4 Numbers to Track to Build Real Wealth скачать в хорошем качестве

4 Numbers to Track to Build Real Wealth

There are four essential numbers you need to track to build real wealth and achieve financial independence. Traditional methods like daily investment tracking and meticulous expense logging don’t work well and are tedious. Here’s what to focus on instead: Savings rate: Calculated by your total annual savings divided by your total annual gross income. The 10-20% range is considered healthy but can vary depending on your situation. Remember, if you’re not saving intentionally, then it doesn’t count. Burn rate: This should comprise 30-50% of your gross income. Burn rate is calculated by taking your total personal spending and dividing it by your total gross income. Whatever you think your burn rate is, add about 10% on top of that–we tend to underestimate how much we actually spend. Debt rate: As it sounds, this is your debt-to-income ratio. To calculate this, you divide your total annual debt payments by your total annual income. A typical debt rate is 15-30% of your gross income. Total term: Think of this number as your financial independence number. It’s calculated by taking your net worth and dividing it by your total annual spending. Although this number will be smaller the younger you are, you should have a score of 25-30 by retirement. These numbers will simplify your finances and help inform better financial decision-making. Peter explains how these metrics can help you better understand your financial standing and work towards your retirement goals more effectively. ================ We help high-income earners capitalize on their accomplishments with pragmatic, data-driven financial advice. Learn more about Bull Oak → bulloak.com 🔔 Subscribe to be notified of future videos:    / @financialplanner   Timestamps: 0:00 - Savings rate 3:06 - Burn rate 5:25 - Debt rate 7:27 - Total term (net worth/annual spend)