The net worth ratio, also known as the solvency ratio ... the performance of your investment assets over one year. In the formula above, beginning investments are asset values from the preceding ...

Return on Investment (ROI) Definition: A profitability measure that evaluates the performance of a business by dividing net profit by net worth Return on investment, or ROI, is the most common ...

For example, if you have a mortgage on a house with a market value of $200,000 and the balance on your loan is $150,000, you can add $50,000 to your net worth. Basically, the formula is ...

Still, setting a net worth often makes the process feel daunting and non-intuitive. By focusing on income and expenses with your FI ratio, the goal feels more tangible. Santiago said ...