How do you increase your net worth in the next 12 months? This is a straight forward question. Yet, it is one that many people can’t or don’t want to answer. The truth is, it is not their fault.
There’s a lot of pieces to this puzzle, so let’s be clear about what we are going to discuss:
- Assets and Liabilities (components of Net Worth)
- How to calculate your net worth
- Why your net worth is important
- The five things that hurt your net worth, and
- The five things that help your net worth
As we begin to learn about net worth, let’s address some common mistakes that distract people from growing real wealth and achieving financial freedom.
Unfortunately, most people see “things” and assume they equate to wealth. Merriam-Webster defines “wealth”, as an abundance of valuable possessions or money.