It is always good to know where you are before you consider making any route corrections. This applies as much to your financial journey as it does to any road trip that you may take. The one number that best describes your financial situation after considering your income, expenses, assets and liabilities is your net worth.
Taken in isolation, each of these will just tell you a part of the story. A high income does not translate into a strong financial position if expenses are high and therefore savings and investments are low.
Similarly, a large asset base that is largely funded by debt may be a stress on income rather than providing stability to your financial situation. The net worth will tell you where you stand and what corrective steps you need to take to get your finances back on track.
