Building Your Money Machine The Real Number That Predicts Your Wealth (It's Not Your Net Worth)
Welcome to another thought-provoking episode of the Building Your Money Machine Show. In this episode, I’m tackling one of the biggest misconceptions in personal finance: that net worth is the best predictor of wealth and financial freedom. Spoiler alert—it isn’t. I’m breaking down why net worth alone is an incomplete metric, why so many people with high net worth still feel financially stressed, and, most importantly, the real number you need to focus on to create the life and freedom you truly desire.
Through my decades as a CPA, entrepreneur, and money mentor, I’ve watched people chase ever-higher net worths, only to stay stuck on the financial hamster wheel. I’ve seen individuals who look wealthy on paper but feel just one bad month away from panic, while others with far less accumulated “net worth” live calm, and confident lives. The difference? It’s all in what your money can actually do for you.
I’ll introduce you to key ratios and calculations that show exactly how close your assets are to buying your freedom—starting with your “cash flow coverage ratio.”
IN TODAY’S EPISODE, I DISCUSS:
- Why US household net worth is at an all-time high, but financial stress is everywhere
- The dangerous illusion of traditional net worth
- The assets you must exclude when planning for lifestyle support
- Why the “cash flow coverage ratio” is the true metric for financial freedom
- How to assess which of your assets are “teammates” supporting your life
- My three-bucket system for structuring your money
- Step-by-step action plan
RECOMMENDED EPISODES FOR YOU
If you liked this episode, click here to enjoy these and more:
https://melabraham.com/show/
- 9 Subtle Behaviors That Quietly Signal You're Upper Class
- The Psychology of People Who Have $1M Net Worth
- The Silent Rules of the Financial System That Keep You Poor
- 7 Assets Rich People Never Buy And The Poor Always Do
- How Much Money Do You Actually Need to Be Rich in 2026
RECOMMENDED VIDEOS FOR YOU
If you liked this video, you'll love these ones:
- 9 Subtle Behaviors That Quietly Signal You're Upper Class: https://youtu.be/dbdUDwElYY0
- The Psychology of People Who Have $1M Net Worth: https://youtu.be/-65r-OsaHME
- The Silent Rules of the Financial System That Keep You Poor: https://youtu.be/akr5474dwps
- 7 Assets Rich People Never Buy And The Poor Always Do: https://youtu.be/A9f-IgNKU8w
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