Do You Make the Grade? Your Financial Report Card
Thursday, August 24th, 2006
We have wrtitten a new article series titled Your Financial Report Card. It’s highly unlikely that if two different financial planners looked at your financial situation that they would see things the same.
That’s because so many things in personal finance are open to interpretation. But there are a few things you can do to grade yourself and your progress. In Part 1, we look at both the amount of and quality of wealth you have. These help to determine where you stand as far as your assets and how you have invested your money.
In Part 2 Debt, Reserves, and Wealth, we explore, you guessed it, your debt, your reserves you have on hand, and your Wealth Accummulation Rate. In Debt we help to show how you are handling your family debt by calculating the Current Ratio. We also explore how you are saving money in the short term for emergencies. And the Wealth Accumulation Rate (WAR) examines the rate at which you are accummulating your wealth.
In Part 3, we look at the Wealth Return Rate and the Wealth Yardstick. These two tools will help you to determine how your ealth is working for you and if you are on track compared to other families with your age and incomes level.
So take the tine to go over the financial report card today.
Leave a Reply
You must be logged in to post a comment.