Your Financial Compass: Instruments and Values

Critical Financial Instruments | Values: Your Financial True North

Critical Financial Instruments Every Pilot Should Know

For those who appreciate precision measurements, here are the key indicators that should be on your financial dashboard:

• Net Worth Ratio: Total assets minus total liabilities / total assets

• Targeted Net Worth Ratio: Age × (pretax income ÷ 10)

• Solvency Ratio: Net worth / total assets

• Investment Assets-to-Total Assets Ratio: Investments / total assets

• Savings Ratio: Savings / gross income

• Liquidity Ratio: Cash / monthly expenses

• Emergency Fund: Monthly expenses × 6

Just like your cockpit instruments, these indicators help you monitor stability, fuel levels, and risk — ensuring you don’t veer off course in turbulent conditions.

Values: Your Financial True North

Numbers matter, but purpose matters more. Without connecting your finances to what matters most to you, you're flying without a destination. How do you define true wealth? Financial security? Family security? Freedom to explore? Leaving a legacy?

Your values are the needle on your financial compass, ensuring your financial decisions align with what brings genuine fulfillment.

At Planning for Pilots, we believe wealth management without values alignment is just money movement – technical but less fulfilling.