Calculate exactly how much of your income you're turning into real wealth every year
Based on: This Formula Shows How Well You're Really Building Wealth (Income → Wealth) by Erin Talks Money | Erin Moriarity
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Do you actually know how much of your income you're converting into real wealth — not the number that spikes when the stock market has a lucky year, but the number that reflects your discipline, your habits, and your actual financial effort? Most people have no idea. They glance at a 401k balance or a net worth statement and feel either vaguely good or vaguely anxious depending on what the market did last month. But here's the problem: that number isn't really you.
You're working hard, making sacrifices, trying to do the right things with your money — and the standard metrics don't give you credit for any of it. One bad market year can make it look like you went nowhere, even when you saved aggressively. One great market year can make you feel like a genius when you barely contributed a dime. Neither picture is honest, and neither picture helps you improve.
Imagine having a single clean number that cuts through all of that noise. A number that shows exactly how much of your gross income you converted into lasting wealth last year — stripping out market swings entirely, counting every dollar you saved, invested, or paid toward debt principal. A number you can track year over year, improve on purpose, and use as an honest scorecard of your financial life. That's exactly what Erin Moriarity of Erin Talks Money built with her Income to Wealth Conversion Rate formula, and it changes how you see your progress entirely.
Erin has spent years breaking down personal finance in a way that's clear, practical, and genuinely empowering. Her formula is elegant: take your change in net worth excluding market gains, add the debt principal you repaid, and divide it all by your gross income. The result tells you whether you're in the 5-15% range just getting started, the 15-25% sweet spot of consistent wealth building, or the 25-30%+ territory of aggressive financial momentum. It's not about perfection — it's about knowing where you stand and having a target to beat next year.
This checklist walks you through every step of calculating your own conversion rate, understanding your benchmark, and taking the four specific actions Erin recommends to raise your number over time. Whether you're running the numbers solo or for your entire household, every step is laid out clearly so you can complete the whole exercise in one focused session.
Open this checklist, run your numbers, and find out where you really stand. Your financial future deserves an honest look.
Every checklist item comes with actionable notes to guide you — things like "Don't forget to do this before you start," "Avoid this common mistake," or "Set a reminder for 30 days out." Nothing vague, just clear next steps.
+ 10 more action items inside...
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