In his book Stop
, author Thomas Stanley explained a way to calculate
your relative net worth, taking into account both your age and your
income. He used this calculation to create a wealth index, which
you can use to judge whether you are on the path to FI, or whether
you are burning more of your income than you should.
In the episode I explain how the wealth index is calculated and
provide commentary on how to use it. There is also a free website that does the
calculation for you.