net worth we calculated in #12, which was $265,000, and the total assets we got in #10, which equaled $843,000.

With these numbers, your solvency ratio would be $265,000 ÷ $843,000 =.31 =31%

How can this ratio help me?

The solvency ratio will tell you what percentage of your total assets isn’t carried with debt, and gives you a big picture view of how your wealth is growing, and debt levels are diminishing, over time. 

18. Current Ratio

What is it?

A current ratio represents one’s capacity to meet short-term debt payments with short-term assets only. With this metric, you can measure how long your financial assets could cover your debt obligations due within one year.

How do I calculate it?

To calculate your current ratio, use the following formula:

TOTAL CURRENT ASSETS ÷ TOTAL CURRENT LIABILITIES =CURRENT RATIO

What values do I use?

Current assets include cash savings and other liquid assets that can be converted to cash within one year.

Current liabilities refer to all debt payments due within one year. This would comprise of monthly minimum payments for credit cards, auto loans, student loans, mortgage loans or rent, etc. for one year’s time.

What’s a good benchmark?

If your current assets equaled your current debts, this would mean your current ratio is 1, and you have enough liquid assets to cover one year of debt payments. However, that would mean you would deplete your liquid assets and have no cash left.

Shooting for a current ratio greater than 1 – for example, 1.5 or 2 – would give you greater financial stability and flexibility if you were ever faced with a serious financial crisis that lasted several months.

How can this ratio be applied?

Perhaps your cash savings total $10,000, money market funds equal $10,000, and you have a Certificate of Deposit valued at $25,000 that matures within 3 months. This would equal $45,000 in current assets.

In addition, your total debt payments for one year add up to $35,000.

This would result in a current ratio of $45,000 ÷ $35,000 =1.28

How can this ratio help me?

Knowing your current ratio will help you plan wisely for financial emergencies that last up to one year. If you can build your liquid assets to a value that’s twice your current debts, you’ll be able to avoid unfortunate consequences, such as going into default, getting evicted, or damaging your credit score.

19. Debt-to-Income (DTI Ratio)

What is it?

The debt-to-income ratio measures the percentage of your household income that’s being spent on paying off debt. Lenders use this metric to determine your ability to repay loans.

It’s also known as the personal debt service ratio , and reflects a balance between debt and income.

How do I calculate it?

Here is how to calculate your debt-to-income ratio:

TOTAL MONTHLY DEBT PAYMENTS ÷ MONTHLY GROSS INCOME =DEBT-TO-INCOME RATIO

What values do I use?

Your monthly debt payments are comprised of credit card payments, student loans, auto loans, mortgage payments, and all other monthly debt obligations you may have. If you rent rather than own, add in your monthly rent payment.

Gross income includes all forms of monthly income, before taxes and deductions are taken out. This could be paychecks, interest income and dividends, child support and alimony, side hustle income, etc. 

What’s a good benchmark?

Lenders typically do not want to see a debt-to-income ratio greater than 36%. However, the lower you can keep this ratio, the more financially stable you will be.

If your DTI starts getting close to 40-50%, you know you’ll need to step up your efforts to get more debt paid off.

Also, the lower your DTI ratio, the better your credit score and the more likely lenders will favor your credit history and be open to working with you. If your DTI is too high, they will see you as a borrowing risk.

How can this ratio be applied?

For example, if your monthly debt payments total $1,800 and your monthly gross income equals $6,500, then your DTI would be:

$1,800 ÷ $6,500 =.27 or 27%

How can this ratio help me?

This personal finance ratio will give you an idea of how well you are paying down your debts. A high DTI will adversely affect your ability to acquire new debt, as well as prevent you from qualifying for the lowest interest rates.

If your DTI consistently gets lower each month, you know you’re staying on track with your debt payoff plan. If it starts to increase you’ll be aware that your debt is creeping back up.

20. Non-mortgage Debt-servicing Ratio

What is it?

This personal finance ratio is similar to the debt-to-income metric (#19), except it measures only the percentage of income that is applied toward non-mortgage debt.

How do I calculate it?

