Many people measure financial success by looking at annual income, but this isn’t always an accurate indicator. Instead, focus on net worth to assess financial well-being, which is calculated by subtracting total debt from the total value of assets. Increasing net worth involves paying off debt, saving, and investing wisely. While a high income is desirable, a high net worth is ultimately more important for financial stability and retirement. Lifestyle inflation can lead to negative net worth if spending increases with income. Ultimately, financial independence can be achieved through a high net worth or passive income sources.

Read more at Yahoo Finance: What’s the difference, and which one is more important?