Some Habits That Boost Your Net Worth

 

The path to increasing your net worth is straightforward: spend less than you earn. However, implementing this can be challenging. Capitalism has brought numerous advantages, offering us an abundance of choices and making almost everything available for a price. From a more critical perspective, one could argue that capitalism functions optimally when people are in debt but possess enough resources to repay their debts and, ideally, progress to a point where they can assume more debt. In the pursuit of expanding our spending capabilities, here are ten habits that can help enhance your net worth.

 

NO.1: INVEST IN THE FUTURE

 

If you have some extra funds, you might consider venturing into the stock market. While discovering the next Microsoft before others is unlikely, some investors do make significant profits from the market. To achieve this, you need to be knowledgeable about market trends and predictability. You can construct a relatively safe portfolio of stocks. If you believe the stock market is a suitable choice for you, you can explore low-risk options online, but be cautious of hidden trading fees. Potential investments include treasury bonds, which offer stable, though not particularly exciting, returns. Gold and other precious metals are traditional, reliable investments.
You don't have to invest a substantial amount initially, but the money you use should be disposable income that you can leave to accumulate earnings.

 

NO.2: BUILD A NEST EGG

 

Stashing money under your mattress can be convenient in an emergency, but inflation will erode its value over time. A better approach is to open a savings account. When exploring various banking options, check the interest rate and whether the institution charges fees for maintaining your account. Once you've found a suitable account, try to establish the habit of depositing a small amount into it every week or month. Gradually building up your savings on a regular basis is more manageable for your current budget. As you become more comfortable, consider increasing the amount you save each week or month. It's also a good idea to encourage your children to put money in their own savings accounts. You may encounter some financial advisors who recommend that your savings should "hurt." What they mean is that you should save more than you feel entirely comfortable with, and by making this a habit, it will help you rein in your usual expenses. While there's some truth in this advice, saving more than you can realistically afford may lead you to dip into your savings account to cover regular bills, which is not an ideal situation.

 

NO.3: PLAN, PLAN, PLAN

 

Another habit that successful people develop is planning. You don't have to plan every single minute; some flexibility is essential. However, you should have a general idea of how you intend to use your time. This allows you to allocate time for activities that have the potential to increase your net worth. 

 

NO.4: LOOK FOR ALTERNATIVE OR ADDITIONAL INCOME

 

We all possess skills, and often these skills remain underutilized. Whether you are currently employed or not, you may consider developing an additional source of income by putting your skills to work. For instance, you could explore platforms like Craigslist to advertise your dog walking services. The internet age has opened up opportunities to turn your skills into profitable ventures. Even if your local economy is experiencing a downturn, you may discover opportunities in fields you hadn't previously considered. Creating an additional revenue stream is an excellent way to bolster your net worth and provides added financial security in case you encounter challenging circumstances.

 

NO.5: NETWORK TO GAIN MORE OPPORTUNITIES 

 

There's a saying that goes, "It's not what you know, but who you know." While it might sound a bit cynical, it reflects how many of us navigate through life. We're more likely to seek help from people we know rather than from strangers. If you have skills and are seeking opportunities to earn extra income, expanding your circle of acquaintances can be crucial. Make it known that you are available and proficient in what you do. Initially, you might find yourself doing favors for friends, and then for friends of friends. There's nothing wrong with that, but ensure that they understand you expect compensation for tasks that consume your time. Ideally, they should be aware of this in advance because it can be awkward to request payment from someone who assumed you were helping out for free.