List of effective ways to have a high net worth. Knowing your assets and liabilities can help you increase your net worth. Do you have a high net worth? What is your current net worth? Are you one of the high net worth individuals like Bill Gates, Warren Buffett and other billionaires.
My assets are increasing and it’s good to know about it. The reasons why I feel great about it is because the moment my assets increase, and so my net worth too. But sometimes, you might experience that even though your assets increased, your net worth isn’t.
Do’s and Dont’s
- Do buy items that appreciates value
- Do avoid buying things that depreciates value
- When you borrow money, make it work for you
- Increase your assets, but lessen your liabilities
- Pay your debts with high interest rates
- Do buy things that generates money – they are assets
How to Have a High Net Worth
This may sound obvious. It is easy to have a high net worth. If you are a business owner and investor, having a high net worth very fast is possible. It is because business owners and investors have different assets compare to an ordinary employee.
Step 1. Know your assets.
Calculate the market value of what you have right now including your cars, real estate properties, stock shares, watches, phone, and other things that have value.
Step 2. Calculate your liabilities.
Calculate the amount of what you owe from other people, banks or any other financial institutions.
Step 3. Calculate your net worth.
This process is very easy. All you need to do is to subtract the total amount you get in assets and liabilities. Say for example, if the market value of your assets is worth $1,000,000 and you have a liability worth $200,000, that means your net worth is amounting to $800,000.00
Step 4. Keep on buying assets not liabilities.
When you buy more assets, and you avoid buying things that depreciates value, your net worth will surely increase. If you buy things, make sure they generate money for you.
Conclusion
If your goal is to have a high net worth, you must first know how to calculate your net worth by knowing the amount of what you own and the amount of what you owe.
Do what rich people do. Do what high net worth individuals do. Bill Gates, Warren Buffett and other high net worth individual are entrepreneurs and investors. Even though they are already super rich, many of them live frugally and simply. Instead of buying luxury cars, and spend money for other leisure and enjoyment, they spend their money to make another more money. That’s the reasons why they are now billionaires and belongs to high net worth individuals a.k.a “worlds richest men”.