While browsing money blogs yesterday, I came upon an old article from my pal Joe at Retire by 40. The post is from 2015, but it contains a cool concept that I think might be useful for readers of Get Rich Slowly.
Lifetime Wealth Ratio = Your Net Worth / Your Lifetime Income
In pain English, your lifetime wealth ratio (or LWR) compares how much you have today with how much you've earned during your time in the workforce. It's a way to look at the wealth you've created and gauge how well you've done at keeping that wealth.
Let's take a closer look at the lifetime wealth ratio and how it's calculated. [Read more…]