How to grow your Net Worth when you don’t earn a lot of Money?
Is it Possible to grow your Net Worth especially when you don’t earn lots of Money?
Yes, it is 100% possible to grow your Net Worth when you don’t earn a lot of Money or you don’t have a fat salary from your Job.
So How can this be Possible?
Well, for that you have to understand the basic science of Modern Money. You have to understand that how Net Worth is calculated and how can you push your Net worth to sky without earning a lots of Money…….
See Net Worth = Assets – Liabilities
In Simple words, Newt Worth means what you own minus what you owe. Say for Example, I have a Portfolio of Rs. 2 Lakhs (Mutual Fund Portfolio) And I have a student loan of Rs. 32 Lakhs so My net worth is 2-32 = Rs. – 30 Lakhs.
Yes, in this Example the Net worth is Negative and this is not a good sign. But here I just want to show you that Net Worth can be Negative also especially in the student life when your earning has not started yet and you have taken a huge student loans.
So by this formula, you can increase your Net worth by 2 ways.
01) by reducing your Liabilities (Debt) &
02) By increasing your Assets.
So First of all Start paying off all of your Debts such as Credit Cards, car loans, home loans, consumer debts, personal loans or any other kind of Debts. This is the cheapest way to increase your net Worth and paying off your Debt is the Best Investment.
Another way to increase your Net Worth is to increase your Assets. Now you can increase your Assets by buying new Assets such as Real Estates, Gold, Stocks, Bonds & Businesses. This is the simple way to increase your Net Worth but again the tile of our Article is how to increase the net worth especially you are not making a lot of money?
So in that case, the Best way to increase your Assets and thus Net Worth is, “You Just Create New Assets and add it into your Portfolio.”
Yes, Creating new Assets and adding it into your Asset Portfolio is the Best way to boost your Net Worth when you are earning very little to No money (Say for Example in your Student Life…)
