8 Power Moves That Will Dramatically Increase Your Net Worth
The pressures of generating more income are just too consistent that it murders our focus on the most vital financial number. The net worth figure.
A normal person working the 9-5 will ask for promotions and raises while paying their credit card debt to maintain their lifestyle and vacations. Not so bad but I am pretty sure you are one of the smart ones.
You are a visionary who understands that your future is not in your boss’s hands. You want more than vacations and a normal lifestyle. Am I giving you too much credit? Well, I hope not. Have you been thinking about increasing your net worth?
In spite the fact that the term ”net worth” is commonly associated with the rich, everyone in every economic class has their value in net worth. So what is your daily focus? Yeah, you can tell me that you are doing all you can to increase your income generation. Side hustles, investments…You name it. But what is your main focus? Are you investing for retirement? Are you saving for financial security? Do you want to hit a certain net worth target? Because the latter is what determines it all.
First of all, how do you calculate your net worth?
Net worth is the total value of what you own(your house,investment accounts,checking account balance,car e.t.c) minus liabilities(mortgage,credit card debt,other debts e.t.c) . You can easily know your net worth by using the online net worth calculator. Maybe you are asking yourself, ”why is it so important to know my net worth?”.
Well, this is why;
-Net worth confirms your financial security.
-It shows you your financial progress.
-It guides and motivates you to increase your finance figures to live a better life.
Some time back, my finances were really in trouble that I even stopped thinking about my net worth number. I stopped planning for the future. All I could think of is how I won’t be able to afford this and that anymore. Debts were piling up and in no time, I was doing regret spending. Little did I know, my ”I don’t give a crap” attitude wasn’t doing any good.
Around that time, I met this millionaire who’s advice threw me back to my net worth tracks. This time ’round, I knew how I could skyrocket my net worth and be motivated enough to not forget. Yeah, they were just simple stuff that we tend to forget along the way.
Here are the smart moves that’ll increase your net worth;
1.Focus on that one thing
I know I tell you to do a lot at the same time; pay the debt, save, invest, build an emergency fund, side hustle…all that. Yeah, I am noticing how the list is long. Haha…seriously, how do you keep up? However you do it, I give you a big thumbs up. It’s a lot but it has to happen. So why does all this feel insanely contradictory? It’s not. All you have to do is make a plan.
Will decided to be a chef for the rest of his life. He is a chief chef at his own hotel and also invests in real estate. In order to skyrocket his financial success, Will has to focus on building and exploring his cooking career. He should talk food, dream food, write food…he should always be on toes learning about expanding his niche. All the other financial aspects of his life like real estate, paying debt e.t.c would take care of itself. When you achieve a lot in one financial sector, success in others just follows. Identify your path in life, channel your energy to it and you’ll see results.
2.Control Your Spending
This comes before paying debt and everything else, why? Overspending is what leads to debt in the first place. We want to go on vacations, spending extravagantly but what are we missing? Our window to financial freedom, we’ll always stay on the same financial spot. Hell!even lower… in this economy.
Spending on what really makes you happy is what matters. Even if it means skipping that Miami trip and plan to go to the next small island to reconnect with family. Bill Gates states how money is a limited resource. You may not afford it now. What are you going to do to afford it later? Control your spending for the bigger picture. The millionaire next door is one of my favorite financial books that explains it all from the mindsets of millionaires. The most important thing that accumulates wealth is living below your means.
4.Start Investing Early And Often
What did you realize on your last birthday? I realized that I need to accumulate many investments as soon as possible. I knew as long as seconds are ticking am running out of time. We always say time is money. Well, that’s right. It’s common sense, most young millionaires started investing early and kept repeating the process any chance they could get.
You can ask someone who’s selling a house how much they bought it three years ago. It’s mostly an amount that you can consider little currently. I was intrigued by a certain seventeen-year-old boy the other day. He does freelance writing, saving to buy a stand-alone house that he’ll rent some other students near campus right here in Kenya. At 17, I was not even a little bit aware of how people save. Anyway, long story short, grab the most you can, the earlier the better.
If you want to strangle your finances, ”debt” will be gladly at your service. I swear this is the person we never like but they befriend us with promises to end our current trouble. After signing the deal with the devil, he drags our finances with him leaving us hopeless. But I know you can conquer debt. Yeah, you reading this.
It all starts with good habits of living within our means. This, plus controlling our spending gives us power over debt. After you eliminate debt you can breathe and focus more on growing your finances. Eliminate debt and the changes will be stunning, standing out every time you check your increased net worth.
5.Study Money And Learn How You Can Manage It Yourself
I sure tell you about talking to a financial advisor but there is no other person that loves you like you do. And because of that, you should be always exploring how money works. Test the advised channels of growing personal finances and in the process, you learn a few tricks of your own. These tricks are what will enable you to squeeze your way to the top.
Every millionaire you see didn’t get there by letting their money being handled by someone else. They researched and identified the ins and outs of the money world and created better navigation for their wealth creation journey. Learn how money works and increase your chances of becoming financially free.
6.Make Goals And A Plan Entailing Action
I know you are tired of being told to make goals but it is what it is. When you make a goal, you automatically set your mind to developing a plan to achieve it. At least I hope everyone approaches goals that way. I know it can feel like a lot, promising yourself to be a millionaire in three years. That’s how you move forward. After making smart goals you draw a plan. It doesn’t have to be massive, covering every aspect in three years, no.
Draw the possible plan to achieve a third of the 3 years goal value(gives you a year goal). Divide the year to a 3 months plan(it’s more motivating and tangible). This plan starts the moment you have started putting it on paper. A plan is what makes a goal come to reality. The action is what dramatically increases your net worth.
A side hustle or business is a really smart way of collecting wins. Even I can’t depend on all my income generation to be through blogging. Anything can happen and because of that, it’s important that I have side businesses to maintain balance. When you depend solely on one income generating project, if the sales plummet, you will have to reduce your investments. A side hustle helps to maintain the growth of your net worth.
8.Track your net worth, track your future
I just made up that statement. Haha! I thought it would be funny, it’s not. How do you get motivated to work? In spite of loving what I do, tracking my finances keeps me going. When I see numbers increasing I feel good to maintain the results. Even when the sales become stunted, your numbers keep you on toes.
Track your money patterns to know what works and what doesn’t. That way you keep learning and making better choices. Makes sense?
Increasing your net worth does not happen overnight. It requires a plan and everyday learning on how to get financially better in order to succeed. I know there are so many guides on how to do it, figure out what works for you. Absorb some or all the tactics above, go out there and do great.