Self-worth is the intrinsic belief in our own value that stands apart from external achievements or validation. It’s unconditional and stable. The dangers of anchoring our self-worth to our net worth are real, and the risks are significant because money is variable.
During the tax year, we sift through our income, expenditures, and investments, and sometimes the results can be disappointing. Yet, this process can serve as a valuable mirror, reflecting the origins of our financial challenges. However, our financial outcomes do not define our value. While numbers don’t lie, life is a series of cycles, growth, and loss that often overlook the external factors at play.
Money is forever changing, and therefore it is impossible to tie it to any part of our self-worth. Who we are as people is the one constant in the sea of fluctuating finances. We shouldn’t allow ourselves to be dragged down by those changing tides.
The balance sheet isn’t a crystal ball for our future earnings or potential, it’s a losing game if we let it dictate our self-worth. Money is always changing, and things aren’t going to go up forever, no matter how financially savvy we think we are. At some point, conditions in the investment environment will disappoint us. History rhymes but doesn’t necessarily repeat itself, we are not in the same financial position we were in last year, nor will we be in the same position next year. However, familiar themes do recur, especially when it comes to how we perceive ourselves during tough times. What I tell my investors is that patience can be our greatest advantage, often leading to success in the long run. How we see ourselves is the true currency of value, so let’s not sabotage ourselves by over-indexing on our net worth.
The upward spiral of our net worth, at its peak, can feel unstoppable and can boost our confidence, including our self-worth. However, it’s crucial to remember that this feeling is temporary.
So, let’s step out of our money shadows because within every shadow is a message. The shadow is blocking the light and is not a part of who we truly are. We might be carrying narratives that no longer serve us. Shifting the focus from what we have to who we are will help us remove ourselves from our financial equation, allowing us to view our self-worth as a separate entity. Building wealth should not haunt us, it is a journey of growth, trial, and failure. Start viewing your life through this new lens, because our self-worth isn’t our net worth.
Sarah Stephen is a Luxury Real Estate Advisor advocating for women’s financial freedom.
