Many banks will go through a similar process to evaluate your financial health, where they compare your income and assets with your debts and liabilities to come up with a percentage called your debt to equity ratio. It is important to be honest and thorough, as you will need to use this information to help build your financial plan.
Find a method of tracking your personal finances, either with a simple book and paper ledger or with automatic software packages like Quicken or Microsoft Money. This will not only help you track and budget how you spend your money, but the software can integrate with many online banking services which allow you to keep a virtually real-time picture of your spending. The important thing to do is to be consistent and make sure all of your spending and budgeting is tracked for a complete picture.
Once you have an accurate picture of your personal finances, you need to identify your short and long term goals. When do you want to retire? Are there specific purchases you are planning? Are there any time frames to consider? Are you planning for your children's education or just interested in being debt-free?
Once you understand what's important to you, you will understand what needs to be done to get there: how much you'll need to earn, how much you'll need to save, and over what period of time. Basically, know where you are, and where you want to be.
| Posted: at | |
TRENDING GISTS 
Lady Calls Out JAMB After Mysterious Overnight Change in Brother’s UTME Result
Ex-AUN Provost, Professor Yusuf Attahir Baba Loses Three Children in Devastating Car Crash
Football Star, Lionel Messi-Marriage Rumours Stir Online Frenzy As Divorce Speculations Grow
El-Rufai & Peter Obi Meet at Cambridge Conference, Sparking Political Speculation Ahead Of 2027 Elections
"How My Mother’s Lover Rap3d Me" — 12 Year Old Victim Narrates Ordeal