Financial well being profile: Check your Ratios

By Ajit Panicker:  Research Based	Financial well being profile
Area	Ratio	Recommendation
Liquidity	liquid assets/ monthly expenses	>= 250 %( >=2.5 times of monthly expenses)
Saving	Savings/ Gross income	>=10%
Asset Allocation	Liquid assets / Net worth	>=15%
	net investments assets/ Net worth	>=50%
	Foreign investments/ Total investments	>=10%
Inflation Protection	% change in networth/ rate of inflation	>=2
	%change in investment assets / rate of inflation	>=2
Housing expenses	renter's expenses/ gross income	<=30%
	homeowner's expenses/ gross income	<=35%
Insolvency/ Credit	non mortgage debt payments/ after tax income	< 15% reasonable, >=20% danger point
	total debt payments/ after tax income	<35% reasonable, >=45% danger point