5 ways to increase your net worth

Stop spending so much

We all need to cut back on our spending in certain areas. That morning cup of coffee may not seem like much, but it can add up. Figure out your weak spot for spending and cut back. If you don’t spend it, then you’re saving it and that means a higher net worth. Eliminating inconsequential purchases can turn into major savings over the course of a year.

Pay-off your debt

If you’re having to make debt payments every month, you’re definitely not going to be as successful at saving money. Get out from under that debt as soon as possible so you can go back to focusing on saving for the future.

Focus on retirement savings

Do you have a 401k? If not, you’re missing a good opportunity to grow your net worth. Some companies will match contributions, and if yours does, you need to take advantage. Free money is always a great option. And don’t forget about compound interest. If you’re thinking about an IRA, the sooner you begin, the better.

Make more money

Are you due for a raise? Do you deserve one? Then ask for it. Do you like being active on the weekends? How about a part-time job? Working a second job for a few hours on the weekend can be a great way to supplement your income.

Buy a house

Owning real estate is the best way to jump-start the building of your net worth. If you feel you are ready to buy your first home, go for it. The longer you rent, the longer you keep throwing money away. Take the leap when you’re ready by investing in something that will definitely pay-off over time.