What Is Income
Income is the money you earn over a period, usually from work, investments, or business activity. It is a flow concept measured monthly or annually. High income does not automatically mean high wealth, because spending and debt affect what you keep.
What Is Net Worth
Net worth is the value of everything you own minus everything you owe. It is a snapshot of your financial position at a specific date. Assets include savings, investments, and property; liabilities include loans and credit card balances. A person can have high income but low or even negative net worth if debt exceeds assets.
What Is Wealth
Wealth is the accumulation of valuable resources and assets over time. It is closely related to net worth but often refers to long-term financial security and the ability to sustain your lifestyle without relying on active income. Building wealth usually requires consistent saving, investing, and managing debt.
For more details on how these concepts are measured, see the Britannica entry on wealth and income.
