Your Net Worth Is Not Your Self-Worth

Let me stay that again….. Your Net Worth Is Not Your Self-Worth!

It’s easy to get caught up in the numbers – watching your bank balance grow (or shrink), keeping an eye on your property value, and tracking investments. But here’s something we all need to remember: your net worth is not your self-worth.

Don’t Tie Your Identity to the Numbers

I often see people make the mistake (and yes, it’s no secret that I have been guilty of this myself!!) of measuring success or value by how much we have. Whether it’s hitting a certain financial milestone, owning a home, or paying off debt, we can start to feel like our worth as a person is tied to those numbers. The truth is, your self-worth is far more than your financial standing.

Yes, tracking your net worth can be a great motivator to reach your goals- and I encourage it with my clients- but it’s just a reflection of where you are financially at a point in time – not who you are.

Things Change, and That’s Okay

Your financial situation will change over time. You might experience setbacks – losing a job, a bad investment, or life events (like my divorce!!) that shift your circumstances. These things are normal. In fact, sometimes things have to go backwards before they move forwards. Think of it like a slingshot: you pull back before you shoot forward. Life can be the same – what feels like a setback might actually be setting you up for a leap ahead.

Track, Don’t Obsess

Tracking your net worth is important – it gives you a clear picture of where you stand and helps you plan for the future. But don’t let it consume you. It’s easy to get caught up in watching your net worth fluctuate, especially when the market takes a hit or when your savings dip. What’s important is to remember that these are just numbers. They don’t define your value or the person you are. 

Separate the Two

While net worth can motivate you, it’s crucial to keep it separate from your self-worth. You are not your income, your bank balance, or your property portfolio. Your worth comes from who you are – your relationships, your kindness, your creativity, and your passions. Net worth can go up and down, but it’s your self-worth that keeps you steady through the ups and downs of life.

Embrace the Journey

Building wealth is a long-term game. There will be good months and not-so-great months. But by staying focused on your goals and remembering that your self-worth isn’t tied to your finances, you can embrace the journey without letting the numbers dictate how you feel about yourself.

In the end, tracking your net worth is about building financial security, but understanding your self-worth is about building confidence and resilience.

Bottom line: Track your net worth, but don’t confuse it with your self-worth. They are two very different things.

TIP: Avoid falling into an unhealthy habit, set a timeframe for tracking your net worth —monthly, quarterly, or annually whatever works for you—and stick to it to avoid obsessing over short-term changes.

Need help creating some healthy money habits? We can help!