I think this net worth comic is really very good and it reflects to reality. Credit to the comic author of this. So, let's guess who has the highest net worth here?
Yes, surprisingly the beggar has the highest network of $2.73 cash!!! It is just like our normal life, can we really tell who has the highest net worth? Is it by the cloth they dress (e.g. dress classy like PSY)? or by the car they drive (e.g. drive BMW)? or by the house they stay (e.g. awesome renovated house)?
P/S: Hopefully we all don't fall into a trap that we just merely want to appear to be rich, thus aware of your actual net worth is essential in personal finance.
11 Comments:
Well Champ, i think it's not just net worth we should know but more of "investment/investable assets".
Reason: Big house paid off may be 90% of net worth BUT it doesn't generate cash flow or returns to live on. Worse - cost $ to upkeep.
Some fellows can say sell house lar, capital gains. Yeah - then buy another to live in? And cost of moving? Add to it that most people dont want to move once they like a place.
Just a thought
Yes, I agree with you. Cash flow is another important element too in personal finance. In the world of Rich Dad by Robert Kiyosaki, house is not an asset.
Not because he has declared bankruptcy but all the while from my perspective, I still think house is an asset regardless of whether it brings any income to you. In fact, car to be is an asset too but is depreciable asset.
The most important thing is you cannot totally ignore cash flow by only looking at net worth.
Just want to question if anyone ever read this, Net Worth or Cash Flow? Which is more important if we have to choose one?
to me, everything around us is an asset...the question is, how long will they remain as an asset before they become a liability?
So deep, don't really get it. :D Can you explain more?
I am a retiree...is net worth or cash flow more important? In my case,cash flow comes from my net worth..! so both are important as they are complementary & in synchronize.Well,build up your net worth and the cash flow issue is somewhat easier especially when you are retired.
Thanks for your comment and you made a good point. Is it fun to be retiree? Just curious...
By looking back Alvin's comment, I probably know what he meant now .I think he don't really care the term as long as he can maintain the asset. In order word, both are equally important as most of us agree. :)
For me, if I have to choose one, I think I will choose "Net Worth" too because it is really fundamental and after that, is cash flow. Anyway, I think Alvin is right - no point, both are equally important. lol! :)
Is it fun to be a retiree for 2.5 years?....I will answer you this way..well,it is about the best time so far in history for one can easily set up a daily routine quite readily ...exercise routine in the morning from 7-8am..> breakfast/gossipy session with your fellow mates @ the prefered local kopitiam from 8-10.30am..>
go home & catch up the world's happenings on cnn,bbc,cnbc,bloomberg etc..> together with a light lunch & a rest probably set you back to 3pm..'mahjong'after that,a hbo movie/discovery/natgeo or surfing
the net get you to dinner time @ 7pm.....a hell better 'situation'than my father & grandfather's time,no doubt!!(they do not have the internet then!)
Great that you share your life with us.
I always wonder how would my retire life will be and how I want it to be. Until today, I still do not really can visualize it. So your comments & advice & experiences will be very meaningful to me, perhaps to the rest too. :)
Hi CD..
I am definitely in a better situation than my forefathers in this retirement thingie!...as I said,we have the internet & may I add in Astro too not forgetting the 2/3D gadget too.The fact that I am posting something now is testament to my expanding my daily routine content..getting into blog like yours & by posting, improves & hopefully sustain my mental faculty continuously(I need to think to type my thoughts & this beat 'mahjong' mental stimulation hands-down.
When the time comes for you to retire,I wonder what gadgets and technological advancements are there to 'satisfy' all your wants & needs then!!??
I'm also wondering. Hopefully it won't too advance from now so that I'm still able to catch up!
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