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Financial Checkup Essay Example

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Financial Checkup

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The ratio is the division of liquid assets for the net worth statement by the monthly expenses from the income and expenses statement. It is recommendable that the result got after calculating the ratios should be 3.0 and above. However, in this case, the ratio is below 3.0 the ratio is at 0.663, which is not quite recommendable at all. This is, therefore, an indication that my firm as far as income and expenditure are concerned. To increase the basic liquidity ratio, I must, therefore, reduce my expenses and maintain the saved income at a maximum value.Debt-to-asset ratio is the calculation got by the ratio of total liabilities from net worth statements and total assets from net worth statements. The rate usually considered as solvency, which is if an individual owes than they can own, then they are considerable insolvent. In this case, I cannot sell all my assets to pay the debts that I have. With the recommendation, the ratio below 1.0 is better which indicates that the calculated ratio of 0.072 is considerable. The ratio being below 1.0 is an indicator that I have minimal liabilities in comparison to the total value of the total value of assets from the net worth statements.In a case of debt payment-to-income ratio, a division of annual debt payments from income and expenses statement by the gross income from the income and expense statement calculates the rate. The ratio indicates the ability to make the current debt payments. When calculating the ratio, the ratio below 0.36 is considerably adequate. The rate from 0.36 to 0.41 is considerable marginal while a ratio above 0.41 is considerably uncertain. In this case then, the calculated ratio of 0.666 is an unsafe rate.During the year 2013, there was high capital spent on extra expenditure that is on the New Year’s contributions, insurance covers, Christmas contributions, and even fee payments. With the irregular spending that year, I used extra capital that saved me in settle the high number of unexpected expenditure. The level of investment I have had increased the expenditure rate, which is an indicator that my retirement goal is great. There is an indication of the elevated retirement goal of $288,357. Use of resolving saving check sheet showed me averagely how much I was required to save within that year if in case I was not having the irregular spending within the selected

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