Here is how to calculate your non-mortgage debt-servicing ratio:

(MONTHLY DEBT PAYMENTS – MONTHLY MORTGAGE PAYMENT) ÷ (MONTHLY GROSS INCOME) =NON-MORTGAGE DEBT-SERVICING RATIO

What values do I use?

Similarly to the DTI ratio (#19), the monthly debt payments include all payments for consumer debt, such as credit cards, student loans, auto loans, bank loans, etc. You would not add your monthly mortgage payment to the total.

Gross income includes all forms of monthly income, before taxes and deductions are taken out. This could be paychecks, interest income and dividends, child support and alimony, side hustle income, etc. 

What’s a good benchmark?

Considering this ratio measures the percentage of your income going toward consumer debt payments, you should try to keep this number as low as possible. Generally, a value of 15% or less is considered a healthy ratio.  

How can this ratio be applied?

Let’s say that all of your monthly debt payments, except for your mortgage payment, adds up to $1,000. Also, your gross income comes to $7,000 a month. This would mean your non-mortgage debt servicing ratio would be $1,000 ÷ $7,000 =.14 =14%.

How can this ratio help me?

This ratio will help you keep in check the amount of consumer debt you take on. If your percentage is 20% or higher, this is a good indication that you should stop acquiring more debt and focus your efforts on paying off the debt you have.

21. Household Debt Service Ratio

What is it?

Also known as the financial obligations ratio, this helpful metric compares the combined debt of a household to after-tax income.

How do I calculate it?

Here is how to calculate the household debt service ratio:

MONTHLY HOUSEHOLD DEBT PAYMENTS ÷ MONTHLY AFTER-TAX INCOME =HOUSEHOLD DEBT SERVICE RATIO

What values do I use?

Monthly household debt consists of the total debt payments in one month for a single household. It includes credit card debt, bank loans, student loans, mortgage loans, lease payments, payday loans, and any other debt that accrues interest and requires payments.

After-tax income (also known as disposable income) is the amount of income you receive after all taxes have been taken out. It’s the money available to spend and save at your discretion.

What’s a good benchmark?

The lower your household debt service ratio, the greater financial stability you have. A high number means you are spending a significant percentage of your after-tax income on debt payments.

Keeping the percentage at 25% or lower puts you in a good position to keep up with debt payments and have enough disposable income to set some aside in savings.

How can this ratio be applied?

First, you would need to total your monthly payments for all debt balances. For example, perhaps your debt payments add up to $2,000 each month. In addition, your after-tax income comes to $8,000 a month. This would make your household debt ratio be $2,000 ÷ $8,000 =.25 =25%.

How can this ratio help me?

Knowing your household debt service ratio will help you determine if you’re carrying too much debt. Many financial ratios use gross income as a factor, but this ratio uses your after-tax income. This gives you a more realistic picture of your financial health.

22. Debt to Assets Ratio

What is it?

This personal finance ratio compares one’s debt obligations to total assets, and reflects a person’s borrowing position. An individual’s debt to assets ratio determines their ability to acquire more debt.

How do I calculate it?

Here is how to calculate the debt to assets ratio:

TOTAL DEBT ÷ TOTAL ASSETS =DEBT TO ASSETS RATIO

What values do I use?

Total debt would consist of current balances for all loans and consumer debts, such as a student loan, mortgage loan, auto loan, personal loan, and credit cards.

Total assets are the entirety of one’s tangible and intangible possessions. These would include the current value of all financial investments, real estate and property, cash and cash-equivalents, antiques and collectibles, etc.

What’s a good benchmark?

The ideal debt to asset ratio is between .3 and .6. This means that the total of your debts (as listed above) would be between 30% to 60% of the current value of your total assets.

However, to minimize debt is always a wise financial decision, so keeping this metric as low as possible will set you up for greater financial security.

How can this ratio be applied?

If your total liabilities equal $400,000 and your total assets were valued at $900,000, then your debt to assets ratio would be $400,000 ÷ $900,000 =.44 =44%.

How can this ratio help me?

This measurement will inform you of your borrowing position – that is, if you’re in a good position to borrow debt at a low rate.  The higher the ratio, the greater debt risk you become to lenders.

Use this metric to determine if you need to focus on paying down your debt balances. 

23. Net Debt position

What is it?

