Once you have your assets and liabilities listed, you can calculate your net worth using the formula: Net Worth = Total Assets − Total Liabilities. A positive net worth indicates that your assets exceed your debts, while a negative net worth means your liabilities surpass your assets, signaling a need for financial planning. Tracking net worth regularly, such as quarterly or annually, helps you monitor growth and identify areas that need attention.

Increasing net worth requires a strategic approach to both building assets and reducing liabilities. One of the most effective ways to grow your net worth is by increasing income through additional revenue streams, such as side businesses, freelancing, or passive income opportunities. At the same time, investing wisely in stocks, index funds, or real estate can help your assets grow over time. Reducing high-interest debt, like credit card balances or personal loans, is equally important because these liabilities can erode wealth quickly. Consistent savings, automated transfers to investment accounts, and avoiding lifestyle inflation as income grows are all essential practices for increasing net worth steadily.
https://gogomagazine.co.uk/