#123: Reading the Financial Tea Leaves - Ratio Analysis

Season #1

Josh is joined by special guest Professor Trelawney–or rather, Amelie–to discuss a seemingly-boring topic that has led to surprisingly wonderful client responses…financial ratios! Debt-to-income,

Top things to think about:

  • Without ratios…numbers are relatively meaningless.
  • Early on, we should focus on helping clients set up for long-term success–retirement savings to get company match, pay down debt that will hard ability to buy a house (credit cards and high interest car loans), and put money aside for short- to mid-term loans.
  • Liquidity ratio is a great one–it’s also known as “how many months does your emergency fund last?”
  • Ratios matter a lot…within a client’s life and context.

Want help building or growing a successful financial coaching business? Find resources below based on where you’re at in your journey: