(Newswire.net — May 24, 2020) — An individual’s net worth can reveal many things, but it’s mostly a way to gauge financial stability and success. Many have calculated their net worth and become despondent when finding the figure might be a negative number.
To start, let’s review the definition of what makes up your net worth. Net worth is the difference between what you own versus what you owe in debt. First, calculate your items of value, which include your home, cash balances, investment accounts, and retirement funds. Then, subtract your obligations, such as credit card debt, mortgage payments, auto loans, or student debt. The final amount is considered your net worth.
Jason Kulpa, net worth expert and experienced serial entrepreneur, discusses four ways to help immediately boost one’s net worth below. If you’re interested in learning about more famous people’s net worth, take a look at Ken Goldin Net Worth.
1. Examine Your Liabilities
Take a moment to write down all of your existing liabilities, which may be a mortgage payment, credit card debt, auto loan, or student loan. Are you in a position to be able to eliminate any of these payments or reduce them?
If it has been a while since you took on any of these debt obligations, take a look at current rates to see if it is possible to refinance. Refinancing a mortgage or car loan can help save you a considerable amount of interest and even pay off your obligation faster. Occasionally lenders may offer 0% or lower rate balance transfers that can help you save on credit card debt.
Consider making additional payments towards your mortgage. Extra payments go towards the principal, which can aid in paying off the amount quicker and saving in interest expense. Reducing debt obligations can quickly increase your amount of equity.
2. Cut Expenses
Sit down and review your monthly spending habits and budget. One of the quickest ways to increase your worth is to find ways to save money. Consider making easy changes, like bringing your lunch to work instead of eating out, canceling excess subscription services, or selling a vehicle if you have multiple cars with payment plans. Examine areas where you can cut back and pay off in just a short amount of time. These sacrifices don’t have to be permanent, but in the short term can quickly increase your net worth to meet your goals.
3. Get an Estimate for Your Assets
The value of assets can fluctuate over time. If the economy is booming, consider getting an appraisal on your home. Most likely, the resale value of your property has increased. Taking the time to get a full understanding of your assets’ value can help paint a realistic picture of your net worth.
4. Review Additional Costs
There are many expenses we take for granted daily that we assume we have no control over. Essential items such as healthcare premiums, home, and automobile insurance, or even account maintenance fees can add up over time. It may be beneficial to sit down and evaluate if there are better and more affordable alternatives out there. Are you paying for excess insurance you don’t need or use? Does your checking account charge more than the interest it pays? Little changes, like finding the right providers, can also help provide the boost you need.
About Jason Kulpa
Jason Kulpa is a net worth expert and the former CEO of UE.co, San Diego’s Fastest Growing Business multi-year award winner, and a Certified Great Place to Work multi-year winner. Under Mr. Kulpa’s leadership, in 2018, his teams volunteered at over 24 events and worked side-by-side to improve the San Diego community. They hosted a gala dinner benefiting individuals with autism, cheered on Special Olympic athletes as they broke their records on the track, and brought school supplies and cold-weather gear to students impacted by homelessness.