A Case Study of Examining Personal Financial Health with Financial Ratio

Abstract

This article uses a case study to explain how to examine the financial health of a person by using financial ratios, which are well known personal finance. Start checking of data collection, both qualitative and quantitative, including their financial goals in the future. Then, preparing personal financial statements – personal balance sheet and personal statement of cash flows, after that the data in the personal financial statements are calculated to personal financial ratios to determine the financial health of the three sides - liquidity, liabilities and the savings and investment. A case study has shown every step of monitoring the financial health and a detailed profile clearly. Include providing feedback to maintain and improve the financial health of the individual to financial freedom conventionally. The process is the beginning of a personal financial plan that can make an individual life has meaning and dignity by relying on his or her own finance potential throughout the life, without a burden to anyone.