Most people think wealth is about income.
It isn’t.
It’s about what you keep, what you grow, and how fast it compounds.
If you don’t know your net worth, you’re financially blind.
If you don’t know your Financial Independence Number, you’re walking without a destination.
And if you don’t track your progress, you’re relying on hope instead of strategy.
Let’s fix that.
What Is Net Worth (And Why It Matters More Than Your Salary)
Your net worth is your true financial scoreboard.
Net Worth = Everything You Own – Everything You Owe
Assets (What You Own)
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Cash and savings
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Investments (ETFs, stocks, crypto, bonds)
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Property
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Business equity
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Retirement accounts
Liabilities (What You Owe)
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Mortgage
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Personal loans
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Credit cards
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Student loans
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Car finance
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BNPL balances
Your income tells people how impressive you sound.
Your net worth tells the truth about your financial future.
A person earning $15K/month but spending $14,800 is poorer than someone earning $3K/month who saves and invests consistently.
Net worth measures freedom, not ego.
Your Financial Independence Number (Your Real Target)
Your Financial Independence (FI) Number is the amount of invested wealth required to fund your lifestyle without working.
It’s the number where your money starts paying for your life.
The simplest and most powerful formula:
FI Number = Annual Living Expenses × 25
Why 25?
Because it’s based on the 4% Rule – a proven safe withdrawal rate that allows your portfolio to grow while you live off it.
Example:
| Lifestyle | Annual Expenses | FI Number |
|---|---|---|
| Lean lifestyle | $25,000 | $625,000 |
| Comfortable | $50,000 | $1,250,000 |
| Luxury | $100,000 | $2,500,000 |
Your FI Number isn’t about being rich.
It’s about being untouchable.
No boss controls your time.
No job dictates your future.
No panic if income stops.
You own your days.
Why Tracking Is the Difference Between Dreamers and Doers
Here’s the brutal truth:
You cannot grow what you do not measure.
People who “want to be rich” but don’t track:
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Don’t know where their money leaks
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Don’t know if they’re actually progressing
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Stay stuck in hope-mode for decades
People who track:
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See momentum building
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Adjust strategy early
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Compound faster
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Reach freedom years earlier
Tracking turns motivation into momentum.
What to Track Monthly
You need three numbers:
1. Net Worth
Track total assets minus liabilities.
This is your financial heartbeat.
2. FI Progress %
Net Worth ÷ FI Number × 100
This tells you how close you are to owning your time.
3. Investment Rate
How much of your income you’re actually investing (not just saving).
High investment rate = fast freedom.
What Happens When You Start Tracking
You’ll notice powerful shifts:
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You naturally spend less
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You invest more intentionally
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You become obsessed (in a good way) with progress
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Your decisions start aligning with your future, not your impulses
Your money stops drifting.
Your life starts compounding.
Final Truth
Financial independence isn’t accidental.
It’s engineered.
Your net worth is your score.
Your FI number is your target.
Your tracker is your roadmap.
Everything else is noise.
Start tracking.
Start building.
Start becoming untouchable.
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