When asked to measure the success of your financial life, you may immediately think of defining your success by your bank account balance, how big your house is, or what your credit score is. Yet, none of these show you the entire picture of your financial life. This is precisely why I created my own metric — Power Percentage™. It measures what you’re doing now to improve your financial life, and how close you are to creating financial independence. Power Percentage™ also happens to sniff-out lifestyle creep, evaluate your mortgage strategy, and recognizes debt elimination. Use the scale below to see how you need to improve.
This chart will calculate your personal Power Percentage™, but if you’d like to calculate your family’s Power Percentage™ include your partner’s information along with your own.
**Important note: Do not include any auto loans in this calculation. Since vehicles are a depreciating asset, payment toward this type of debt doesn’t impact your Power Percentage™ negatively or positively.