Relative Wealth Index Calculator
The Formula Simplified The RWI is calculated by dividing your net worth by your consumable assets. It’s a straightforward formula with profound implications:
\[ \text{Relative Wealth Index} = \left( \frac{\text{Your Net Worth (What You Own)}}{\text{Your Consumable Assets (What You Use Everyday)}} \right) \]This formula helps you see if you’re living within your means or if your lifestyle might be eating into your savings. It’s a wake-up call to think about whether your spending today is helping you build a secure tomorrow.
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