Understanding financial ratios to achieve personal finance success

FINANCIAL planning involves more than just setting goals and saving money. To truly understand the health of your finances, you need a comprehensive approach that incorporates key financial ratios. Accountants and stock analysts use these ratios to assess the strength and stability of companies.

By applying similar scrutiny to our personal finances, we can gain a clearer understanding of our financial position and make informed decisions to improve it. This guide introduces five essential financial ratios and how they can guide you toward better financial well-being.