Are you focused on your net worth or your income and expenses? If you are focused on income producing assets, your net worth will take care of itself if you also keep an eye on expenses. Your plan is to develop assets that provide income; to leverage any debt to increase your income producing assets; to maintain control over your expenses so you can build these income-producing assets. Your plan is not to build a net worth that needs to be supported by your income. Your plan is not to focus on the difference between your income and expenses. Your plan is to build a net worth that produces ongoing income.

Why? Increasing your income will increase your net worth, which will increase your income, which will increase your net worth, etc. Income and net worth are connected and if you miss this connection, then there will be a disconnect between current spending and overall financial well-being and between accumulated assets, net worth and day-to-day living.