Hello, since most people here are pretty thrify, i thought it would be pretty interesting if everyone posted their DTI ratios. For those of you who dont know, its just total monthly debt service/gross monthly income.

Under 30% = excelent
30-36% = Good
36 - 40% = borderline
40% ++ =ouch!

Mine is 47% so obviously i am a letter over-leveraged!

I feel uncomfortable answering questions about my back end.

Zan86 said:Hello, since most people here are pretty thrify, i thought it would be pretty interesting if everyone posted their DTI ratios. For those of you who dont know, its just total monthly debt service/gross monthly income.

What about the typical FWFer who is making money off banks, is the DTI negative then?

2.24% of net. If you include rent (as a homeowner would count their mortgage), it jumps to 22.5% of net.

1%

Pretty useless information.

Cash flow is key.

How about your income to expenses ratio instead?

Or how about investment income to expenses ratio?

I have no debt service, so 0%. But I rent.

Another vote for 0%.

I would include credit cards if you pay a fixed amount per month or have excess debt. Obviously capacity is KEY!! But the reason we shouldnt include other expenses cause those can easily change, as in downgrade internet/cable, buy cheaper food, dont go out as much etc.... and they are not DEBT! Debt is the keyword in the ratio.

Zan86 said:I would include credit cards if you pay a fixed amount per month or have excess debt. Obviously capacity is KEY!! But the reason we shouldnt include other expenses cause those can easily change, as in downgrade internet/cable, buy cheaper food, dont go out as much etc.... and they are not DEBT! Debt is the keyword in the ratio.

So do 2 calculations:

One with the bare minimum, and one which is more inline with realistic spending.
I know I spend about $130 on gas per month, but it was $120 last month. I need to spend this amount.
Cable/internet, sure I could spend $40, but I spend $90 right now.

Knowing your cash flow is pretty darned important.

I know right now that I am spending 40.44% of my income on expenses - some less required than others.
Means 59.56% of my income can go to investments. Which means that my expense % will probably go down next month.

I do the dividend/bond style of investing, so I even care about my investment income too.
For the first time in my life, I know I will not starve. In fact I probably could even have a cell phone and a couple days at a cheap hotel if I was homeless.

Little rant: Why are people NOT scared of being homeless out on the street? I am VERY afraid of this.