13-12-2010, 11:05 AM
All of us have to use some leverage because it is not possible to save enough to buy our home in cash - unless we are big earner.
Like a company growing its business, I believe appropriate use of debt can help a person grow his net worth. The question is what is a good debt-equity ratio, ROE, etc.
I tried to work out my household balance sheet and found that my debt to equity ratio is about 27%.
Like a company growing its business, I believe appropriate use of debt can help a person grow his net worth. The question is what is a good debt-equity ratio, ROE, etc.
I tried to work out my household balance sheet and found that my debt to equity ratio is about 27%.