Tips for Boosting Your Net Worth

Net worth is an odd thing to calculate. This figure takes into consideration all your assets and debts weighed against each other in order to place a value on your financial circumstances. Net worth can make borrowing incredibly easy, or alternatively a nightmare scenario. But boosting your net worth and making some of these resulting financial considerations easier in the process is not as difficult as one might think.

Get serious about paying down your debts.

Debt is the number one killer of net worth calculation. The average American carries about $90,000 worth of personal debt (including car, home, and student loans on top of revolving credit utilization), and this figure is only growing. In order to create real and lasting wealth, you need to get serious about eliminating debt. Begin with high-interest loans like those on credit cards. Considering a balance transfer to reduce high-interest rates and consolidate sources of debt is a great way to begin to pay off these money pits.

Invest in real estate.

Real estate is a major financial boon for savvy investors like Alastair Barnes with an eye for great properties. Real estate can be bought into even if you aren’t financially solvent yet. Investing in a REIT through your current stockbroker is the best way to take advantage of the high-value returns provided by the marketplace without the startup capital. This is a fantastic way to learn the market as there are countless Real Estate Investment Trusts to choose from, each offering its own blend of risk and property types. Learning to gauge the market through stock holdings will prepare you for when your own capital has reached critical mass and you can pull the trigger on your own physical real estate property. Getting into physical holdings allows you to flip homes for major markups or hold onto great assets to rent out, providing you with something of a monthly paycheck not unlike a salary to add to your cash flow or pay down other obligations.

Consider other leverage-added assets.

Real estate is different from the stock market in that physical properties are easily leveraged for other borrowing and buying opportunities to continue growing your overall portfolio. Property is not unique in this ability, however. Buying gold or other commodities that can be appraised for value also gives you the option to leverage their worth for additional buying power when taking out loans. Investing in gold will help you to pay for new real estate properties or to get more favorable rates on a personal loan designed for debt consolidation. Buying into assets of this type can provide the impetus required to swiftly kick your debts to the curb.

Surround yourself with a new crowd that will invite opportunity.

Attending cocktail parties and other social gatherings that ditch the local pub in favor of a more “high society” atmosphere can be a great way to interact with those who have already made it big. This can spark some creativity in finding your next financial opportunity for growth or a potential business partner in your current venture. Adding a statement piece to your wardrobe like a white cocktail dress or power suit is all you need in order to blend in. Fake it ‘till you make it is great advice for anyone looking to transform their station. You should lean into this approach if you’re looking for something to energize your financial circumstances.

Getting smart with your finances is the only way to dramatically improve your net worth. Work on opportunities that allow you to make a two-way win by increasing buying and borrowing power while also paying down any debts you already owe. Follow in the footsteps of those already striking it large.