Reply to At what net worth are you considered wealthy ?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]It depends on the assets. Net worth doesn’t make you wealthy. Cash flow makes you wealthy. Cash flow is more important than net worth. [/quote]

You sound like someone who lives above your means.  NW always connotes wealth....not how much you earn and spend.  I know plenty who earn over $500K but have little to show for it....others earn far less and have a health NW[/quote]

It's your ability to generate cash flow that makes you wealthy, not your net worth. 
Person 1: [b]No debt but only $10 in their account and no source of income. Positive net worth of $10. Can't pay rent and end up on the street and homeless.[/b]
Person 2: Owe $2M to a bank. Has assets that are valued at $1.5M. Has a job making $300k a year. Negative net worth -$500k. Live a good life in a nice house.

I'm sure you would rather be Person 1 because they have a positive net worth. lol
Net worth isn't everything.

If your net worth can't generate cash flow, it means nothing.

[/quote]

This is an extreme example.  Unless it's stolen bitcoin on an USB or a rare diamond/art that cannot be sold your Person 1 scenario is unrealistic.  While I get that a $10M business may not generate as much cash as, say, a stock portfolio, the owner will still be able to extract some cashflow out of it to sustain themselves.  It would be a pointless business otherwise and not something I've encountered.[/quote]

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