How you determine you wealth (in term on dollars and cents) ?
Best formula I found is how long you can survive without your monthly salary. The formula as follows:
Passive Income ($) + Saving ($) / Monthly Expense = Wealth (in month)
For example:
My Passive Income is $0.
My Saving is $5000.
My monthly expense is $1000.
Thus, my wealth is only 5 months.
Wednesday, October 25, 2006
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