Net worth is essentially all of the money that one has at their disposal, calculated by adding all of one’s assets and subtracting all of their debt. While having a good understanding of personal finances will likely see one’s net worth in the positive, there are five simple ways to quickly and easily boost their net worth.
An individuals’ net worth may not mean much in daily conversation, but creating a wealthy life and luxurious retirement cannot be done without building a solid net worth first.
Prominent business moguls like Elon Musk and Jeff Bezos, as well as investment tycoons like Peter Jones and Warren Buffett all have one thing in common: net worth bought them stardom.
In the modern era, fame is often interlinked with income, as one increases so does the other, provided that one has a disciplined approach to money in that the don’t end up spending more than they have.
Alongside this, building a large enough net worth can gain incredible notoriety for individuals that otherwise may not have achieved it, like the youngest Dragon on BBC’s hit show Dragons’ Den Steven Bartlett who earned his net worth through being an entrepreneur.
With all the positives that a large net worth can bring, many ordinary people don’t pay their own net worth much mind, which is one of the first reasons why they rarely achieve it.
By focusing on trying to build a net worth, and understanding that it takes good practice, money management skills and will not happen overnight, one can greatly increase not just their standard of living but their opportunities, connections and potential.
Step one – Property
Real estate is a great asset to have regardless of one’s financial goals, and making one’s first purchase in the right location can see them set for life.
Many people own a home later in life with the intention of living out the rest of their days within its confines, but little do they know they increase their net worth with every passing month.
Taking on a mortgage does in essence mean taking on debt, however, paying off a mortgage slowly sees one’s net worth increase.
Alongside this, real estate tends to rise in value over time, although this is not always a guarantee.
So, as one’s home gets more valuable, their net worth increases as well as it’s an asset far more valuable than their mortgage debt.
Step two – Sell a business
Owning a business can add as much value to one’…….