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Srihari Kulkarni
Rubbish
by Srihari Kulkarni on Feb 24, 2010 10:40 PM  | Hide replies

This is rubbish. How can a person at 30 earning 5 laksh gross ever have a net worth of 15 L.
Such a person would typically have started earning at 22 with a salary of around 1.5L. Assuming 20% (which is very high) increase every year, the total money earned would be only about 24.74L.
Mind you, 24.74 is the gross - take away all deductions, you are left with about 20L. Take out expenses for 7 years @ 10,000 per month (excluding any loans). Take out a couple of laksh for any additional purchases - you are left with less than 10L.

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Goodda Kapoora
Re: Rubbish
by Goodda Kapoora on Mar 01, 2010 04:20 AM


You are right, Sri.

Remember those trick questions in the exams, where inadequate information was provided to test the student's true knowledge?

Rediff does the same thing with all its articles.

Not because they want to test the reader's knowledge but because it employs ignorant writers who need to go back to school to re-learn the basics!!

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Prabhas Ghosh
Hypothetical ratio calculating formulaes stated here
by Prabhas Ghosh on Feb 24, 2010 06:37 PM

the net worth thumb rule assumes that you earn 5 lakhs ever since you were born, which is hilarious (30 * 5 in that example).
Second, in todays scenario,where an individual has a liability of housing, car loans and other liabilities on his head, debt to net ratio of over 1 is absolutely impossible. Even the biggest company of the world don keep a Debt to net ratio of 1.


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arun punjabi
Ratios
by arun punjabi on Feb 22, 2010 11:10 AM  | Hide replies

If a person is to follow what is written in this article he will need to beg when he retires.
These ratios are fine for a company, not an individual
e.g. a debt to assets ratio should never exceed 0.3. If it goes higher it could lead to a situation where there is more to pay off than one can afford. A debt trap (something like what the govt. of India is now facing)

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K Prasanna
Re: Ratios
by K Prasanna on Feb 24, 2010 11:20 AM
Very Scary !! Look at the "Total Debt to Net worth Ratio" it says 5% But 50,86,900/10,15,100 = 5 or 500% not 5%.

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Brijesh Singh
Re: Ratios
by Brijesh Singh on Feb 22, 2010 11:28 AM
very right indian govt have disease of hypertension

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arun punjabi
Ratios
by arun punjabi on Feb 22, 2010 11:10 AM

If a person is to follow what is written in this article he will need to beg when he retires.
These ratios are fine for a company, not an individual
e.g. a debt to assets ratio should never exceed 0.3. If it goes higher it could lead to a situation where there is more to pay off than one can afford. A debt trap (something like what the govt. of India is now facing)

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Samish Dalal
Already present
by Samish Dalal on Feb 22, 2010 10:41 AM  | Hide replies

I m a professor in personal finance. The list is pretty much more, more comprehensive and practical. I have developed many on my own and discussed with students and have taught them.

I guess a greater perspective can be opened up.



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sangeetha murali
Re: Already present
by sangeetha murali on Feb 22, 2010 04:15 PM
Hi Samish Dalal, Why do not you share your developments for Rediff viewers.

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