Templates-Personal Finance

Today we went over the 3 templates:

1)Net Worth Statement

NW=Own-Owe or NW=Total Assets-Total Liabilities

2)Debt Equity Ratio

D.E.Ratio=(Total liabilities-Mortgage on your home) x 100

Net Worth

*Most desirable ratio is 0%*

3)Gross Debt Service Ratio

GDSR=(Monthly Rent/Mortgage+Monthly Taxes+Monthly Heat) x 100

Gross Household Monthly Salary

*Usually associated with housing costs and not to exceed 32%*