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ᵉʳⁱ𝕭𝖑𝖆𝖈𝖐 𝗦𝕥𝕒𝕣🌟
ᵉʳⁱ𝕭𝖑𝖆𝖈𝖐 𝗦𝕥𝕒𝕣🌟
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Tuesday 29 September 2026 00:11:47 GMT
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👀 Cash Flow vs Net Worth Here’s my take. In the beginning of your personal finance journey, cash flow is far more important than net worth.  1️⃣When we start our personal finance journey, we are starting from square one. We earn income, we have expenses. Sure it would be great if we were able to plunk a million bucks in our accounts from the get go, but even if that were the case, if we do not know how to manage it, we would just be cash flow negative and would draw on that balance until it disappears. In the beginning, it is important to understand your cash flow patterns, what levers you can pull to increase your cash flow (difference between income and expenses), and how to manage it.  💵 Still towards the beginning phase, it is important to keep increasing your cash flow, which will lead into net worth (assets minus liabilities… or what you own minus what you owe). The way I see it… once cash flow is handled… and additional cash flow does not materially improve your financial situation… then net worth makes much more sense to focus on.  🏠 Where I am at personally… I have a good handle on personal finance and investing. While my net worth has definitely gone up over the last six years since leaving college… my expenses have too… especially in the last couple years… as I am married, own a house, and now have a newborn at home.  As my cash flow has decreased due to added expenses, even though my earnings have increased at a healthy rate, I have come to the realization that I what u really need right now, is additional cash flow. Sure, much greater net worth sounds nice… but what u need to focus on is cash flow to increase breathing room for my family and add optionallity to our lives.  Increased personal cash flow is the primary goal for the foreseeable future. I will be sharing my journey, projects, and learnings along the way.  Follow along if that kind of journey piques your interest. Let me know what you are working on and let’s grow together 💪 #PersonalFinance #investing #selfdevelopment #networth #cashflow
👀 Cash Flow vs Net Worth Here’s my take. In the beginning of your personal finance journey, cash flow is far more important than net worth. 1️⃣When we start our personal finance journey, we are starting from square one. We earn income, we have expenses. Sure it would be great if we were able to plunk a million bucks in our accounts from the get go, but even if that were the case, if we do not know how to manage it, we would just be cash flow negative and would draw on that balance until it disappears. In the beginning, it is important to understand your cash flow patterns, what levers you can pull to increase your cash flow (difference between income and expenses), and how to manage it. 💵 Still towards the beginning phase, it is important to keep increasing your cash flow, which will lead into net worth (assets minus liabilities… or what you own minus what you owe). The way I see it… once cash flow is handled… and additional cash flow does not materially improve your financial situation… then net worth makes much more sense to focus on. 🏠 Where I am at personally… I have a good handle on personal finance and investing. While my net worth has definitely gone up over the last six years since leaving college… my expenses have too… especially in the last couple years… as I am married, own a house, and now have a newborn at home. As my cash flow has decreased due to added expenses, even though my earnings have increased at a healthy rate, I have come to the realization that I what u really need right now, is additional cash flow. Sure, much greater net worth sounds nice… but what u need to focus on is cash flow to increase breathing room for my family and add optionallity to our lives. Increased personal cash flow is the primary goal for the foreseeable future. I will be sharing my journey, projects, and learnings along the way. Follow along if that kind of journey piques your interest. Let me know what you are working on and let’s grow together 💪 #PersonalFinance #investing #selfdevelopment #networth #cashflow

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