Welcome to the 12th issue of Metrix that Matter, a weekly newsletter from WEALTHMETRIX that helps you focus on what matters most for building and sustaining wealth. Every Saturday, we share an educational essay with actionable takeaways to guide you on your journey to financial independence.
What you’ll learn in this issue:
- Why focusing on your “financial independence number” misses the point
- The financial metrics that actually build independence
- How to calculate your Total Term score as a progress indicator
We all love to celebrate accomplishing big goals.
Marathon runners crossing the finish line. Students walking across the stage at graduation. Employees enjoying their retirement party.
These celebrations are what we dream about when we plan these goals.
But whether you’re a runner, a student, or an employee, success isn’t about focusing on the finish line. It’s about everything that led up to that moment. The daily runs, the disciplined study, the consistent work habits.
The finish line becomes a natural byproduct of the work, not the focus of it.
Financial independence works the same way. It's fine to have a target wealth number in mind, but the real work happens in your daily financial decisions – the habits you build, the systems you create, the mindset you develop. These determine whether you'll ever cross that finish line.
The metrics of financial independence
Over the past 11 issues, we've covered several of the metrics on your financial scorecard that determine your wealth-building success. They're the specific areas that can move you toward or away from independence. They are the metrics that matter on your wealth-building journey.
Your Cash Flow Decisions:
Savings Rate: Are you consistently directing a meaningful percentage of income toward your future?
Burn Rate: Are your expenses aligned with your values, or are you spending without intention?
Debt Rate: Are you using debt strategically, or is it consuming too much of your income?
Tax Rate: Are you making decisions that minimize unnecessary tax drag on your wealth-building journey?
Your Asset Mix Decisions:
Liquid Assets: Do you have enough cash and accessible investments for flexibility and opportunities?
Qualified Assets: Are you maximizing tax-advantaged retirement accounts and employer matching?
Real Estate: Is your property serving your wealth strategy, or just tying up capital?
Business Assets: If you own a business, is it building wealth or just keeping you busy?
When you focus on making smart decisions across all these areas, you naturally move closer to financial independence. You don't have to obsess over reaching some specific net worth number because you're doing the daily work that creates it.
Your Total Term score: The ultimate progress check
But how do you know if that daily work is paying off? How do you know if you’re making progress? That's exactly what your Total Term score measures.
Your Total Term score answers a simple question: "If I never earned another dollar, how many years could I potentially maintain my current lifestyle?"
It is calculated by adding up the value of all your assets and dividing by your total annual spending:
Total Term = (Liquid Assets + Qualified Assets + Real Estate Equity + Business Equity) ÷ Annual Spending
This transforms abstract dollar amounts into something more meaningful: time. And time is ultimately what financial independence is all about.
Ultimately, your Total Term score is a better indicator of financial independence than your net worth because it also considers your annual spending.
Once you calculate this score, it gives you a baseline number that helps you understand if your daily decisions are moving you closer or further away from financial independence.
WHAT TO FOCUS ON THIS WEEK
Calculate your Total Term score by adding up all four pillar totals and dividing by your annual living expenses:
Then ask yourself these questions:
- Is this number more or less than I thought it would be?
- Is my wealth balanced, or am I over-concentrated in one area?
- What's one financial decision I could make this week that moves me toward greater financial independence?
- Am I focused on the journey or just the destination?
Remember: Your Total Term score isn't just about when you can quit working. It’s about how much freedom you have right now.
ELEMENTS INVITATION
Thank you for reading. Understanding the metrics that matter for your wealth requires more than tracking individual pieces. You need to see how everything works together. That’s what Elements is designed to help you do.
Elements is a financial planning tool that organizes all your financial information in one place, then calculates the 11 key metrics that truly matter for building wealth. You'll see not just where you stand today, but how each metric relates to the others and impacts your overall financial trajectory.
Most importantly, Elements empowers you to make better financial decisions. When you understand how all the pieces fit together, the path to financial independence becomes much clearer.
If you're ready to gain this level of clarity and control over your financial situation, click the link below to get started with Elements. You'll answer basic questions about your income, spending, debt, and account values. The whole process takes about 10 minutes.
Once complete, we'll review your personalized scorecard and send you an email to schedule a complimentary 30-minute call to discuss your situation, answer any questions, and explore whether there's a fit to work together.
GET YOUR FINANCIAL SCORECARD IN 10 MINUTES
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WEALTHMETRIX
https://www.mywealthmetrix.com/
(972) 267-7526
102 S. Goliad Street, Suite 101
Rockwall, TX 75087
16475 Dallas Parkway, Suite 840
Addison, TX 75001
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