High take home salaries gives a high, but not knowing where exactly it goes can make you even feel depressed at times. Knowing where you stand financially is a challenge, especially at a time when knowledge of personal finance is pretty low. The difference between need and affordability is narrow, especially if you are used to borrowing money to fund your desires. Naturally, often the first real financial lesson one leans is when one realises the credit card dues that they have stacked up.
When it comes to your finances – the liquidity to meet emergencies and your ability to serve debts is important. As you go up the ladder, knowing your net worth is equally important. Here are some of the ratios that will help you get a fix on your financial status. Remember, the figures indicated in the table are to give you a fair idea of your financial standing.
(A marketing initiative by Open Avenues)