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3 Money Ratios Every Clever Girl Should Know
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[QUOTE="Yusra3, post: 322120, member: 31907"] If you're a clever girl, you've probably heard the term "money ratios" before. But what does it mean? And how can you use them to your advantage? Money ratios are just that: ratios between different aspects of your finances. They're used to help you get a better understanding of where your money is going and where it's coming from, so that you can make smart decisions about how to spend your money and save more of it for future goals. Here are 3 money ratios every clever girl should know: [SIZE=6][B]1. The Cost of Living Index:[/B] [/SIZE]This is the most widely used measure of inflation, and it's a good place to start when comparing expenses in different countries. The CPI measures changes in the price level over time. It does not take into account changes in quality or quantity of goods or services being offered by an economy. [SIZE=6][B]2. The Consumer Price Index (CPI): [/B][/SIZE]This measures price changes over time, but it also takes into account quality and quantity changes in goods and services offered by an economy. It's often used as an indicator for inflationary trends, but it can also be used as a benchmark for comparing prices between different countries or cities within one country over time. [B][SIZE=6]3. The Producer Price Index (PPI): [/SIZE][/B]This measures price changes over time, but it also takes into account quality and quantity changes in goods and services offered by an economy; it's often used as an indicator for inflationary trends, but it can also be used as a benchmark for comparing prices between different countries or cities within one country over time. [/QUOTE]
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