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Wealth Accumulator Calculation

August 19th, 2007 · No Comments

The Swiss_Mouse had to think a bit, but he believes his calculation for Expected net worth came from a book by Thomas J. Stanley. It was The Millionaire Next Door.
He also wrote The Millionaire Mind .

Regardless, the Swiss_Mouse uses two other calculations from those books to gage his overall financial well being Wealth Accumulator Rank and Wealth Accumulator Factor.

Wealth Accumulator Rank

This ranking is basically an indicator of how your net worth matches up based on your age and income.

IF Current net worth is Greater than Twice Expected net worth then

Rank = “”Prodigious Accumulator of Wealth”

Else IF Current net worth is less than 1/2 Expected net tworth

Rank = “Under Accumulator of Wealth”

Otherwise

Rank =”Average Accumulator of Wealth”

Wealth Accumulator Factor

This is simply a numerical representation of Wealth Accumulator Rank. It gives you a quantitative measurement of how well you are progressing to become a Prodigious Accumulator of Wealth.

Simply put Wealth Accumulator Factor = Current Net Worth / Expected Net Worth.

The Swiss_Mouse presents you with his numbers:

  • Wealth Accumulator Rank: Average
  • Wealth Accumulator Factor: 0.9619
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