The Frugal Farm Living life deliberately

Am I the only one who asks that question of myself?

Do you ever look around at all the new SUVs on the road, and the neighborhoods packed chock full of McMansions and think everybody is rich? Well, I was reading the results of a federal reserve study that found 46% of Americans spend more than they make!

You really can NOT tell how you (or anyone else) is doing based on outward appearances. I found an article on Personal Finance Ratios that I really liked. Just like you may use a PE ratio or ROI to evaluate a company, these ratios give a benchmark of how one is doing financially. While not perfect - and somewhat daunting especially on the debt column when you think about an average (median) house in the US costing over 220k, and average household income under 40k... well, you do the math :-).

At any rate, if you are working toward the goal of Financial Freedom - and Freedom is really the goal, then I think the numbers give a benchmark with some merit.

Here is the chart with the key numbers from the link above.