"Net Worth: Why It Matters More Than Your Salary"

Your Salary Doesn’t Make You Rich. Your Net Worth Does.

Let’s play a game.

Who’s wealthier?

• Person A: Makes $150,000 a year, drives a brand-new truck with an $80K loan, has designer everything, and lives in a house they can barely afford.

• Person B: Makes $50,000 a year, drives a used car (paid off), invests regularly, and actually has money left over at the end of the month.

If you guessed Person B, congrats—you win at financial common sense. Because a high salary doesn’t mean squat if you’re spending it all.

Your paycheck is like a flashy Instagram post—looks great, but what’s behind it? Net worth is the real story.

How to Calculate Net Worth (Without a Math Degree)

Here’s the formula:

📌 Net Worth = Assets – Liabilities

Or in plain English:

• Assets = Things that make you money (investments, savings, your 401(k), that old baseball card collection your grandpa swears is valuable).

• Liabilities = Things that take your money (credit card debt, student loans, car loans, that $2,000 couch you financed for reasons).

Example: Your Net Worth Scorecard

You own:
✔ $20,000 in savings
✔ $50,000 in a 401(k)
✔ A paid-off car worth $10,000

You owe:
❌ $5,000 in credit card debt
❌ $15,000 in student loans

📌 Net Worth = ($20K + $50K + $10K) – ($5K + $15K) = $60,000

That’s your real financial status. If your number is negative, don’t panic—that just means we have some work to do.

The Birthday Gift That Keeps on Giving

Tracking your net worth isn’t just a good habit—it’s a little gift to yourself.

I personally check mine every year during my birthday month. Some people want cake, I want to see my money grow. Nothing says “Happy Birthday to Me” like watching that number go up. 🎉

If you’re not tracking your net worth at least once a year, start now. Your future self will appreciate it way more than another pair of socks.

Why Net Worth is the Real Flex

• A person making $200K a year but spending $210K is living on borrowed time.

• A person making $50K a year and saving $10K is actually winning.

👉 Your paycheck pays the bills.
👉 Your net worth builds wealth. 

And wealth is what lets you stop working someday!!!!

How to Grow Your Net Worth (Without Giving Up Everything Fun in Life)

1. Shrink Your Liabilities (a.k.a. Stop Making Banks Rich)

• Pay down high-interest debt first (credit cards are robbing you blind).

• Stop financing stuff you don’t need (do you really need a $1,500 couch that massages you?).

• Avoid lifestyle creep—if you get a raise, invest it instead of upgrading your car.

2. Grow Your Assets (a.k.a. Let Your Money Work for You)

• Contribute to your 401(k) or IRA (your future self will send you a thank-you card).

• Invest in index funds & ETFs (set it, forget it, let it grow).

• Keep some cash in a high-yield savings account (3-5%) for emergencies.

Final Thought: Your Salary is Temporary. Your Net Worth is Forever.

You can make six figures and still be broke.
You can make $50K and retire a millionaire.

The difference? Net worth.

Start tracking it. Start growing it. And maybe even make it a yearly tradition like I do—because the best birthday gift is knowing Future You is winning.

🚀 Next week? We break down index funds—the easiest way to invest without stress.

Got questions?  Go to the "Call to Action" Page and set up an appointment.