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Money and Finances
Reply to "What is net worth and why does it matter?"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]When you talk about your finances, do you think purely in net worth or something else? Why is net worth a measuring stick of wealth?[/quote] I think cash flow is more important. Generally, you can't spend "net worth."[/quote] Both are important. If you make $500k and have no savings you have good cash flow and zero net worth. If you have $5M and no income the opposite is true you need both. A good offense (income) and a good defense (savings.)[/quote] Except if you have $5M saved, you could easily generate income from that. [/quote]
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