The net debt formula compares total debts to liquid assets. The value of this metric indicates one’s ability to meet all current debt obligations using cash and cash equivalents.

How do I calculate it?

Here is how to calculate your net debt position:

(SHORT-TERM DEBT + LONG-TERM DEBT) – (CASH + CASH EQUIVALENTS) =NET DEBT POSITION

What values do I use?

This calculation requires the sum of all debts, both short-term and long-term. This could include mortgage loans, personal loans, student loans, any credit card outstanding balance, etc.

The total of your debts are then subtracted from the sum of your cash savings and cash equivalents. Cash equivalents are short-term investment funds that can be converted to cash quickly, such as Certificates of Deposit, Treasury Bills, and money market funds. Typically, they do not include stock equities because they fluctuate in value.

What’s a good benchmark?

A positive net debt position means you have more debt than liquid assets. This is very common with personal finances (as opposed to a corporation). Very few people have enough cash to pay their entire debt balances!

The goal is to get as close to zero as possible. The smaller the sum, the better financial position you’ll be in.

How can this ratio be applied?

To apply this ratio to your own finances, you would add up your short-term and long-term debt balances first. Perhaps your total debt balances come to $250,000.

Then, you would calculate the total value of your cash and cash equivalents. Let’s say this adds up to $95,000.

Using these values, we could see that your net debt would be $250,000 – $95,000 =$155,000

How can this ratio help me?

This calculation gives you a good indication of your ability to pay off all debts using your cash savings and other liquid assets. If you have a positive net debt position, you should prioritize debt payoff and cash savings.

24. Demand Debt Ratio

What is it?

The demand debt ratio reflects your ability to pay off all demand debt (also known as callable debt) if necessary. Demand debt is any debt that a lender can demand you pay back at any time. This includes any debt that does not have a specific length of term or payback schedule.

How do I calculate it?

Here is how to calculate your demand debt ratio:

(Liquid + sellable assets) ÷ Total demand debt =Demand debt ratio

What values do I use?

If you want to know your demand debt ratio, you would consider the total of your cash savings, cash equivalents, and any assets that could be sold quickly for cash. In other words, all of the funds available to you to pay the debt being demanded.

Demand debts are those that don’t have any set payoff timeline, such as credit cards or medical bills. Fixed loans, such as a mortgage or auto loan, are not considered demand debts.

What’s a good benchmark?

There is no recommended benchmark for this ratio, but you do want to keep the value greater than 1. A demand debt ratio below 1 means that you have more demand debt than liquid assets, which can put you in an unstable financial position.

How can this ratio be applied?

As an example, let’s say your cash savings and sellable assets add up to a value of $20,000, and your credit card balances total $12,000. This would mean your demand debt ratio would be $20,000 ÷ $12,000 =1.67.

How can this ratio help me?

This personal finance ratio can be used with other metrics to determine your financial stability. Having more demand debt than you can repay with cash is an unstable position you want to avoid.

25. Personal Cost of Debt

What is it?

It costs to borrow money, and this ratio can tell you the total interest rate you’re paying across varied interest rates. 

How do I calculate it?

Here is how to calculate your personal cost of debt as a rate:

[(LOAN 1 ÷ TOTAL DEBT) x (LOAN 1 INTEREST RATE)] + [(LOAN 2 ÷ TOTAL DEBT) x (LOAN 2 INTEREST RATE)] =PERSONAL COST OF DEBT

What values do I use?

To calculate your personal cost of debt, you would need the balance and interest rate of every debt you currently have. You can refer to your credit card bills, mortgage statement, auto loan bill, etc., to find this information.

What’s a good benchmark?

Of course, you want to minimize your cost of debt by qualifying for the lowest interest rates possible. Your benchmark should be that percentage which is below the annual rate of return on your investments. 

As a general rule of thumb, you could target a value of 4.5% or lower for your cost of debt. This is because the long-term average return on the stock market is about 7% per year, which comes out to approximately 4.5% after taxes.

To lower your cost of debt, focus on paying off your balances with the highest interest rate first.

How can this ratio be applied?

Calculating your personal cost of debt ratio requires knowing the balance of each of your debts, the interest rate for each debt, and the total of your debts.

