Net Worth = What you OWN-What you OWE Assets (What you OWN) • Cash (bank, mobile money) • Shares (MSE, global stocks) • Businesses • Land / Property • Pension / Investments • Vehicles (realistic resale value) Liabilities (What you OWE) • Loans (bank, SACCO, personal) • Mortgages • Credit/overdrafts • Unpaid obligations Example: • Assets = K150 million • Liabilities = K40 million Net Worth = K110 million Important Shift Most people think: “My salary = my wealth” Wrong. Your net worth is your real financial position. 2. UNDERSTANDING CASHFLOW FROM ASSETS Not all assets create wealth. The real question is: Does this asset PAY YOU or COST YOU? Cashflow Assets (GOOD) These put money in your pocket monthly: • Rental property • Dividend-paying shares (NBS, NBM, FDH etc.) • Businesses • Treasury Bills / Bonds Example: • Shares paying dividends • Rent collected monthly These build freedom. Consumption Assets (WEAK) These take money from you: • Personal house (no rent) • Cars • Lifestyle items T...