A Financial Life Ratio You Should Know

February 19, 2015
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This past weekend I was watching the NBA All-Star Game and the statistics they were showing of the best players had me thinking. I grew up playing competitive sports and am a huge sports fan. The common thread in all the sports that I played is that I always tracked my “stats”. Whether it was my batting average, free throw percentage, or first serve percentage, it was imperative that I knew my stats. Knowing my stats was the only way my coaches and I could objectively set up the necessary practice and training sessions to improve my game.

When it comes to your financial life, there are numerous statistics and ratios that you can be tracking to know just how well your financial game is being played. One important statistic that you should know is your “Capital to Income Ratio“.

Check out this really quick, financially intelligent video where we discuss the importance of your “Capital to Income Ratio” and how you can calculate it for yourself.

Once you have calculated your ratio, check out the Capital to Income Ratio chart to see how you measure up.

Here’s to you upping your financial game!

2 thoughts on “A Financial Life Ratio You Should Know

  1. Love that – thanks Matt – finally a simple answer! 🙂

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