Net worth measures value, but it can hide how difficult that value is to use. Home equity may be substantial, yet paying bills from it generally requires selling or borrowing. Retirement accounts can hold years of spending while age, taxes, and access rules affect when the money is practical to use. Taxable investments are easier to reach, but their value moves and sales may create taxes.

A workable financial independence plan connects each asset to actual expenses and timing. It distinguishes practical near-term cash from accessible investments, accounts with restrictions, and property that requires a transaction or financing. It also allows for the possibility that markets fall when withdrawals begin.

The relevant question is not only whether your balance sheet reaches a target. It is whether the assets on it can fund your life without forcing a bad sale, an expensive loan, or a change of plans at the wrong time.