How to Increase Your Net Worth

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How to Increase Your Net Worth. Learn some easy ways that you can do to increase your net worth. Read on to find out how.

How to Increase Your Net Worth

What is Net Worth

Your net worth is an important factor to your financial health, it is the value of your assets minus your liabilities. You should know what your net worth is and keep track of it so you can make strategic financial moves to increase your numbers.

Your Net Worth

Net worth is calculated by totaling all your assets such as the value of your home, investments, savings and then subtracting all your liabilities like your mortgage, loans, debt and so on.

Your net worth is basically your total overall financial picture. Having a positive net worth is crucial in your overall finances. You should always be considering how the financial decisions you make will impact your net worth.  

How to Calculate Your Net Worth.

Calculating Your Net Worth

Make a list of all your assets and the value of the assets. This would include the value of your home and any other properties you might own, all you savings, including savings, retirement and investment accounts. Also include the value of your cars, recreational vehicles  and collections that you might have that are worth money.

Now make a list of all your liabilities. This would include the balance on your mortgage, any other loans you may have, credit card debt, medical bills and so on.

Subtract your total liabilities from your total assets to calculate your net worth.  Hopefully this is not a negative number, if it is, this means that you owe more than the value of what you own and you should really start working on turning this around.

If you have a positive net worth, great! This means that you are on the right track. You should still do what it takes to grow this number and grow your net worth.

Free Net Worth worksheet download

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How to Increase Your Net Worth

There are basically only two ways to increase your net worth. You either need to reduce your liabilities or increase the value of your assets. It’s a pretty simple formula, but is easier said than done. It will take some work on your part but the end result is worth it.

Reduce Liabilities

Your liabilities are basically your debts by reducing your debt, you increase you intern increase your net worth. So make paying off your debt a priority. Here are some ways that you could use to help reduce your debt.

Increase your income

  • Ask for a raise at work
  • Search for a better paying job
  • Take on a side hustle to bring in extra money
  • Sell your stuff to earn extra money

Cut Your Expenses

  • Reduce your grocery budget by meal planning
  • Cut back on services to save on monthly expenses
  • Bundle insurance to save on premiums
  • Reduce your monthly energy consumption

Do whatever you need to do to get your debt paid off and you will see your net worth start to grow.

Increase Assets

Increasing the value of your assets is another way that you can increase your net worth. So the more you can increase the value of assets you will intern increase your net worth.

Here are some ways you can increase the value of your assets. Keep in mind that taking on the same value of debt to increase your assets is not going to increase your net worth.

I would only encourage you to do this if you are totally confident that your initial investment will increase in value in the short term.

Ways to Increase Your Assets

  • Contribute the max into your 401K to get the most out of your employer’s match
  • Increase the value of your property with some home improvement
  • Add more to the amount of money you are saving monthly
  • Invest in income generating assets such as stocks
  • Increase the value of collections/antiques etc with smart buying decisions

Remember to always keep your net worth in mind when making any kind of financial decisions and you will be sure to improve it.

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Download your free Net Worth Worksheet.

Free Net Worth worksheet download

Net_worth_thumbnail

Get your free worksheet to help you calculate your Net Worth

Powered by ConvertKit

2 Comments


  1. //

    Net Worth and Cashflow really should be two key metrics that people track to monitor their financial fitness. It always amazes me how few people really pay any attention to either of these.
    Financial Coach Brad recently posted…How to eat a half million dollarsMy Profile


    1. //

      Your are so right Brad. Anyone looking at improving their finances should really learn how to calculate and track this important information.

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