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The Art of Manliness Continued JOBS for TEAMS | 14 www.jobsfor teams.com your wealth. You're just living lavishly. Those who focus only on net income as a measure of economic success are ignoring the most important measur- ing stick of financial independence. It's not how much you make, it's how much you keep." Before I read this, I understood the importance of saving money and liv- ing frugally, but I hadn't really thought of income and wealth as distinct concepts. Consequently, I was more focused on increasing my income as opposed to increasing my net worth. I had a paycheck mentality. After reading the above words of wisdom, and learning more about the best practices of personal finance, I started shifting to a net worth mental- ity. My primary goal now isn't just to make more money, but to keep more of it so I can create long-lasting assets and security for myself and my family. Below is a guide to help you make your own shift from a paycheck men- tality to a net worth mentality. The Benefits of a Net Worth Mentality The paycheck mentality is fragile; the net worth mentality is antifragile. Sure, life is great when you've got a steady income coming in. But what happens when that income stream dries up because you get laid off from your job? If you've been living paycheck to paycheck, you're going to find yourself in a real pinch. The paycheck mentality makes you fragile. Your financial security depends on your income, which is often some- thing you don't have complete control over, and can be taken away from you at any moment. A net worth mentality, on the other hand, makes your finances much more robust. You have resources beyond your weekly paycheck, so that if setbacks occur, you can bounce back. And if you save and invest wisely, you'll not only develop financial resilience, but financial antifragility; instead of merely getting by during times of stress, having money in the bank provides flexibility to take advan- tage of unforeseen opportunities or to pursue goals. Wealth grows even when you're not working. To increase your income you either have to 1) work more or 2) provide more value in some other way to your employer or client. Increasing your wealth, on the other hand, doesn't necessarily re- quire you to do either of those things. You can simply save more to increase your assets. And at a certain point in your wealth development, your money starts working for you instead of you having to work for it thanks to the power of compound interest. Your wealth will grow even when you're sleeping or on vacation. A two-pronged approach builds wealth faster. In the battle to become financially secure, con- centrating solely on increasing your income represents a one-dimensional and less effective strategy. In working to boost your net worth as well, you attack debt on two fronts, and build wealth faster. How to Calculate and Track Your Net Worth Calculating your net worth is easy.