Why track Net Worth instead of Income?
Income measures how much money you make. Net Worth measures how much money you keep. Many high-income earners have a negative net worth because their liabilities (luxury car loans, massive mortgages) exceed the value of their assets.
Intelligence Insight: Pay close attention to your Liquid Net Worth. If a financial emergency strikes, you cannot easily sell 10% of your house to buy groceries. True financial security comes from having a high liquid net worth.