Wealth is how much you accumulate. Net worth is your balance sheet—the net of your assets less your liabilities. Income is what you bring in over a period of time, and you report it on your annual income tax return. Periodic income certainly affects your net worth (balance sheet), but doesn’t define true wealth.
Consider an individual who makes $1 million in wages in a year and spends $1.2 million in consumption during that same year. The wealth (balance sheet) impact would be negative $200,000.
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