How to Grow your Net Worth

The best way to measure your financial success is how much money you have, it’s the amount of money you have that will tell a great deal about you. No wonder people judge each other based on the bank accounts. It’s not how sophisticated your financial plan is, or what your credit score, it’s your net worth, it’s all you are worth, your house, your car, your investments and your money applications. It’s simply a calculation of everything you own minus everything you owe, it’s how much money you have! Here are some great methods that you too can increase your net worth more so than you already are.

Pay off Debt. When you have high interest debt such as credit cards and payday loans, it really begins to hurt you. Interest really kills people and people money too. You might only be making a low easy payment, but over time you can end up paying several times what the cost of the purchase was. No wonder that a house sometimes is 3 times more expensive than the initial purchase value because of the interest. Your high interest debts are eating away at your net worth increases every month, so begin to pay them off today! The faster you pay all those debts, the faster you will be on your way to millionaire

Cut Down on Expenses. This doesn’t mean that you shouldn’t spend any money not even close, just cut down on expenses which give you little value or depreciate over time rather quickly. This means cutting down on fast food, a bunch of clothes that you rarely ware, and expensive vehicles that you can’t afford. Cars quickly lower their value over the time and computer the same. Instead just invest that money on something that will give you better returns.

Be Smart With Savings. For your basic savings account, make sure it’s not sitting in some major bank’s standard savings account which earns less than 1% APY. Be sure to keep your savings in a high yield savings account at a place such as ING Direct or HSBC Direct to get a decent rate on your savings account. If you are man enough try investing online with E-Gold. This way you can make up to 5% per Day! That’s a lot of money per month and per year.

Maximize Retirement Plans. If you get a match from your company’s 401K or other retirement plan, you’d be crazy not to take it. It’s essentially free money. In addition you should max out your tax sheltered retirement accounts such as a Roth IRA. You can invest up into $4000 in one of those and never pay a dime in taxes in it! Check on Google or any other search engine to see how it all works, you will be surprised!

Start Paying in Cash. When you pay with cash, quite often you can get a discount for doing so because the store won’t have to pay any transaction fees for your purchase. When you wave money in front of people and use great negotiating techniques, you can often get a great deal! Or you can pay in cash for more expensive products. Since you save on the transactions you can afford more!