Do You Have Too Much Debt? Calculate Your Debt To Income Ratio To Find Out

Businesses regularly calculate key ratios that indicate their financial health, and so should you. Two of the most basic personal finance calculations are (1) your Net Worth, which is a snapshot of your current financial situation and tells you what you're worth, and (2) your Debt to Income Ratio, which is your total debt payments compared to how much money you earn and tells you if you're carrying too much debt. Here's how to calculate these two key indicators of your financial status.