Most (98%) are homeowners, 60% are college graduates, and they have a median income of $240k per year with a net worth of just under $2.9 million. Thomas Stanley goes on to show just how wrong that statement is вЂ“ these millionaire businesswomen are kind, caring, mostly married, and generous. That guy really must have had some bad experiences. The book opens with a male business owner ranting to the author about how successful women are вЂњunmarriedвЂ¦ unkindвЂ¦ uncaringвЂ¦ unlikedвЂ¦ undesirableвЂ¦ unattractiveвЂ¦ unwantedвЂ¦ a bunch of angry, revenge-seeking workaholicsвЂќ. Higher numbers are better here вЂ“ the higher the number, the closer you likely are to financial independence.Example: The same 30 year old above has an EPI of $1.43 вЂ“ for every dollar of income, they have $1.43 of wealth.This gives you the number of dollars you have in net worth per dollar of income EPI, Economoic productivity index = RON/100.The lower your number, the more economically productive you are вЂ“ and the closer you are to financial independence So every year, this person realizes 70% of their net worth as income.Example: The same 30 year old making $70k per year has a total net worth of $100k.The higher the number, the higher your taxes вЂ“ and the less time you could live without an income RON, return on net worth = Income divided by net worth.This formula shows you how much of your total net worth you realize as income each year.If youвЂ™re significantly over this amount, youвЂ™re a prodigious accumulator of wealth, and balance sheet affluent If youвЂ™re significantly under this amount, youвЂ™re an under accumulator of wealth, and income statement affluent.Example: YouвЂ™re 30 years old making 70k per year.Now that IвЂ™m 36 and not 26, they work better Side note вЂ“ I first read these books in my 20вЂ™s, and the formula does not work well when youвЂ™ve only been in the work force a few years.Whether youвЂ™re under or over this forumla will show how good (or not) you are at transforming income into wealth. Expected net worth = 1/10 (age) * annual realized income.Stanley again gets out his UAW/PAW (under accumulator of wealth/prodigious accumulator of wealth) formula, in addition to a few others, to help you see where you stack up on the wealth scale:

Formulas To See How (Financially) Well YouвЂ™re DoingДr. This is a true fact no matter what your gender. Money will work for you under the right circumstances-and will work against you in the wrong ones. Money doesnвЂ™t know if youвЂ™re a man, woman, or a polka-dot-purple kangaroo. Why is that? Because the path to becoming a millionaire doesnвЂ™t care about your gender. Interestingly, if youвЂ™ve read The Millionaire Next Door and The Millionaire Mind, you wonвЂ™t find a lot of new insights or advice here. He also talks about women who вЂњrun the family officeвЂќ, meaning that theyвЂ™re a stay at home parent who manages money and finances to help the entire family achieve success. This book is primarily about women business owners, although toward the end he does feature women who achieved millionaire status through part-time work, and through regular jobs. If youвЂ™re a woman (like me), you probably noticed that his original Millionaire Next Door book featured almost all men (92% men, according to of this book). If you buy the book, IвЂ™ll receive a small commission at no cost to you. Note вЂ“ The link to the book is an affiliate link. Thomas Stanley, who also wrote such great books as Stop Acting Rich and Start Living Like A Real Millionaire and The Millionaire Mind, also wrote a book about millionaire women? ItвЂ™s called Millionaire Women Next Door. If youвЂ™re an avid personal finance geek like me, you probably are well aware of The Millionaire Next Door (one of the four books that changed my financial life).

Millionaire next door wealth formula