Steps To Increase Your Net Worth with Real Estate Investing

It’s easy to spend a lot of time thinking about your finances. We all want to know how we’re doing, checking our balances on all sorts of accounts – savings, checking, retirement accounts, investments, and so on. Of course, all of these aspects are important. However, let’s not ignore another important number: net worth.

What is Net Worth?

Your net worth is the difference between what you owe and what you actually own.  By things you own, I mean things like your home, cash, investments, retirement money, vehicles, etc.  Your expenses would be things like your consumer debt, mortgage, or other loans.

Calculating Your Net Worth

If you want to know your net worth, make a list of your assets and your debts. Then, simply minus your debt from the value of what you actually own. The number that remains is your net worth.

Assuming you’ve done this, how do you feel about your net worth? Is it surprising? Did you think it would be more than the number you calculated? If you’re disappointed, rest assured that from this day forth, you can do certain things that will help you increase your net worth.

Look At Your Debt

The first thing you can do is look at your debt or liabilities. Figure out how much you actually owe, including your credit cards, personal loans, and mortgage.  Now, sit down and figure out ways you can reduce these debts. Make a plan toward becoming debt free, even if it looks like it will take you many years.  The act of doing this helps you gain some momentum toward a life that has less debt and more assets.

Know Your Assets

Make a detailed list of your assets.  If you’re not sure what the value of an asset is, take the time to research and come up with an accurate number. The following are common assets:

• Your home
• Rental property
• Vacation home
• Stock investments
• Collectibles

Reduce Expenses

Now, look at your expenses. Where can you trim them?  Do you have a budget?  Are you actually following that budget? Usually, if we’re honest with ourselves, we can find ways to cut some expenses. Whether that’s only eating out once a week instead of four or five times, or skipping that impulse purchase, it’s trimming what’s going out.  Keep in mind you’re not cutting out things forever.  You can reduce your expenses now, working towards becoming debt free. Then, one day, as you become more financially free, you’ll be in better shoes to decide to make such purchases or not.

Work Toward Paying Off Your Home Loan

Many people opt for a 30-year repayment option on their home, but what if you could have that paid off in half the time? Sure, this means your monthly payments will be more, but how good will it feel to have your mortgage paid off?  If you make extra money, as in a profit when closing on a rental property, take that money and put it toward your mortgage. 

Invest In Real Estate

I’ve taught many students through the years about the monetary power of investing in real estate.  There is huge potential for increasing your net worth by using my Unlimited Funding strategy for buying homes with no money down. Keep learning about buying property using the ‘Subject-To’ method, and go ahead and get started.  This is one of the fastest ways to increase your net worth, as plenty of my students will testify.

You can increase your net worth. Take these tips into consideration as you continue your journey toward financial freedom.