Perhaps you have 3 debt balances. A car loan, a student loan, and one credit card.

Your car loan balance is $8,000, with an interest rate of 8%.

Your student loan has a balance of $20,000, at an interest rate of 5%.

And, your credit card has a balance of $3,000, with an interest rate of 12%.

The total of these three debt balances equals $8,000 + $20,000 + $3,000 =$31,000.

Now, we can calculate the personal cost of debt as an interest rate:

[($8,000 ÷ $31,000) x .08] + [($20,000 ÷ $31,000) x .05] + [($3,000 ÷ $31,000) x .12] =.06 =6%

How can this ratio help me?

This personal finance metric will inform you if you’re paying too much in debt interest. Using this information, you can decide if you need to improve your credit score, transfer debt to lower-interest options, and which debt balances to pay off first.

Knowing your cost of debt can also guide you in prioritizing debt payoff or investments.

26. Credit Utilization (Debt to Limit Ratio)

What is it?

This ratio calculation (also known as the debt-to-limit ratio) lets you know the percentage of your available revolving credit limits that are currently debt balances. With this metric, you can know how much of your total available credit you’re using, and what is still available.

How do I calculate it?

Here is how to calculate your credit utilization ratio:

TOTAL REVOLVING DEBT BALANCES ÷ TOTAL REVOLVING CREDIT LIMITS =CREDIT UTILIZATION RATIO

What values do I use?

Credit utilization ratios are calculated with revolving credit only. This means all credit cards, and other lines of credit that do not have a specific end-date.

Therefore, debt such as mortgage loans or auto loans are not considered in this ratio.

What’s a good benchmark?

Financial experts commonly advise keeping a credit utilization rate of 30% or less. This will help you maintain a favorable credit score and qualify for lower interest rates.

For example, if you have $25,000 in credit available, you should keep your debt balances at $7,500 or less.

How can this ratio be applied?

Let’s say you have 3 credit cards. The first has a credit limit of $6,000 with a balance of $1,000. The second has a limit of $12,000 with a balance of $5,000. And the third has a limit of $15,000 with a balance of $3,000.

Your utilization rate would then be ($1,000 + $5,000 + $3,000) ÷ ($6,000 + $12,000 + $15,000) =.27 =27%

How can this ratio help me?

If your credit utilization rate exceeds 30%, you will start to experience a negative impact on your credit score. It also indicates an excessive reliance on debt, which can cause lenders to see you as a high-risk applicant.

Check your percentage to determine if you need to focus your efforts on paying down your debt balances, and improving your financial habits so you’re not acquiring more debt.

27. 50/20/30 Budgeting Ratio

What is it?

This calculation is unique, in that it will help you optimize your budget and allocate your income so you can meet your financial goals. Senator Elizabeth Warren created this popular budget guideline to help others with their budgeting efforts.

Also known as the “percentage breakdown budget”, it’s become a common budgeting method due to its simplicity and effectiveness.

How do I calculate it?

Each number in the ratio’s title represents a percentage of your income that you apply to a budget category. The three categories include needs, wants, and savings.

50% ESSENTIAL SPENDING + 30% NON-ESSENTIAL SPENDING + 20% SAVINGS =50/30/20 BUDGETING RATIO

What values do I use?

With this budgeting ratio, you would need to separate all of your monthly expenses into the 3 categories. 

So, essential spending would be those expenses that are necessary to live. This would include housing costs, utilities, groceries, transportation, and other necessary expenses. These would make up 50% of your budgeted after-tax income.

Non-essentials would be those costs that are optional and flexible , such as subscriptions and memberships, entertainment, dining out, clothing, vacations, etc. You would allot 30% of your after-tax income to these expenses.

Lastly, you would dedicate 20% of your budget to savings, investing, and debt payoff.

What’s a good benchmark?

The ratio is the benchmark. You would strive to maintain the optimal 50/30/20 percentages in your budget.

However, every budget is personal, and you’ll need to decide if this structure is the best for your personal situation. You may decide to increase your savings percentage, or decrease your discretionary costs.

How can this ratio be applied?

