Income tells you how much money flows through your life. Net worth tells you how much you have actually kept. It is the most important number in your financial life.
What Net Worth Is
Net worth is assets minus liabilities. A positive net worth means you own more than you owe. A negative net worth means your debts exceed your assets.
Why It Matters More Than Income
A person earning KES 300,000 a month but spending KES 310,000 has a declining net worth despite a high income. A person earning KES 80,000 and investing KES 15,000 has a growing net worth despite a modest income. Financial freedom is achieved through net worth, not income.
Tracking Progress
Calculate your net worth every quarter. A simple spreadsheet is sufficient. The goal is a steady increase over time. Some quarters will be flat or negative — the trend over years is what matters.
Your Action Step
Calculate your net worth today. Write down every asset and every liability. Total them. Whatever the number — positive or negative — that is your starting point. Every financial decision from now on is about improving that number.
