The Monday Money Brief

February 16, 2026

Net Worth-Just a Number, or a Strategy?

Throughout our life, we are all chasing numbers.

A number on the scale, a grade on a test, a sales metric, a bonus percentage, a raise, the balance in a checking account, and in terms of personal finance; our net worth.  This measurement appears to be everywhere, and people are obsessed with the net worth of others. Perform a quick Google search on net worth and you’ll see tons of data, including the average net worth by age.  We are quick to open the image and see where we rank vs. the rest of the world.

Is a number really that important?

In our personal finances, we are led to believe that we should strive towards a magic number for our net worth.  But what exactly is net worth?  The technical definition is all your assets minus your liabilities, but does that really look forward…or does it look backwards?  I see it is a snapshot in time.  It shows that as of right now, here is where you are.  I relate this to any type of assessment test.  The aim is to test your knowledge on a certain topic right now.  What do you know, and where do you need to improve?  From there, an informed decision can be made to determine where you need to focus.

In my opinion, net worth is a lagging indicator.  It shows where we were, not where we are going.  To me, the more important measurement is our direction.  Are we headed in the right direction and do we have a strategy?  This is being proactive, instead of reactive.

Direction Matters

I write a lot about the importance of a money map.  It shows all your incomes and all your expenses in a visual image, so you can easily follow the money.  It provides a map.  Here is the lay of the land.  To make improvements, or to move in a particular direction, you can now see where you need to go.  I am here now and want to go to another location.  What is the fastest way to get there?

What is in front of me and what could be a barrier to getting to where I want to go?  Without a map, or a GPS in today’s world, we can’t see what is in front of us and take a big risk in being surprised, typically not in a good way.

This is why I emphasize the importance of direction when it comes to net worth.  Sure, the actual number itself is meaningful, but it is not everything.  It is a snapshot of current state.  What do I own today and what do I owe today?  To me, the more important focus is, “Am I on the right trajectory?”  To determine this, the focus needs to be on the trend of your net worth.  To get that trend, we need to have data points, so measuring net worth does have value.  We need to capture that number and then track it over the course of our life.  The value in our 20s is much lower than it is in our 50s…at least for most people.  To utilize this trending information, you need to start tracking.  The sooner the better.  If you don’t have any data to trend, then it is difficult to see if you are on a good trajectory.

Growth Example

Early on in my career, I had no idea about net worth and tracking it certainly wasn’t even on my radar.  I was too busy focusing on career growth and learning how to raise children, purchase a home, and just “adult,” as they call it.  Flash forward to 2013.  This is when I woke up.  My mother came across a windfall, and I had to learn quickly how to make the right financial decisions so she wouldn’t lose it all.

Luckily, I had a lifelong friend that guided me in the right direction and introduced me to the world of finance.  I spent time learning and asking thousands of questions.  I downloaded a financial app and started consuming anything and everything about personal finance.  This is when I realized the importance of topics, such as net worth.  So, I started tracking my number.

As most others, my number was small when I started.  I wasn’t consistently checking in and lost track.  This happens.  Seeing a small number for your net worth is like seeing a big number for your debt; it drains you.  Regardless, I kept showing up and celebrated small wins.  This was key for me becoming consistent.  A little momentum goes a long way.  Tracking became normal, and then a habit.  Now with apps, tracking net worth is automatic and doesn’t require any effort.  However, it does take effort to review that number, and more importantly, watch the trend.  If you see that you are going in the wrong direction, pause and assess.  If you wait too long, the value will continue in that negative trend and will be harder to stop.

Numbers don’t lie.  People do.  Stop lying to yourself and take control of your finances.

Keep navigating your financial future!