Perhaps your primary net income is $7,000 per month. Using the 50/30/20 budget ratio as a guide, you would want to keep all of your essential expenses close to $3,500. Also, you should spend no more than $2,100 on non-essential expenses, and you should have $1,400 available for savings and debt payoff.

How can this ratio help me?

This is a simple, straightforward budgeting model that can be applied quickly to your income. There are only 3 categories to monitor and update, which helps make the budgeting habit easier to stick to. 

If you’ve struggled with budgeting in the past because it just seemed too complicated, try the 50/30/20 budget. You may find that it’s all you need to keep your finances in order and accomplish your future goals.

28. Personal Net Cash Flow

What is it?

An individual’s personal net cash flow is not a ratio of two values, but rather a profitability metric that calculates the sum of one’s cash inflows and outflows.

This value indicates the amount a person has gained or lost once all expenses have been subtracted from income, and reflects one’s capacity for savings.

How do I calculate it?

Here is how to calculate your personal net cash flow:

TOTAL MONTHLY AFTER-TAX INCOME – TOTAL MONTHLY EXPENSES =PERSONAL NET CASH FLOW

What values do I use?

Your income could include your monthly take-home income, any investment interest or dividends, alimony or child support, side hustle income, and any source that generates a cash inflow for you. The key is to use income after taxes and deductions have been taken out.

Expenses consist of all discretionary and non-discretionary costs that are covered by your income, such as all of your bills, debt payments, food costs, gas and transportation costs, entertainment, subscriptions, etc.

What’s a good benchmark?

Generally, having a net cash margin that accounts for at least 15% of your income will give you enough to meet your saving goals and pay off debt.

How can this ratio be applied?

If you brought in an after-tax income of $7,000, and your total monthly expenses equaled $6,200, then your net cash flow would be $800. This means you would have 11% of your take-home pay to put in savings and investments.  

How can this ratio help me?

Checking your personal net cash flow will help you make profitable decisions with your budget. If you get a negative value, this means your expenses are greater than your income, and you probably rely too much on debt.

This is an indicator that you need to cut expenses or increase income.  Try to increase your net cash flow so you can have more cash available for savings.

29. Passive Income Ratio

What is it?

If you are interested in generating passive income as part of your cash flow strategy, this ratio will help you understand how close you are to replacing your regular income.

How do I calculate it?

Here is how to calculate your passive income ratio:

PASSIVE INCOME ÷ NON-PASSIVE INCOME =PASSIVE INCOME RATIO

What values do I use?

Passive income is all income generated without your direct involvement. This could include income from investments, rental income, or certain online businesses.

Non-passive income is the income you generate from a regular day job or side hustle, where you actively perform tasks or create products or services in exchange for payment.

What’s a good benchmark?

Your target ideal ratio depends on your financial goals. If you are trying to completely replace your primary income, then your goal would be a ratio of 1 or greater. If you would be happy just replacing half of your primary income, then you would shoot for a ratio of .5, which represents 50% of your primary income.

How can this ratio be applied?

As an example, let’s say you had an online business that generated a passive income of $2,000 each month. You also received $200 a month in investment income.

In addition, your regular day job brought in $5,000 a month. You also made $200 a month from your side hustle with a drive-sharing company.

Your passive income ratio would then be ($2,000 + $200) ÷ ($5,000 + $200) =.42 =42%

How can this ratio help me?

Passive income should be a part of every person’s financial strategy. There are several good reasons for this, such as securing an income even if you become unable to work due to injury or illness.

Also, primary income is typically an exchange of time for money, and our time is limited. With passive income, you are not reliant on how many hours you work, and you can scale as high as you want.

Checking your passive income ratio is also helpful to track how close you are to financial independence.

30. Side Hustle Income Ratio

What is it?

Side hustles are separate from your regular day job, but can be a great source of additional income. Typically, a side hustle is a job that is more flexible and gives you more control over the hours you work and the income you make.

This ratio will tell you what percentage of your total income is from your side hustles.

How do I calculate it?

Here is how to calculate your side hustle income ratio:

GROSS SIDE HUSTLE INCOME ÷ GROSS PRIMARY INCOME =SIDE HUSTLE RATIO

What values do I use?

