Learn how to measure Wealth and start building it with intention
Everyone’s talking about “building wealth.” I even wrote a previous post called "Understanding, Managing, and Growing Your Wealth: A Guide for Every Stage of Life" where I explored the broader concept and how it evolves through different phases. But today, let’s take a more hands-on approach: How do you actually calculate your own wealth? And how do you track it so you can make the right decisions toward your goals?
Have you ever stopped to ask: What even is wealth? Is it about income? Savings? Owning a home? Driving a fancy car?
Most people confuse being rich with being wealthy. But wealth is not about how much you earn—it’s about what you keep, what works for you when you’re not working, and how long you could sustain your life if your income stopped tomorrow.
In this post, I’ll break down what real wealth looks like, how to calculate it using a practical method, how to read and interpret that information, and what steps you can take to start building it. Plus, I’ll give you my free Wealth Calculation Template so you can figure out your own number (find it at the end of this post).
What is Wealth, exactly?
Wealth is the number of days you can maintain your current lifestyle without working. That’s the definition used by Robert T. Kiyosaki in Rich Dad Poor Dad, a book I highly recommend. It might be controversial depending on your background, but it’s eye-opening and invites you to look at finances from a completely different perspective, even if you don’t agree with every part. Personally, I’ve found that any idea that makes me feel slightly uncomfortable or challenges my current beliefs is worth sitting with. Even if it doesn’t change my mind at all or completely, it often expands it. And to me, that’s growth. This book did that for me, which is why I believe it’s worth reading.
Using that definition, wealth is not just a number in your bank account. It’s about freedom, time, and control over your life.
What Makes Up Your Wealth?
Wealth includes more than just savings. To get the full picture, you need to consider:
➡️ Your Net Worth (Assets - Liabilities), which includes:
Assets such as Real Estate, Savings, Investments, and others
Liabilities as Mortgages, Student loans or other kinds of loans, Credit Cards, and other debt
➡️ The strength of your Cash Flow (monthly money left after all expenses) that considers:
Your Income Sources (especially Passive ones)
Your monthly Expenses
When you combine all that, you get a sense of how financially secure you really are.
Why You Need More than One Source of Income
Depending on one single job is risky: if you lose it, everything stops. That’s why building several income streams is crucial: dual income family, part-time freelancing, digital products, investing, rental income, dividends… There’s no one-size-fits-all so you need to find your best solution/s, but diversifying is the key.
As we often say at home: being 'salary-rich' just means you’re one layoff letter away from being broke. Harsh, I know—but a necessary reminder. That’s exactly why it’s so important to have back-up plans and build income that doesn’t depend on clocking in every morning.
The dream? That your Passive Income covers your basic expenses. That’s the moment you reach Financial Freedom—when work becomes a choice, not a need.
The importance of Cash Flow
(and how Ego can ruin it)
Cash Flow = Income - Expenses. If it’s negative, your financial health is bleeding, and you need to act fast.
Morgan Housel, in The Psychology of Money, nailed it: Savings = Income - Ego. If you’re earning more but constantly upgrading your lifestyle, you’re not saving; you’re just spending with more zeros. And not to mention, if you're living on credit and spending more than you actually have, that's a recipe for disaster.
A positive Cash Flow is your ticket to investing, building assets, and eventually becoming truly wealthy.
Your next step:
Invest in Productive Assets
Once you’ve:
Ensured your Cash Flow is positive
Built an Emergency Fund
Paid off high-interest debt
Then it’s time to put your surplus to work! Don’t let your money sit passively. Invest in assets that generate value over time: index funds, real estate, your own business, or tools that grow your income potential. This is how you’ll build wealth over time and have your money working for you instead of you always working for your money.
Set your Financial Goals & Track Your Wealth
If you want to know what you’re doing and have some direction in life, you need to set your Goals and Ambitions. Then, it’s crucial to know where you stand right now, so that you can create a Plan that will lead you from today to your desired outcome.
I’m sharing with you my Wealth Calculation Template below to make all of this easier and actionable. It’s pretty complete and it helps you:
Understand your Cash Flow
Determine your Net Worth
Monitor the weight of Passive Income over your total Income
Calculate the Return of your Assets
Keeping track of this periodically (I recommend at least quarterly) gives you clarity and helps you stay on track with your goals.
This file also includes an image with the different Financial Flows that you can find in the book Rich Dad, Poor Dad. Each of them explains the most common financial patterns that represent Poor people, Middle-Class people, and Wealthy People. Of course this is a simplification but can help pointing you in your best direction.
Wealth is not a mystery: it’s a formula, a mindset, and a set of actions you can take.
Start by knowing where you are: use the template, get clear, and take small steps that add up.
Wealth isn’t just for the few. And this isn’t about becoming ultra-rich or adopting an all-or-nothing mindset either. It’s about moving toward a more secure, comfortable, and intentional life; whatever that looks like for you.
1️⃣ First, get clear on where you are.
2️⃣ Then, define where you want to go.
➡️ One decision at a time. That’s how you take ownership of your future.
Download my free Wealth Calculation Template here and find out where you stand. If you have any questions, feel free to email me at coach@martafores.com. I'll be happy to hear about your journey and dissipate doubts!
And if you’re feeling stuck or unsure about how to move forward financially because of limiting beliefs, a scarcity mindset, or patterns learned in childhood; Coaching can help you get unstuck and move forward with clarity. Feel free to book a free exploring session with me to learn more about how Coaching might support you.
If you’re stuck because you lack Financial knowledge, it is important to read and learn about it. Because whether we like it or not, money and finances are a necessary tool to survive in today’s world and not managing them well can lead to a lot of problems and frustration.
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