Net Worth Conversion Ratio

Net Worth Conversion Ratio – A Measure of Wealth Building Efficiency

Gen Y Finance Guy Financial Ratios 36 Comments

There is never a dull moment in Personal Finance, am I right? I am not sure if it’s just me, but I am constantly think of ways to look at personal finance through different perspectives and lenses. A while back I took a stroll down memory lane to figure out how long it would/had taken me to earn my first $1M in earned income. That analysis got me wondering how much earned income Mrs. GYFG and I had earned on a combined basis (I will share shortly). But ultimately the reason I wanted to see how much we had earned as a team was to figure out how efficient (or inefficient) we had been at converting our income to wealth …

Personal Leverage Ratio

Your Personal Leverage Ratio

Gen Y Finance Guy Financial Ratios 2 Comments

Based on the short amount of time I’ve been writing, you may have gotten the wrong message. Yes, I am working diligently to pay off the mortgage early on my primary residence. However, this does not mean I think all debt is bad or evil. Consumer debt is pure evil when you are the borrower! If you are the investor/credit extender it can be very profitable (check out Prosper if you would like to get a piece of this action). If you have consumer debt, pay it off as fast as humanly possible, and never look back. When it comes to non-consumer debt or what I like to call productive debt, I am totally for it. Before we talk about what your leverage ratio …

50% Savings Rate

Saving 50% of After-Tax Income – The Rule That Now Governs Our Financial Life

Gen Y Finance Guy Financial Ratios 51 Comments

This blog has proved to be a great source of accountability, for both my wife and me. There is something about laying it all out in the public (or “on the line” ) that creates a sense of duty and motivation to deliver positive financial results. Even my wife, who is only a passive reader of the blog, told me the other day that she thinks twice about spending money because she wants me to be able to publish financial reports that prove that we practice what I preach. Isn’t that cool that Mrs. GYFG is thinking about our community? She realizes the importance of the platform we are building together. Although she doesn’t write for the blog (one day I hope to …