I recently heard a factoid that the traditional English way to measure net worth is actually based on Cash Flow:
Ie- I have a net worth of 20K pounds per year (meaning my assets shoot of 20K pounds per year).
This makes much more sense to me than just assets-liabilities, since we live off of cash flow and not assets. But maybe I like it because I’m into real estate and not publicly traded equities.
Either way, when I started to think of net worth this way, it made it easier for me to scale back on my career.
Do others think this way?