Part 8/11:
Another critical concern is the binary language used in discussions about net worth. Many of these videos highlight net worth growth without considering the complete financial picture that includes liabilities. It is essential to recognize that net worth is derived from the total of assets minus liabilities. An investment portfolio might look promising, but when debt—like credit card balances or mortgages—is factored in, the narrative shifts dramatically.
Furthermore, the conversations surrounding “interest earned” can often blur the lines between investment growth and cash flow. Stocks do not generate interest in the same way that savings accounts or bonds do, and many new investors may conflate these concepts due to misleading marketing.