Compare earnings, assets, debts and available cash using consistent periods and definitions.
Income is money received over a period, such as monthly pay or annual rent. Net worth is the value of assets minus liabilities at a particular date. A high salary does not automatically mean a high net worth.
Compare monthly with monthly, annual with annual, and gross with gross or net with net. If one figure is household income and another is individual income, the comparison needs adjustment. State the currency and date of any conversion.
Assets of 300,000 and liabilities of 180,000 give net worth of 120,000. A home can contribute to net worth while leaving little available cash. Liquidity describes how readily assets can meet an immediate bill.
Property valuations and investment prices can change. Selling costs and taxes may reduce usable proceeds. A budget should distinguish recurring income from one-off gains and avoid treating an uncertain asset value as guaranteed spending money.
English edition: 16 September 2026.