financial independence

The Swan’s FIRE Prowess Gauge – My Results

The Green Swan has created a nice indicator of your progress and commitment to FIRE. It’s a very simple calculation but actually encompasses a number of subtleties. To calculate your number you should calculate:

FIRE Prowess = Change in Net worth / Total Gross Income

So it is a measure of how fast your net worth is increasing relative to your income. For those on an early path to FI with little savings the number is likely to be low, but for those with a fat wad throwing off investment earnings each year it could be quite a large number. However for those starting off on a path to FI their prowess can be improved with lower spending and an increased spending rate.

That’s a quick summary, and please take a look at the original post for more details and all the other blogs in the chain.

My Results

I calculated 2015 and 2016 numbers as 57% and 61% respectively. I’m actually pretty pleased and surprised it is as good as that. I have always been a saver, but in recent years I have let lifestyle inflation drift up and so I think there is a lot of fat I can trim and ramp up the 2017 number!

What I learnt

I’m ashamed to say that I’m not even that confident about those numbers since I’ve only been using Mint and Personal Capital for the last couple of years, and when I tried to attribute the changes I couldn’t account for how my net worth has risen so much this year (yeah – I know, good problem to have!). So if you will permit me one piece of advice – get your shit together and keep proper records.

Here is the chain gang – check out the stories!

Anchor:  The Green Swan – The Swan’s FIRE Prowess Gauge  2016:  132%  Lifetime: 93%


What about you?

What’s your number and what do you think about your progress? More room for improvement like me, or are you steaming along?


20 thoughts on “The Swan’s FIRE Prowess Gauge – My Results”

  1. AoF – welcome to The Chain Gang! Fascinating to watch as more folks add their numbers, it seems a very valid indicator of wealth building prowess! You’re officially in as Link #15!! Thanks for joining the fun.

    1. Thanks – but I sleepwalked into my scores really so I give myself a solid ‘B’. I’m aiming for an ‘A’ next year…

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