Your side hustle income is all gross income generated from your side hustles. Sides hustles are typically part-time jobs where you take an active role in exchange for payment. Some side hustles include driving for a drive-sharing company, or offering services such as dog-walking or house sitting.

Your primary income is the gross income from your regular day job. Typically, this is your full-time job that provides the majority of your income.

What’s a good benchmark?

Your target side hustle ratio will depend on your financial goals. If you would like to increase your regular income by 50%, then you should shoot for a ratio of .5 or more. This would give you a healthy margin for additional savings and debt payoff.

How can this ratio be applied?

Let’s say you have a full-time job during the week, and you work one side hustle on the weekends. Your weekday job brings in $6,000 a month, and your side hustle makes you $2,000 a month.

Your side hustle income ratio would be $2,000 ÷ $6,000 =.33 =33%

How can this ratio help me?

This ratio is helpful to know what percentage of your primary income could be replaced with your side hustle income. It’s also helpful to know if your side hustles are generating a higher hourly income than your regular job.

For example, if your side hustle ratio is 50%, then your side hustles are bringing in gross income equal to 50% of your primary income. But, if you’re only working 20 hours a week with your side hustles, this means your side hustle hourly rate is greater than your primary  job. 

31. Life Insurance Coverage

What is it?

Life insurance isn’t for everyone, but it can be an important part of a financial plan if you’re married, have children, or just need to ensure an income for someone else after you die.

This metric will inform you if you have enough life insurance coverage for your personal circumstances.

How do I calculate it?

Here is how to calculate your target life insurance coverage:

PRIMARY ANNUAL INCOME x 10 =TARGET LIFE INSURANCE COVERAGE

What values do I use?

For this ratio, you would use your annual gross income from your primary job. This is the income you rely on regardless of any side hustle or passive income, and should be enough to support you and your family.

What’s a good benchmark?

The life insurance ratio is the benchmark. A target of 10x your annual gross primary income should be sufficient for most people’s needs.

However, you should consider the unique financial needs of your family in the event of your death. The coverage you decide on should at least cover all necessary expenses, like housing, food, clothing, transportation, etc. Some people also include enough coverage to pay for other costs, such as college or retirement expenses.

You should also factor in your spouse’s income. If your partner brings in 50% of your total annual income, you may decide to have a smaller policy. But, if you have 4 young kids and a stay-at-home spouse, you may want more.

This benchmark is just a starting point for your discussion with a life insurance agent.

How can this ratio be applied?

If you make $80,000 a year from your primary job, then you should target a life insurance policy for $800,000. 

How can this ratio help me?

Because of life’s uncertainty, it’s important to have a plan in place if the worst possible scenario happened. Setting up your loved ones for financial security even after you die is one of the most loving things you can do for them. This ratio will help you make the right decision for your family.

32. Inflation Hedge

What is it?

Inflation is defined as the decreased value of a currency, which lessens one’s buying power. A smart financial strategy is to invest in assets that generate a historical return greater than the rate of inflation. This calculation will inform you if you are staying ahead of inflation with your inflation hedge investments.

How do I calculate it?

Your inflation hedge ratio will reflect the relationship between your annual rate of return on an inflation hedge investment and the current rate of inflation. You can calculate this ratio with the following formula:

ANNUAL INVESTMENT RATE OF RETURN ÷ RATE OF INFLATION =INFLATION HEDGE RATIO 

What values do I use?

You would need to know the rate of return you realized over one year with your inflation hedge investment. Take this percentage and divide it by the current rate of inflation. 

What’s a good benchmark?

You will always want your inflation hedge ratio to be greater than 1, which means the return on your investments is staying ahead of inflation. A value less than 1 means your returns are not keeping up with inflation.

How can this ratio be applied?

If you realized an annual rate of return of 9% for your mutual fund, and the rate of inflation is 3%, then your ratio would equal 3. This would mean your rate of return is 3x that of inflation.

How can this ratio help me?

Seeing a positive return with your investments does not always mean they’re profitable. You should also consider how inflation affects the actual value of your portfolio. This ratio will let you know if your investing efforts are building or diminishing your buying power.

33. Tax Burden Ratio

What is it?

