Comments on: Your Total Measure of Wealth: Income, Personal Savings Rate, and Rate of Return http://www.punny.org/money/your-total-measure-of-wealth-income-personal-savings-rate-and-rate-of-return/ Adding a punchline to your bottom line Fri, 21 Nov 2008 10:42:40 +0000 http://wordpress.org/?v=2.6.2 By: Sebastian http://www.punny.org/money/your-total-measure-of-wealth-income-personal-savings-rate-and-rate-of-return/#comment-211855 Sebastian Wed, 24 Sep 2008 22:21:34 +0000 http://www.punny.org/money/your-total-measure-of-wealth-income-personal-savings-rate-and-rate-of-return/#comment-211855 I must say someting. The concept of passive income confuses many people. Many people start a second business to build a passive income - totally ignoring the term 'passive.' A passive income should be a stream of income that requires little work. That is why most revenue venues do not qualify. Remember that. I must say someting. The concept of passive income confuses many people. Many people start a second business to build a passive income - totally ignoring the term ‘passive.’ A passive income should be a stream of income that requires little work. That is why most revenue venues do not qualify.
Remember that.

]]> By: The Simple Dollar » The Simple Dollar Morning Roundup: Easter Weekend Edition http://www.punny.org/money/your-total-measure-of-wealth-income-personal-savings-rate-and-rate-of-return/#comment-54188 The Simple Dollar » The Simple Dollar Morning Roundup: Easter Weekend Edition Fri, 06 Apr 2007 13:31:10 +0000 http://www.punny.org/money/your-total-measure-of-wealth-income-personal-savings-rate-and-rate-of-return/#comment-54188 [...] Your Total Measure of Wealth: Income, Personal Savings Rate, and Rate of Return If you really want to get a grip on how you’re doing financially and your net worth calculation isn’t enough, this article is a great guide to getting a better picture of where you’re at. (@ punny money) [...] [...] Your Total Measure of Wealth: Income, Personal Savings Rate, and Rate of Return If you really want to get a grip on how you’re doing financially and your net worth calculation isn’t enough, this article is a great guide to getting a better picture of where you’re at. (@ punny money) [...]

]]> By: Teri http://www.punny.org/money/your-total-measure-of-wealth-income-personal-savings-rate-and-rate-of-return/#comment-52596 Teri Sat, 24 Mar 2007 17:23:14 +0000 http://www.punny.org/money/your-total-measure-of-wealth-income-personal-savings-rate-and-rate-of-return/#comment-52596 Yes, just wanted to say, eagerly awaiting your next post on the subject. I am always looking at ways to measure my net worth (progress) and looking at it in different ways, and I came across this site. Being able to qauntify all of these variables in a sense, into one number, sounds very interesting. Having a ton of home equity and a great financial start, but then taking a few years off to pursue other life goals, is hard for me to quantify where we should be. At face value our net worth is insanely high for age (just turned 30) but with a lot of equity and the fact we spent a lot of time with no income in our late 20s in order to spend time with kids, it leaves off the fact that we haven't saved much in 5 years, that our retirement suffers because we did not save in some prime years (25-29). Measuring net worth alone always leaves me feeling pretty unsatisfied. I am less interested in where we are than where we need to be, as well. Plus living in a high COL area the people who got in before the boom don't need quite as much to live - have a relative who has a paid off house and drives a corvette yet know many people who make 4 times as much money (since he is young with no college degree) in the same area who can't afford the down payment on the expensive real estate today. In this area in particular the line between the haves and have nots is quite precarious. Measuring who is really wealthier is quite subjective. So I loved your post on who was really wealthier - how appearances can be deceiving. I just see that all the time. Plus I put a huge value on quality of life. So I like to see that was part of your wealth measure. I could go make 50% more at some miserable job, but just not interested. Well I look forward to hearing more. Yes, just wanted to say, eagerly awaiting your next post on the subject. I am always looking at ways to measure my net worth (progress) and looking at it in different ways, and I came across this site. Being able to qauntify all of these variables in a sense, into one number, sounds very interesting.

Having a ton of home equity and a great financial start, but then taking a few years off to pursue other life goals, is hard for me to quantify where we should be. At face value our net worth is insanely high for age (just turned 30) but with a lot of equity and the fact we spent a lot of time with no income in our late 20s in order to spend time with kids, it leaves off the fact that we haven’t saved much in 5 years, that our retirement suffers because we did not save in some prime years (25-29). Measuring net worth alone always leaves me feeling pretty unsatisfied. I am less interested in where we are than where we need to be, as well. Plus living in a high COL area the people who got in before the boom don’t need quite as much to live - have a relative who has a paid off house and drives a corvette yet know many people who make 4 times as much money (since he is young with no college degree) in the same area who can’t afford the down payment on the expensive real estate today. In this area in particular the line between the haves and have nots is quite precarious. Measuring who is really wealthier is quite subjective. So I loved your post on who was really wealthier - how appearances can be deceiving. I just see that all the time.

Plus I put a huge value on quality of life. So I like to see that was part of your wealth measure. I could go make 50% more at some miserable job, but just not interested.

Well I look forward to hearing more.

]]> By: Nick http://www.punny.org/money/your-total-measure-of-wealth-income-personal-savings-rate-and-rate-of-return/#comment-52441 Nick Thu, 22 Mar 2007 17:34:11 +0000 http://www.punny.org/money/your-total-measure-of-wealth-income-personal-savings-rate-and-rate-of-return/#comment-52441 TMac, your wish is my command! Heh, actually I already have plans to generate a single value (maybe a number, maybe a letter, maybe a smiley face) once all of this is done so that people can have a single, all-encompassing Total Measure of Wealth metric. And I'm also working on a nice setup so that people won't need to do all of these calculations themselves. It still might take a bit to fill in some data, but I'll find a way to automate all of these calculations. It should be pretty neat when it's done. Thanks for letting me know I'm doing a good job; I really appreciate it! TMac, your wish is my command! Heh, actually I already have plans to generate a single value (maybe a number, maybe a letter, maybe a smiley face) once all of this is done so that people can have a single, all-encompassing Total Measure of Wealth metric.

And I’m also working on a nice setup so that people won’t need to do all of these calculations themselves. It still might take a bit to fill in some data, but I’ll find a way to automate all of these calculations. It should be pretty neat when it’s done.

Thanks for letting me know I’m doing a good job; I really appreciate it!

]]> By: TMac http://www.punny.org/money/your-total-measure-of-wealth-income-personal-savings-rate-and-rate-of-return/#comment-52436 TMac Thu, 22 Mar 2007 17:00:08 +0000 http://www.punny.org/money/your-total-measure-of-wealth-income-personal-savings-rate-and-rate-of-return/#comment-52436 Nick, awesome analysis. I have been against net worth as the sole indicator of personal wealth for a long time. I see one problem with these calculations - people like having one number to look at as an overall measure of wealth. Like all the complicated calculations that go into our credit score, there has to a way to weight all the factors that you proposed into coming out with one solid number. The weights could change over time as someone gets more stable in their finances etc. What do you think? Just my two cents. Great job on this series so far. Question is Nick, awesome analysis. I have been against net worth as the sole indicator of personal wealth for a long time.

I see one problem with these calculations - people like having one number to look at as an overall measure of wealth. Like all the complicated calculations that go into our credit score, there has to a way to weight all the factors that you proposed into coming out with one solid number. The weights could change over time as someone gets more stable in their finances etc.

What do you think? Just my two cents. Great job on this series so far.

Question is

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