The problem with throwing the home in there, and in looking at "net worth" -vs- "net income" is that things like your house don't generate income. Having a mil

The problem with throwing the home in there, and in looking at "net worth" -vs- "net income" is that things like your house don't generate income. Having a million dollar house and $50/month leftover to spend on fun puts you in the same position on a day to day basis as the guy who, after rent and bills, has $50/month leftover to spend on fun. I mean it puts you in the same place in terms of "I'm rich, I can do whatever I want" - neither of you have f-you money. Neither can just go do whatever they want. Guy who owns the house has more equity he can borrow against if he has to... he also has to take care of that house. Renting guy renting -but he's mobile, and can pass a lot of expenses on to others. He can just cut his living expenses by a bunch and live in a cheaper place if he needs more income.