Money Ratios Your Should Know

Money ratios can help you quickly gauge the health of your finances and pinpoint what changes you need to make to improve them.

Here 5 of the important ones you should know.

1. 50% Budgeting Ratio

The budgeting rule of thumb that limits your must have expenses to less than 50% of your income.

2. Credit Utilization Rate

The ratio of the sum your revolving credit line balances to the to the overall credit limit.

3. Student Loan Debt-To-Salary-Ratio

The upper limit of student loan debt to take on in order to realize the return on investment in earning a college degree.

4. Loan-To-Value Ratio

How much of the property your purchased with a loan, you actually own.

5. Debt-To-Salary Ratio

A ratio of all your monthly debt obligation compared to your monthly income.


Related Article: How To Start Saving When You Don't Know Where To Start

 
5 Money Ratios You Should KnowTo learn more about why they are important and how to apply them to your finances, head over to read the entire post, at CleverGirlsKnow.com.

~ Melisa Boutin


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