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.
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%
- Link 1: The Retirement Manifesto – Is Your Wealth Building On Track? 2016: 57% Lifetime: 44%
- Link 2: OthalaFehu – My Swan FIRE Prowess Numbers 2016: 72% Lifetime: 61%
- Link 3: Budget On A Stick – My FIRE Prowess Score 2016: 52% Lifetime: 55%
- Link 4: Shnugi – Calculating My Savings Rate 2016: 71% Lifetime: 54%
- Link 5: Dads Dollars Debt – DDD’s FIRE Prowess 2016: 26% Lifetime: 32%
- Link 6: Debts To Riches – My FIRE Prowess Report Card 2016: 29% Lifetime: 43%
- Link 7: Adventure Rich – The Adventure Rich FIRE Prowess Score 2016: 45% Lifetime: 47%
- Link 8: Freedom Is Groovy – The Groovies FIRE Prowess Score 2016: 163% Lifetime: 90%
- Link 9: Working Optional – Calculate Your Progress To Financial Freedom 2016: 97% Lifetime: 75%
- Link 10: Budgets Are Sexy – My Total Lifetime Wealth Ratio: 2016: 135% Lifetime: 60%
- Link 11: Life Zemplified – FIRE Prowess Score for Life Zemplified 2016: 78% Lifetime: 76%
- Link 12: Physician’s Wealth Services – Physician Wealth’s FIRE Prowess 2016: 43% Lifetime: 46%
- Link 13: Married And Harried – Married And Harried FIRE Prowess Score 2016: 32% Lifetime: 14%
- Link 14: Ms. Liz Money Matters – Introducing the FIRE Prowess Score 2016 279% Lifetime: 72%
- Link 15: Actuary On Fire: The Swan’s FIRE Prowess Gauge – My Results1 2016: 61% Lifetime: 59%
- Link 16: Trail to FI: FIRE Prowess Score, Trail to FI Edition1 2016: 34% Lifetime: 53%
- Link 17: Maximum Cents: Maximum Cents’ FIRE Prowess Score 2016: 94% Lifetime: 70%
- Link 18: Retiring On My Terms: ROMT’s FIRE Prowess 2016: 119% Lifetime: 57%
- Link 19: Minafi: The Minafi FIRE Prowess Score 2016: 74% Lifetime: 94%
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?