Some numbers matter more than others. How much you make is important, for example, but your financial health depends far more on how much you keep.
Knowing certain numbers can help you understand how well you’re converting income into wealth, as well as the impact of your spending and tax situation on that process. In my latest for the Associated Press, the calculations that can help you make better decisions.
How can your wealth ratio get above 100% if every source of income, including especially investment income, is included in the denominator?
Appreciation. Diligent investors (or those who get lucky with real estate, stock options or other assets) could see a triple-digit wealth ratio. Not that common, though.