How to Increase Net Worth:  14 Best Ways to Grow Your Assets

Are you trying to learn how to increase your net worth? If so, then there are a number of things that you can do to grow your assets and reduce your debt.

What is Net Worth?

Net worth is the total value of what you own, minus the total amount of debt. Your net worth is your assets minus liabilities. The resulting figure is your net worth. A more nuanced view of the net worth involves looking at your liquid net worth vs. illiquid net worth.

Can You Increase Your Net Worth?

Absolutely. This article teaches you strategies to increase your net worth. Getting started sooner makes it easier to build your net worth later.

How to Increase Net Worth

The first step in building your net worth is to get rid of debt. Net worth is another term for equity or residual value, meaning assets minus liabilities. Therefore, lowering debt becomes a strategy to increase your net worth by realizing guaranteed returns on the interest you don’t pay.

How to Increase Net Worth

1. Pay Off Credit Card Debt

The best ways to grow your assets and increase net worth include targeting debt with the highest interest rates first, then paying other debts off as you go.

How to Increase Net Worth

2. Build an Emergency Fund

One way to grow your assets and increase net worth is to create an emergency fund that can help you stay financially afloat without having to rely on any other money, especially high interest debt from credit cards or expensive personal loans.

How to Increase Net Worth

3. Pay Off Student Loans

One way to reduce your interest rate is through refinancing your student loans. To bring down the costs of these loans, many have sought using refinancing options through services like Splash Financial, an online student loan refinancing marketplace.

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