Tracking progress is important. It keeps your focus on the end goal: have enough money or passive income to be financially independent. A lot of people do not only track it, but also share it on their blog. This is great, as it shows to people that it is not a theory to become FIRE. It demonstrates that it is something that can be done, by normal living beings. Sharing this info is something I want to do in a way that people can see my progress, but have no clue on my actual net worth. It is personal finance after all.
Many anonymous alternatives exist, as I have seen on other blogs
1- show how many monthly expenses your current net worth covers: The E factor
2- compare the safe withdrawal rate of the current portfolio with your monthly expenses
3- track progress in pct towards a communicated financial goals (I want to make a million dollar)
None of the above satisfies my current need to keep the info personal. So, the walnut index will be used track our family progress towards financial independence. The index will be a progress tracker that allows me to share progress, and yet have the feeling that the info is kept personal.
Maybe I am being extreme on my privacy, maybe in doing so, I nurture the Belgian behavior that speaking about finance is not done. But it is what comforts me for now.
The amberindex will simply be a number that shows how the given fund has evolved since the beginning of 2015.
As from the net worth report of May, the amber index will express in percentage how far I am in reaching my number. 100 pct means that in theory, according to my model, we are financially free…