The reason we need to be focused on net worth

    Our net worth is defined as total assets minus liabilities. Basically these are the amounts accumulated in our investment accounts plus any personal property minus debt. This sounds boring at first so why should we focus on it, at least annually? I may not be super wealthy, but I know how they think about money. Wealthy individuals live off of interest and dividends. They don't touch the golden goose. The golden goose or principal that generates these earnings is their net worth. When our net worth can generate an income big enough, we can do what we want with our time. This could be working part time for some, or retiring all together for others, it's our choice. Everybody's golden goose or net worth number is going to be different. There is a tipping point where an individual starts to realize they have enough, depending on their income goals. See you next time Finwiz.