Accumulation vs Cash Flow
As we’ve repeatedly stated, here, here, and here for example, cash flow is a much better indicator of true wealth than net worth. Net worth is a static number that doesn’t impact your life. As a matter of fact, the more wealth that you have accumulated, the more unlikely you are to want to dig […]
Computing Your Own Net Worth
Net Worth is the sum total of assets minus liabilities. In financial terms, when you subtract all the money that you owe from that which you own – you are left with your net worth. Most financial pundits consider this the be all/end all number defining your wealth. As you’ll see, cash flow is a […]