6 Ways to Boost Your Net Worth

6 Ways to Boost Your Net Worth

Everyone has a net worth. It essentially means the value of all you have minus any money you owe to anyone. If you owe more than you currently have, then you likely have a negative net worth. It’s more common than you think. Fortunately, there are ways to boost your net worth and get to a place of positive value. I’m going to walk you through a few ways to boost your net worth.

Calculating your net worth

Before we can really dive into improving your net worth, you need to know what you’re starting with. Calculating your net worth is pretty simple. It basically entails adding up all of your assets (think cash, bank account balances, property, investments, etc.) and subtracting all of your debts from that number. This formula should help:

Net Worth = Total of All Assets – Total of All Debts

As I mentioned above, your debts can outweigh your assets and leave you with a negative net worth. Don’t let that deter you. It’s possible to pull yourself out of debt and increase your net worth every single pay day!

Your net worth may not seem that important to you if you’re young, but as you get older, it can help you leave a legacy behind.

Ways to Boost Your Net Worth

By now, you should have calculated your net worth you know where you’re starting from. Whether you have a negative net worth or not, you should always strive to grow your personal value.

Since your net worth is ultimately comprised of assets and debts, it only makes sense that increasing your assets and decreasing your debts is what will improve your net worth.

#1: Increasing Assets – Start putting more into savings regularly

One of the easiest ways you can increase your assets is by putting more into your savings account on a regular basis. If you normal save $25 every paycheck, then increase that number to $50. Since your savings account should only be used when needed, the balance should grow as you make deposits.

If you are saving for a specific goal or amount, don’t be ashamed to use that money when you’ve reached your goal. Yes, it will lower your net worth to spend that savings, but there will be plenty of opportunities to continue to grow your savings and boost your net worth.

#2: Decreasing Debts – Get rid of your most expensive debt (likely credit cards)

It should come as no surprise that getting rid of debt is one of the best things you can do for your net worth. People can very easily become comfortable with debt, but the reality is that if you have debt, you owe people money.

Your money in your savings account or anything you earn isn’t technically yours until your debts are paid. That should make you very uncomfortable!

Use the snowball method and start with your most expensive debt. It’s likely a credit card with a very high interest rate, but doesn’t have to be. Whatever debt is costing you the most money every month, make it a point to get rid of it as soon as your situation allows.

#3: Increasing Assets – Acquire land or property
Maybe you don’t want to go the route of increasing your savings account balance, but rather, increase the amount of tangible assets you have. Acquiring land or property is a great way to improve your net worth, especially since these types of assets increase in value over time.

This can be a more advanced method for boosting net worth, so make sure you proceed with caution and work with a trusted advisor.

#4 Decreasing Debts – Avoid borrowing money from family or friends

Another form of debt that people can get comfortable with is borrowing money from friends or family. This type of debt doesn’t usually come with an interest rate, but it’s a debt nonetheless.

While you may get some grace with repaying this type of debt, you don’t want to forget about it. Do yourself and whoever loaned you the money a favor and pay this debt back as soon as you can.

#5 Increasing Assets – Tie your money up in CDs or investments

If you want to make it easy to improve your net worth and not touch your assets, CDs and investments can help. CDs require you to keep your money locked in for a certain amount of time, unless you want to pay a fee.

You don’t always get the best interest rate, but if you struggle with tapping into your savings, this can be a great option.

Investments are another great choice. While there usually aren’t any time requirements for investing, the best investments are those that are left alone for long periods of time. Why do you think 401(k) plans are so powerful? Investing for the long haul is a great way to improve your net worth substantially over time.

#6 Decreasing Debts – Find ways to reduce your debt balances

Paying off any kind of debt is the most powerful way to boost your net worth, but there are other alternatives to reducing your overall debt. Options like interest free balance transfers, debt consolidation, or even bankruptcy can help you reduce your debt balances.

I don’t believe people need bankruptcy to get out of debt and improve their net worth, but it certainly does the trick.

Slow and Steady Wins the Race

All of the ways listed above to boost your net worth are very powerful, but are most effective over time. You should always remember that consistency is the best approach.

It’s not going to be an overnight process, but over time you will see your net worth increasing. Stay strong and stay disciplined in your efforts, it will all pay off!

Related: All the Ways to Save Money


Every single person has a net worth. What you do with yours is all that matters. Your goal should always be to have more assets than you do debts. It’s a lifelong process, so the earlier you get started, the better off you’ll be!

Have you calculated your net worth? Do you keep tabs on the growth of your net worth? Post a comment below to share some of your net worth experiences!

The CGS Team



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