Which defines what makes a person wealthy to you, income or net worth?

[wolfcat87]

Which is more important in categorizing who is wealthy in your mind?

Income

Net worth

Other

[NathanDavis]

to me... the truly wealthy are those who have gone from making "their own money" to making money from other's money

wealth means abundance... so, at least in my regions... when we say wealthy, we do refer to a certain sector of level in which these people have so much more money in their hands and not just their own money which they already made and yes, many of them have a 'normal income" but their net worth is so vast that they don't even care about "money" anymore... what they see is numbers in profits that are "not a thing" for most people, unless you invest that kind of assets

[LiamJHayden]

1. If someone has suficient assets to live comfortably for the rest of his or her life.
2. If someone has enough passive income to do the same.

[veganrogue]

Net worth is the only way to determine true (financial) wealth. I know one guy who earns deep in the six figures (income) that lives way beyond his means and is saddled with massive debt. I'm no accountant by any stretch of the imagination, but I'm good at running spreadsheets and business math. He asked me to help him sort out his finances (because he didn't have an accountant!) and when all said and done, he had a negative net worth! I told him he's got to stop spending frivolously, reduce his debt and start investing. Luckily he's young enough, mid 30's, and he's got a great income to rebound from his financial quagmire, and over the past two years he was disciplined, and now he's net worth is positive and growing month by month.

[Hanrej]

I'm not sure exactly how net worth works. My understanding is that it counts the worth of all your assets (that are privately owned) but I'm less sure if it subtracts any dept or loan you may have. Either way I doubt there's any sure way to ascertain a persons economy.

[wolfcat87]

Yes, it subtracts all debts from the total value of what a person owns.

[Hanrej]

Oh? Then net worth.

[Anonymous]

On paper it’s net worth but it also depends on how much of those are liquid assets. I know a guy who basically has no money on his bank account but he has a lot of assets. He’s still broke bcs he’s having difficulties selling those assets and converting them into cash 🤷🏻‍♀️ so I guess cash is king.

[veganrogue]

Those assets maybe hard to move but most likely they will maintain or increase in value over time. In the investing world, 'cash is trash' as it loses value every day due to inflation, when it could be invested to earn a return.

[Opinion Owner]

@veganrogue that’s very true, good point!

[exitseven]

It is net worth. They are so rich that they do not need an income.

[searchway]

To me, net worth defines wealth more than income, because income is what you earn, but net worth shows what you keep, grow, and own. Someone with high income but tons of debt or weak savings might have a low net worth.

If you like, Finest News often shares stories of people’s financial journeys, comparing how net worth evolved over time. It really highlights why net worth matters beyond just earning a lot.

[jamesgoldman]

Net worth

It's not what you make, it's what you keep

[EmmaMary]

Health, Happiness and having Loving Supportive Families.

Something all the wealth (money) in the world can't buy.

[Drewtate]

Income is what you have coming in on a weekly, monthly, yearly basis.

Net worth is what money and assets you have.

[RavVid]

Over time they follow each other. High income leads to high net worth. High net worth should result in high income

[Nikki1989]

Money is just numbers and rather meaningless in the long run. The best things in life, money can't buy.

[genericname85]

the ammount of money you have in your account. cause net worth is pure speculation and income can be spent quickly.

[Anonymous]

income. networth is assets and they only matter if you actually sell those...

[noohair]

George Baily was the richest man in town and he had neither High income ot net worth.

[Jerre]

Net worth by far

[Jerre]

@wolfcat87 Thank you for the Like

[Jennz6]

Being satisfied

[love_conquers_lust]

Between the two, net worth.

[boobliker]

both and how you treat others

[CubaPirate]

Health and happiness