I admit when I heard of the word net worth in the past I only thought of celebrities. It wasn’t until an older cousin of mine asked me what my net worth was years ago that I was forced to sit down and figure out what my net worth was. Today’s video I’m sharing what the average net worth is according to Business Insider. I’m also sharing some encouraging words if your net worth is low, or has dropped we got this Heroes!
In the video above I start talking about net worth at the 4:34 mark.
What is net worth?
Your net worth is how much you’re worth financially. It is all of your assets or everything you own subtracted by your debt or everything you owe. The number you end up with is your net worth.
What are Fast ways to grow your net worth?
Increasing your income whether from a job or from a side business is one way to grow your net worth, that’s because if you have more money available you have more money to save and invest.
Paying Down your debt also increases your net worth. As I started getting serious about paying off my student loan debt I noticed that my net worth was increasing each month. I created a debt challenge where collectively 10 of us were able to pay off $39,000 of debt in just 11 weeks, learn more about our journey here.
Investing in stocks is another way to increase your net worth. If you’re not sure how to start investing a good friend of mine and previous financial advisor Kevin created a great course. The Investor’s Toolkit is a simple step-by-step investing process that shows you how to reduce your risk and grow your money over time. This course is $200 off until the end of April, just use the code invest at checkout. Learn more about the course here.
Investing in your jobs 401k if it’s available as well as opening up a ROTH IRA account.
Spending less money. If you can get into the habit of spending less and living below your means then using that money you saved towards your money goals your net worth will grow.
Once I started tracking my net worth each month my finances really started to change. It was really motivational for me each month to sit down and see where I stood. Tracking my net worth helped me see what money goals I should be focusing on.