There are a lot of ratios in personal finance but there's one that has nothing to do with finance and is the key to determining whether you’ll have a successful retirement
Share to linkedinThere are a lot of ratios in personal finance. Most are used to determine your financial health and how financially ready you are for retirement. But one ratio has nothing to do with finances and is the key to determining whether you’ll have a successful retirement.
To increase the probability of a happy, successful retirement, you need to pay attention to the 3:1 ratio, also known as the positivity ratio. The positivity ratio expands on this concept and holds that to be happy people need day-to-day satisfaction and positive experiences that exceed their negative experiences. The formal version of the positive ratio says that for people to thrive emotionally they need to have three positive experiences each day for every negative one.
What does survive is the people in general are happier and more satisfied with life when they have more positive emotions and experiences than negative ones.
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