What is net worth and why does it matter more than income?
When people talk about financial success in India, they almost always talk about income. "He earns ₹25 lakh per annum." "She just got a ₹40 lakh package." But income is only half the picture — and often the misleading half.
Net worth is the true measure of where you stand financially. It is everything you own minus everything you owe.
Net Worth = Total Assets − Total Liabilities
A person earning ₹50 lakh per year but spending ₹48 lakh and carrying ₹30 lakh in loans has a lower net worth than someone earning ₹10 lakh per year who has saved and invested consistently for a decade. Income measures what comes in. Net worth measures what you have kept and grown.
This is the number FlowTrack tracks because it is the number that actually determines your financial freedom, your ability to weather emergencies, and your readiness for retirement.
Info
Related articles
Understanding cash flow — the metric that predicts financial health
Cash flow is the pulse of your finances — learn to read it.
Your first net worth snapshot — a 5-minute setup guide
Get your first net worth number in under 5 minutes.
Understanding your net worth dashboard
A walkthrough of your net worth dashboard and what every number means.