How to Identify True Financial Wealth

“Comparison is the thief of joy" Let's take a look at Person A and Person B (see image) Pretend that all we know is their Net Worth, without the details. On the surface, Person B is doing better. $100K more! Easy to assume Person B is in a better financial situation. But that may not be the case. Knowing your Net Worth alone is not enough. We need to understand the components and how they are aligned with your goals & values. -------------------- Let's do some more analysis: I would argue that Person A has more financial stability. - Has a healthy investment balance - Has a good savings balance (emergency fund) - Has nearly no credit card debt Person A has been able to save and invest. That may mean there is a healthy income and expenses are kept low. There is money left over! Person B on the other hand: - Has low savings (barely any emergency fund) - Has low investments - Has high credit card debt - Has low liquidity Person B may be spending most of the income on expenses, leaving little opportunity to save/invest. Any emergency may need to go on a credit card, hence the credit card debt. Or Person B may have chosen to put more towards the mortgage, rather than investing. Or the above assumptions could be completely wrong. There may be another 1,000 assumptions. And without knowing the true facts, we don't know whether Person A or Person B is in a better financial situation. We know nothing about their life, goals and experiences. Personally, I would rather be Person A. I prefer flexibility and diversification of assets. For me, too much $$$ stuck in a home (home equity) without other easily accessible assets would stress me out. All that to say, don't compare your situation to others. Social Media and mainstream media are doing a great job in the comparison game. It creates clicks and emotions. But at the end of the day, Personal Finance is Personal. ✅ Know your goals ✅ Align your money with those goals ✅ Create a financial plan ✅ Get your goals accomplished #knowyourkoyns

In the wealth-building game, it’s easy to think that getting rich is the hard part. But the truth is, it’s the “keeping” that proves to be the greater challenge for many of us. Morgan Housel calls this the paradox of wealth: Getting rich requires optimism, risk-taking, conviction, bold moves. Staying rich requires paranoia, frugality, humility, and a deep respect for risk. Very few master both.  They’re different personality traits. They’re different mindsets. Wealth isn’t just about spreadsheets and stocks. It’s about behavior. And it’s more fragile than we like to admit. Housel writes: “Spending money to show people how much money you have is the fastest way to have less of it.” That hits because we tend to overestimate how much others care. No one’s thinking about you car, your house, your watch. They’re too busy imagining themselves with it. Ironically, some of the wealthiest people are the biggest slaves to money. Trapped by ego. Driven by comparison. They may have money, but little freedom. They spend to signal status, not to secure independence. Meanwhile, the quiet millionaires live below their means, accumulate assets, and sleep well at night. Not because they’re cheap, but because they understand the tradeoff. Control over your time is worth more than fleeting admiration because true wealth isn’t what you flaunt. It’s what you don’t see. It’s the calm that comes from savings. The flexibility to walk away, or stay, on your terms. The quiet confidence that your self-worth isn’t tied to your net worth. One of @morganhousel’s core lessons is this: Real wealth is the ability to wake up and say: “I can do whatever I want today, with whomever I want, for as long as I want.” And the path to that kind of freedom? It has less to do with strategy, and everything to do with restraint.

A big income does not equal wealth. I know that sounds crazy, but let me explain. You can bring in a $500k paycheck, but if your money’s going right back out the door—on expenses, taxes, and debt—you’re not building wealth. You’re just living big for the moment. True wealth isn’t about how much you earn It’s about how much you keep. Better yet, it’s about how you grow it. → Are you saving and investing strategically? → Are your assets tax-efficient and working for you long-term? → Do you have a plan that goes beyond just making more? Wealth is built by what you do with your money, not just by how much you make. It’s the person who understands cash flow, taxes, investments, and risk management that probably ends up wealthy. Not just the person with the highest salary. Take a look at your income, but more importantly, take a look at your PLAN. Are you just making money, or are you building wealth for your future? Because income alone won’t get you there. 💪