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Calculating percentage change is a key skill in general, but very important to personal finance. Investment returns. Budget comparisons and adjustments. Salary Analysis. Expenses analysis. All of these areas of finance require the understanding of this calculation. It’s a simple calculation, but indispensable. I use it regularly as a metric in my Balance Sheet and Income … [Read more...] about Basic Math: Percent Change

The median is the middle number in a sorted list of numbers. In other words, it is the value that separates the higher half from the lower half in a data sample, population or probability distribution. The benefit of median, particularly versus another type of average such as a mean, is that the median is not skewed by a small number of extremely large or small values. In … [Read more...] about Basic Math: The Median

The IRS breaks income into three types - earned, portfolio and passive. However, that is too simplistic for our purposes.  If broken down not based on IRS qualifications, but by how the income is derived from the perspective of your activity to generate it, we have 7 types of income.  Earned Income       | You are a Worker … [Read more...] about Eight Income Streams of Wealth Generation

The geometric mean is the average of a set of numbers by using the product of their values, as opposed to using the sum, as in the arithmetic mean. The value of this method of calculating average can be seen commonly when calculating the performance of an investment or portfolio. … [Read more...] about Basic Math: Geometric Mean Average