S ummer is here, so we should expect that the temperature outside is rising. As you are relaxing inside with the air conditioner on, it may be a good time to take your financial temperature as well.
Most people have a vague feeling about how they are doing financially.
But if you're not satisfied with just a hunch or a feeling, two simple ratios can show you whether you are headed for wealth or woes. First, figure your solvency ratio . This ratio measures how many of your debts could be paid off, if you had to sell all of your assets. To figure your solvency ratio, start with your net worth statement. Then divide your total debt amount by your total asset amount.