Why CASH FLOW is more Important than NET WORTH in achieving Financial Freedom?

A number of digits are added together to determine a person's financial situation. These include her income and the value of the assets she possesses. However, not all numbers should be used to gauge her financial security. For instance, a person who strives for good health can estimate the amount of activity at which he can engage while still needing oxygen to survive. No matter how healthy he is, he cannot exist without enough oxygen. So, which has more influence-his ability to engage at all or his ability to engage at a certain level? Similar to oxygen, your net worth in the financial world gives you a picture of your financial health, but only your cash flows can foretell the future.
Cash stabilises the situation because net worth, which is not liquid, can lead to a "all-or-nothing" scenario. A individual with a larger cash flow and a lower net worth is safer in this scenario.
Your wealth's value has changed over time, and it won't be the same tomorrow as it is today. Your net worth is continually fluctuating due to changes in the financial markets or the overall economy.
Contrarily, cash flow is observable and more trustworthy than net wealth. More than the value entailed in your possessions, the money you produce on a regular basis is the value that retains the capacity to purchase.
Large net worth does give you financial confidence, but just as markets can fall and stocks can lose a significant amount of value overnight, it is risky to have excessive confidence in your estimated net worth.
The ability to generate more passive income if desired is the largest advantage of having a high net worth. The secret is to invest more in assets that have high cash flow rather than in capital that is idle and doesn't produce any revenue. Your wealth grows and multiplies while you keep yourself occupied with the process of earning money.
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Knowledge Gaining Videos Sir...

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God bless you always, Singh Sahib.

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Sir Namaste good knowledge gaining information for whose thinking about investment in networth keeping mind in future. As per your information we should think about cash flow not for networth. Thank you very much

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