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             Once you have calculated your personal net worth, you can now begin to look at ways to increase it. To recap, a net worth is your assets (what you own) minus your liabilities (what you owe). Think of it as

a financial compass. One of the keys to becoming financially successful is to increase your net worth over time at an accelerating pace. Here are 5 ways you can increase your personal net worth:

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Please read the disclaimer before you continue

            If you have completed your budget and found out that it does not balance, give your self a pat on the back. Not only do most people lack the knowledge or desire to balance a budget, they won’t even take the time to make a budget in the first place. If you have found out that you are spending more than you make, you have taken a big first step to correcting this problem. You cannot change what you do not know. If you would like to find out how to create a budget, you can read my previous post found here.

            To put it simply there are really only two ways that you can balance a budget. They are:

1.                  Make more.

2.                  Spend less.

You can find out if you are spending more than you make with the free budget spreadsheet found in the free “how to manage money” tool kit.

Please read the disclaimer before you continue.

            One of the first areas to look at when learning to manage your money is your personal net worth. This simple calculation will give you an idea of weather or not you are moving in the right direction. Think of it as a financial feedback mechanism. I would go so far as to say that this is the single most important piece of information you will need to know. If you just learn what this is and how to calculate it, you will be further ahead than most of the population. Lets look at how to calculate your personal net worth, as well as how you can get your free personal net worth calculator.

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