“…net worth does not equal self worth.” – Vicki Robin
Vicki Robin wrote this quote in her financial independence book, Your Money or Your Life*. Vicki Robin encourages the reader to create a balance sheet for the first time and calculate their net worth. I definitely advocate for calculating your net worth regularly and on a recurring basis. Knowing your net worth is very valuable and is the first step in understanding one’s financial health. However, it’s important to understand that financial net worth is very different from self-worth.
Many of you when you calculate your net worth for the first time, will have a negative number as a result. In this case, your debts and other liabilities are larger than your assets. This happens to many people, especially if you’ve spent a large period of time not paying attention to the details of your finances. Yet, this is simply a starting point. A low or negative net worth should be a wake-up call that you use to lead you to take positive action in your life. Don’t let past mistakes influence your future as well. That’s the key point which Vicki Robin is trying to make.
Self-Worth: You are more than a number
Your value is not defined by your net worth. The value of a person cannot be defined by how much money they make or have. In addition, a person’s self-worth isn’t even defined by how much money they give away to charity. Only you can define for yourself your worth in life. Therefore, I encourage you to value yourself much more highly than the material things or symbols you can accumulate.
Financial net worth is simply a number. A GPS coordinate on a financial map to let you know where you are today. It’s vital to know where you are today so that you can get where you want to be. While I encourage you to know your net worth and use it for your benefit; don’t let that number define you. It’s merely a tool to help you be successful.
If you’d like to learn more about how to analyze your finances alongside your life goals, consider buying Vicki Robin’s book: Your Money or Your Life*. This quote is just one of many wise insights that she provides on improving your happiness and achieving financial independence.
*Disclosure: Some of the links on this page are affiliate links. If you make a purchase through one of these links, I may earn a small commission. This commission comes at no additional cost to you. Please do not spend any money on this book unless you feel that it will help you achieve your goals.