Net Worth Or Cash Flow

There are instances in which one will wonder whether cash flow or net worth is better. My take is that net worth is better. This is due to the accumulation of the net worth which can be channelled into the investment portfolio which will generate dividends (i.e known as cash flow as per my perspective) on a continuous basis. It will take a significant amount of time to accumulate the sizeable networth.  It may take a few years or a decade or a few decade to achieve such milestone. It does not matter as per my perspective. As long as there is an increase in the monthly net worth, the result is achieved.

One can get the free time to do the things of his/her interest. The expenses will be taken care by the passive income generated by the investment portfolio.

The above assessment is my view and there is no right or wrong answer. One will know his/her preference and make the decision which one will perceive to be appropriate for him/her.


Author: firewtk

A middle-age Singaporean currently having a minimalist and simple lifestyle. I am not longer in full-time employment with effect from 1 May 2019. I try my very best to write one post per day on this blog. The purpose is to share my prevailing thoughts to interested readers. It is up to the interested readers to decide whether they want to take action in embarking on the FIRE journey. I do not gain anything from this blog and it is solely for sharing hopefully for the benefits of all interested reader. WTK

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.