Connect with us

Ezine

What Is Your Net Worth and Why Is It So Important?

Published

on

Young businessman carries out its corporate business outside and talking on the phone | What Is Your Net Worth and Why Is It So Important? | featured

What Is Your Net Worth | Poor people focus on their working income. The most common question asked is “how much do you make?” not “what is your net worth?”.

RELATED: Understanding Net Worth

What Is Your Net Worth and Why Is It So Important?

Net Worth concept with hand pressing a button | What Is Your Net Worth and Why Is It So Important?

I will be making general statements about poor and rich people throughout this article. I am just talking about money here, nothing else and the statements are general.

I don’t want anybody to think I believe that poor people don’t have value and rich people are all that. Let’s just focus on it meaning how much money you have. Most of us were programmed to believe that we “have to work hard for money”.

No question, working hard is important but working hard alone will never make you rich. How do I know that? I take a look around at all the people I work with.

Most of them are hard workers and I have been working with them for years. There are billions of people who slave away, working their tails off all day and even all night long.

Are they all rich? In the book, Millionaire Mindset, it’s called Parkinson’s law:

“Here’s what is normal in our society. You have a car, you make more money, and you get a better one. You have a house, you make more money and you get a bigger house. In general, as income goes up, expenses almost invariably go up too.”

That is why income alone will never create wealth! Think back to when you first started working. How much were you making then compared to now?

Do you have any more money in your pocket now? How about your savings? Poor people struggle just to pay the bills and buy groceries. Time to make a change. It’s time to increase your net worth.

HOW TO INCREASE YOUR NET WORTH

The true measure of wealth is net worth, not working income. Net worth is the financial value of everything you own minus your debt.

Today, a large percentage of people probably have a negative net worth. With the proliferation of credit cards and jobs being scarce many more people are declaring bankruptcy.

Stop thinking that the only way to become wealthy is to be paid more for your job or work more jobs. There are four net worth factors – income, savings, investments, and simplification.

Working income is important because it gives us more money to save and invest. Simplification means changing your lifestyle to create more income.

Maybe it means giving up that expensive coffee every day and taking that money and investing it. You won’t have to think long about something you buy often that you don’t really need, right?

I am sure Donald Trump doesn’t think at the end of the day “wow, I worked 12 hours today, think of how much overtime I will get paid?

Start thinking like a rich person and look for more ways to create income. When Donald Trump went bankrupt did he look for a job?

I am sure there are many companies that would have loved to hire him, right? No, he looked for investments and ways to recreate his wealth.

The best way you can earn more income without trading dollars for time is to start your own business. The tax deductions just for having a home-based business are worth it. You can create wealth apart from your day-to-day job by investing just a few hours a day.

Are you looking to start a home-based business to increase your net worth? if you want to read more articles on creating income, what is your net worth, and increasing your net worth click HERE

What Is Your Net Worth and Why Is It So Important?

Article Source: https://EzineArticles.com/expert/Tammy_J._Gregory/1494499

You Might Also Like:

Keep up to date with the latest finance news by following us on Facebook and Instagram.

Article Source: http://EzineArticles.com/

Click to comment

Leave a Reply

Your email address will not be published.

Continue Reading

Subscribe To Our Newsletter:

President Trump Playing Cards offer
Raven Steelworks
Swing Trader Course offer

Copyright © 2020 The Capitalist. his copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.