This “ Common Sense Tips To Increase Net Worth “ describes tips that one can employ in order to increase their net worth. These tips are mostly simple that can or will help people achieve their goals of security and financial freedom. The post is contributed by Meghan Belnap. This post contains affiliate links/ads. See disclosure policy.
America is deep in a $19 trillion debt, but that does not mean you have to find yourself in your own financial hole. It can be a daunting task to save for the future when financial responsibilities press upon your every paycheck. According to a 2016 Washington Post article, 71 percent of Americans say they do not have enough savings for retirement and more than half of those surveyed believe they will not ever pay off their debts fully.
While this statistics can be scary or is really scary, this does not mean that you have to be in that statistics. If you look at your surroundings, you will see that there are a lot of people who went from having a ton of debt to having thousands of dollars in their bank accounts.
Take Allan Liwanag, the owner of this blog, for example. He used to be indebted to the tune of 70K. But he and his wife found ways to pay that debt, came out of this bad financial situation, and saved at least $50 in less than 3 years. They were able to become debt-free even when Allan was the only one working in his family.
The point is, there is always an opportunity to better your financial situation even when you think that there’s no way to do that. One thing I want to say is that even when a lot of people around you tell you that you can’t make out of the financial hole, don’t be discouraged and believe in what they say. They are just distractions and not solutions.
Increase Net Worth with These 5 Tips
As you live your life day to day, you should have two goals in mind as your driving financial force: security and freedom. As much as people want to achieve both of those, the reality is that not all will ever attain security and freedom. But this fact shouldn’t deter you from reaching both security and freedom.
In order to acquire both goals, your assets (e.g. 401K retirement plan, savings, checking account, and property) should outweigh your liabilities (e.g. debt, mortgage, car payments, and loans). But the next question is: how you will increase your asset and reduce your liabilities?
Here are some suggestions to increase your net worth and achieve financial security and freedom.
Use Cash Over Credit
The convenience of technology makes it easy to use your debit or credit card for daily expenses like coffee and lunch. To manage this, set an amount of cash you’re willing to spend on these regular purchases and keep it within that limit.
Not only does this give you a sense of restraint when spending but it reminds you of the value of each dollar with something tangible. Cards can be deceptive and cause you to disconnect from the amount you’re spending. Try to use cash for all purchases under $20 and leave the bigger expenses for your card.
Read more at 10+ Cash Back Sites To Earn You Money While You Shop
Live Within Your Means
With television, social media and ads, it’s impossible to ignore reminders of what you’re missing out on because you haven’t purchased a product or paid for an experience. And while the temptation may be there, this extra spending shouldn’t appeal to you more than covering your rent, food and transportation costs.
Before committing to a purchase, you should consider whether or not you have the money to cover it, and, perhaps more importantly, if it’s worth the cost. In most cases it would be best to set a date for when you want to purchase something and set funding goals towards that purchase. This way, when the date comes, the purchase is accounted for without sacrificing important expenses.
Be on Time
If you’ve ever missed a payment’s due date, you’re likely familiar with the incurring fees that followed. By being late on a payment, not only do you increase that month’s expenses but you run the risk of being late again the following month.
This invites an exorbitant amount of time spent playing catch-up in order to get back in good standing with your service provider. By being on time with payments you’ll have better luck managing your fixed expenses.
Read more at Financial Costs Of Procrastination
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Prioritize your higher education
While school loans don’t necessarily help your assets, furthering your education can have long term benefits. Furthermore, a higher education holds more promise for a higher salary than no education.
If you have a bachelor’s degree, consider going on to acquire your masters. If you don’t have the time or means to spare to enroll in on-campus classes, click here for more information about online programs that make it easier to further your education on your own time frame.
A degree can make the difference in your annual income as your options for employment and experience increase.
Read more at Get Graduate Degree Fast and Free From Debt
It’s easy to think of investing as an option only the rich have, something hidden behind walls and investors. But the average person may have options made available to them through their employer. If 401k and stock options are available to you, you may have the option to change your level of investment and increase the return you get on this method of retirement planning.
While making the most of what you have to feel financially secure may seem daunting, it only takes a little investment and planning to make sure you’re in the best condition to provide for yourself and your family.
Remember to stay on top of recurring payments and to live within your means. Be smart with your investments and seek ways to extend your assets and cut down on your liabilities in order to obtain financial security and freedom.
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Read more at 10 Basic Rules Of Investing
What tips have you adopted before to increase your net worth? Do you think it’s possible to save for future even when you are presently faced with a lot of financial responsibilities?
PRODUCTS THAT MAY BENEFIT YOU
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- American Consumer Opinion (My wife and I earn around $150-$175/month)
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- Toluna Opinions (We’ve earned over $300 worth of prizes and gift cards in just a couple of months)
- Vindale Research (My wife and I earn $100-$150/month and around $200/month for friend referrals)
- Neilsen Digital Voice (Earn without taking a survey)
- Pinecone Research (Earn $3 per survey)
- Vindale (Earn $2 instantly by completing your profile. My wife earns at least $100/month on Vindale)
- Harris Poll Online (Earn while you surf online)
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Read more here for great product recommendations.