In order to increase your net worth, you have to get rid of the debt. Is debt always bad? Not necessarily. If you borrow money to start a business or buy property, it has the possibility of being a good decision.
The problem is that most people borrow money and all it turns out to be is a noose around the neck. In most cases, debt is something that just weighs you down. It keeps you stranded.
That’s why I’m generally against borrowing money of any kind. Generally speaking, if I can’t pay cash for it, I don’t buy it. This keeps my life “light” so I feel free and I invite you to bring that sense of lightness and freedom into your life by being selective on what you spend your money on.
The somewhat opposite of debt is investing. What I wish I had learned when I was younger is that wealthy people don’t stick their money in a savings account earning .08% a year. They invest it in ways that earn them much greater than that.
Plenty of people have invested in real estate over the years and become wealthy. But after doing tons of research, I still think the best way to invest is through dividend-paying stocks. There are many reasons for this, which I will continue to write about on this blog.
There are many ways to pay off debt and invest to grow your money–too many to list here. But I do have some key points to get you started:
- Pay off any debt not related to starting a business or buying real estate (such as credit card or medical) as quickly as possible. This is the debt that’s keeping you from increasing your net worth.
- Once that debt is paid off, take the money you were using to pay it off each month and invest it into an investment vehicle such as dividend stocks, bonds, CD’s or real estate.
- Continue to add to your investment portfolio. This will grow you net worth exponentially! For more on this, check out my article Compound Interest and Passive Income: A Simple Explanation That Will Transform Your Financial Future.
I hope you will subscribe so you can continue to learn more about growing your net worth. More importantly, I hope to help you live the life of your dreams by encouraging you to invest in yourself. This is the key to give you not just a higher net worth, but more joy and peace:)