Whiteboard Series: Episode 9 – The Most Important Number in Personal Finance

People tend to associate financial success with income, the size of a portfolio or overall investment performance.  While these numbers are meaningful components of comprehensive financial strategies, they don’t completely capture the true state of one’s personal finances.  People are better off focusing on the most important number in personal finance – your net worth!  Tracking this simple number (assets less liabilities) and growing it annually is the most significant measurement of financial progress.  Net worth is unique to each individual and their goals and objectives, but its concept and importance is universal in terms of meeting important goals and objectives. 


The Whiteboard Series is a continuous exploration and discussion across a wide range of personal finance topics. Through a series of drawings, interviews and explanations, we hope to educate and simplify important financial planning principles.