What is net worth? It is taking your assets (furniture, equipment, property), subtracting your liabilities (credit card debt, loans) and then knowing how much is left over. Hopefully you have something left over; otherwise, you are upside down! True wealth is not the “things” you spend your money on, but the leftover amount after you pay what you owe.
Figuring out your net worth is important if you want to know your current financial position. Net worth is a simple calculation. Ever hear of that old saying, “Numbers do not lie”? Well, you could be driving the latest car, living in the largest home and still have a low or negative net worth.
Here are ways to increase your net worth:
- Do not overspend! Reduce or even eliminate unnecessary expenditures.
- Save. The earlier you start, the more you will accumulate over time.
- Manage your assets (retirement accounts, investments) to get the best rate of return.
These are easy to write and easy to say, but results are seen with consistency and determination.
Stop “flying by the seat of your pants.” When you “wing it,” you are reactive to whatever happens. Let me encourage you to be proactive and increase your net worth!
