Personal finance ratios

B- schools and finance books talk about ratios that are needed to judge and manage the finances of a company. But we seldom bother about how to manage our personal finaces using such tools.
Personal finance ratios cannot be a panacea to all our financial woes . But they can definitely be a starting point or a guiding point in managing our finances.
Found the following article in Money today very inetersting which talks about the EMI to salary ratio, Savings to Earnings ratio, Liquid money availability, etc. In these age where we dont even think twice before signing up for an EMI or swiping our credit card , having such ratios in mind can definitely bring some method to the madness.

1 comment:

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Rich Jenkinson


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