Your cash flow says you can afford it. Your net worth might disagree. A framework for telling the two apart — with a story about two people who started in exactly the same place and ended up nowhere close.
Chapters
- 0:00 Can You Really Afford the Monthly Payment?
- 0:35 How Net Worth Changes the Affordability Question
- 1:40 How to Calculate Your Net Worth
- 2:37 Why Net Worth Is Not Your Self-Worth
- 3:10 Income vs. Wealth Explained
- 4:01 How Credit and Monthly Payments Affect Net Worth
- 5:30 Same Income, Different Spending Decisions
- 6:41 How Purchases Change Your Net Worth
- 7:03 Job Loss, Debt, and Financial Resilience
- 7:34 Why Monthly Budgets Miss Future Obligations
- 8:16 Using Net Worth to Make Better Financial Decisions
- 8:49 Rethinking the Emergency Fund Rule