Your tax burden is the amount of tax you are responsible to pay. This includes income tax, sales tax, property tax, etc. You should know the percentage of your gross income that is going to taxes, so you can make smart decisions that will minimize your tax burden.

How do I calculate it?

Calculating your tax burden is as simple as dividing total taxes by your income:

TOTAL TAXES ÷ GROSS INCOME =TOTAL TAX BURDEN

What values do I use?

Taxes consist of any tax you are responsible to pay. This would include federal and state income tax, sales tax, property tax, gift tax, estate tax, payroll tax, and excise tax.

Your gross income is the annual income you make before taxes and deductions are taken out.

What’s a good benchmark?

The thing about taxes is that they are decided for you. However, you can make financial decisions that will lower your tax burden.

Charitable giving and retirement fund contributions are just a couple of ways you can decrease your tax rate. Talk to a professional who can give you smart tax advice for how you can minimize your tax burden, so you can keep more of your income.

How can this ratio be applied?

Taxes can be quite complicated, and changes are made on almost a yearly basis. Check the appropriate websites (Federal, state, and county) to find your current tax brackets and percentages.

How can this ratio help me?

Knowing your tax burden ratio can help guide your conversation with your tax specialist. There are strategies you can adopt that will help you lower your tax burden.

34. Financial Freedom Ratio 

What is it?

You can use the financial freedom ratio to measure how close you are to retiring and living solely on investment income.

How do I calculate it?

Here is how to calculate the financial freedom ratio:

(MONTHLY INVESTMENT INCOME + MONTHLY SAVINGS WITHDRAWAL) ÷ MONTHLY EXPENSES =FINANCIAL FREEDOM RATIO

What values do I use?

When you can draw enough investment income and cash from savings every month to cover all of your monthly expenses, then you no longer need to rely on a regular paycheck. 

Your investment income includes all dividends paid on stocks, capital gains from real estate investments, and interest earned on a savings or money market account.

Your savings withdrawals are taken from the principal balances in your savings, checking, money market, and retirement accounts. A monthly savings draw in addition to your monthly investment income should be enough to cover all of your monthly expenses in order to achieve financial freedom.

The total of your monthly expenses is flexible, and you could choose to live on a bare bones budget in order to achieve financial freedom earlier. However, if you want to travel or move to a big city, then your expenses will likely increase, and you’ll need more income.

What’s a good benchmark?

To achieve financial freedom, you’ll need a ratio of 1.

How can this ratio be applied?

If your investment income plus your savings withdrawal equals $5,000 a month, but your monthly expenses total $7,000, then you’ll need to keep saving.

However, reducing your expenses by $2,000 a month would help you get to a ratio of 1.

How can this ratio help me?

The financial freedom ratio is a useful measurement to help guide your investment and saving efforts. It’s a simple and flexible guideline that you can refer to as you’re building wealth and working toward retirement.

35. Financial Independence Ratio

What is it?

Your Financial Independence (FI) number tells you what net worth you’ll need to accumulate before you can retire and live solely off of your savings.

How do I calculate it?

Before I explain the details behind this metric, here is the formula:

ANNUAL SPENDING ÷ WITHDRAWAL RATE =FINANCIAL INDEPENDENCE RATIO

What values do I use?

First, you’ll need to figure out your projected annual spending when you’re retired . You can either base that amount on current costs and then adjust your FI number each year for inflation, or you can include inflation in your calculation.

Your annual spending will very likely be different than what it is now, based on all of the changes that retirement brings and your goals for it. But to get started, you can track your spending now to get an idea of what they may be in the future.

Once you have a number for your annual spending, you’ll need to decide on a withdrawal rate. This rate is the percentage you’ll consistently withdraw from your retirement savings year after year, also adjusting for inflation.

What’s a good benchmark?

The standard guideline is 4% (based on an exhaustive study in the mid-90s).

Of course, this is just a guideline, and you can use a withdrawal rate higher or lower than that. But, it’s a good place to start.

When you have estimated your projected annual retirement spending, and you’ve decided on a withdrawal rate, you can then determine your FI number by using the equation above.

How can this ratio be applied?

So, for example, if you project that your annual retirement spending will be $65,000, and you’ve decided your withdrawal rate will be 4%, then your FI number would be:

$65,000 ÷ .04 =$1,625,000

This number represents the net worth needed in order to be financially independent and completely live off of savings.

