Section 6.3: Measuring Financial Health
Section 6.3 Focus
In this section, you will learn about wealth in terms of net worth, assets and liabilities, and rules of thumb for safe borrowing limits. You will learn to calculate the net worth and debt-to-income ratio and safe debt load.
Read
- Where Your Net Worth Needs to Be At Every Age Links to an external site.
- Net Worth Defined and Calculated: What Is My Net Worth? Links to an external site. (scroll down past the calculator to read important net worth definitions)
- Debt-To-Income Ratio – DTI Links to an external site. (Make sure to watch the included video)
- Should You Follow the 20/10 Rule for Debt Management? Links to an external site.
- Section 6.3 Net Worth, DTI, and 20-10 Rule Download Section 6.3 Net Worth, DTI, and 20-10 Rule
Watch
Watch the following two videos.