Over the holiday period, the most common topic among the friends is $. Whether it's Earning or Saving or Spending. One interesting topic was to measure "how good" are they with $.
The most common measure appears to be Networth (guess seedly, moneysense and other local bloggers are doing a good job). It is simple, yet a strong measure to show how good are you with net savings or investment :)
But my view is the one need to measure the Net Savings Ratio after the net worth. Calculating net worth simply doesn't mean you are doing great. For example, a 30 years old person making 50,000 per year may end up with 100K net worth while a 40 years old person making 200,000 may end up with 400K net worth. In this case, I want to be the first person rather than the latter.
So I proposed a small table which tabulates the net-worth - earnings - and ratio. Now add it over the years and you can see the cumulative savings ratio over a period
e.g.
This ratio can show you how good you are with Savings, Investments & overall financial situation :)
FYI, I am lookig at > 70% as "good"
The most common measure appears to be Networth (guess seedly, moneysense and other local bloggers are doing a good job). It is simple, yet a strong measure to show how good are you with net savings or investment :)
But my view is the one need to measure the Net Savings Ratio after the net worth. Calculating net worth simply doesn't mean you are doing great. For example, a 30 years old person making 50,000 per year may end up with 100K net worth while a 40 years old person making 200,000 may end up with 400K net worth. In this case, I want to be the first person rather than the latter.
So I proposed a small table which tabulates the net-worth - earnings - and ratio. Now add it over the years and you can see the cumulative savings ratio over a period
e.g.
| Networth | Total Income | Net Saving Ratio |
| $10,000.00 | $20,000.00 | 50.00% |
| $50,000.00 | $40,000.00 | 125.00% |
| $150,000.00 | $80,000.00 | 187.50% |
| $140,000.00 | $145,000.00 | 96.55% |
| $200,000.00 | $265,000.00 | 75.47% |
| $250,000.00 | $405,000.00 | 61.73% |
| $300,000.00 | $545,000.00 | 55.05% |
| $320,000.00 | $755,000.00 | 42.38% |
| $485,000.00 | $945,000.00 | 51.32% |
| $653,209.15 | $1,157,000.00 | 56.46% |
This ratio can show you how good you are with Savings, Investments & overall financial situation :)
FYI, I am lookig at > 70% as "good"