Now, this calculation assumes a couple of important details. First, that your retirement will last 30 years .

Of course, if you are still alive after this long then you could have a real problem if you’ve depleted your savings. On the other hand, if you end up staying in the workforce longer than expected, your withdrawal rate could possibly be increased.

The second assumption is that your portfolio consists of stocks (50-75%) and bonds (25-50%) . However, the allocation is up to you and will depend on market conditions as you continue to build your fund. You’ll need to determine how much investment risk you’re comfortable with.

And just as an additional note, some professionals will simply suggest you multiply your projected annual retirement spending by 25 to get your FI number (see #2 on this list).

This is because many will recommend using the 4% rule , and if you divide a number by 4% it’s the same as multiplying that same number by 25:

$65,000 x 25 =$1,625,000

How can this ratio help me?

There are some unknowns with your FI number such as future inflation rate and market conditions.

And that’s why it’s important that you revisit it once a year . The variables will probably change often, so look over your numbers annually as you get closer to retirement, then make adjustments as necessary.

How to improve your personal finance ratios

Once you’ve calculated your own financial ratios, you may feel a little disheartened. Seeing those unforgiving numbers can certainly be a wake up call, reminding you it’s time to get serious about your financial future!

Don’t be discouraged – you need to know the truth about where you’re at so you can figure out where you’re going.

If you’ve come face to face with the fact that you haven’t saved enough, or you’re in too much debt, find hope in knowing there are actions steps you can take to improve your financial metrics.

First, do what you can to drastically cut expenses .

• Start with any discretionary spending, like buying clothes, eating out, going to the movies, etc. Make a commitment to reduce these unnecessary costs, at least temporarily.
• Refinance any debt to get the lowest rates, so you can start paying it off faster. Begin with your mortgage, where you’ll likely experience the largest savings.
• Review your monthly bills and determine what can be either reduced or eliminated. Cut cable, find a cheaper phone plan, reduce your utilities, etc.

If you’re not on a budget, start one so you can be tracking your spending.

Reducing your monthly expenses can help improve your personal finance ratios, but if you want to reach your goals faster, you’ll probably need to increase your income . Here are a few ideas:

• Ask for a raise, or apply for a promotion at your present job.
• Invest in additional education or training so you can qualify for a higher paying position.
• Get a side job that offers a few extra hours in the evenings or weekends.
• Start your own side hustle by providing a service you already enjoy doing.

There are many ways you can generate more income, just be open to the opportunities that are available.

To give you some ideas, you can read my post about 50+ ways to make extra money .

Don’t discount small changes. Many little steps can add up to a big difference!

In summary:financial ratios can help with your goals

Personal finance ratios are a great way to assess your financial life and do your own financial analysis. Understanding what they represent and how to use them will help you know when you need to take corrective action.

They are also a great starting point for creating financial goals. You can take these formulas and tailor them to your specific financial situation.

These numbers are not static. You will need to revisit them from time to time to make updates that fit your life as you get closer to retirement.

Just remember, your numbers will be different than anyone else’s. You must decide your own benchmarks and not get caught up in what neighbor Joe is doing down the street.

There are standard guidelines that will help you make realistic goals but in the end, you’re the only one that can determine what’s right for your retirement.

Tracking your personal finance ratios is a powerful strategy to help you achieve your financial goals.

Don’t leave your retirement to chance – make a commitment to assessing your own financial health periodically so you can be successful at reaching your goals.

Other posts you may enjoy:

• Financial Peace Series:The Critical Role of Insurance
• The 401(k) and the IRA:Which One Is Better?
• The Late Starter’s Essential Roadmap For Retirement
• Ultimate Estate Planning Checklist &Guide
• Get Your RISE Score:5 Steps To Determine Retirement Readiness
• Should You Use The 4% Rule In Retirement?
• 7 Steps To Catch Up On Retirement Savings
• 12 Effective Tips For Financial Planning In Your 50s
• 50 Good Money Habits To Help You Save More
• What Happens If You Don’t Have A Living Trust?

35 Personal Finance Ratios To Help You Crush Your Goals