How do you increase your net worth? At a time when most families owe more in credit card debt than they have in their savings account, it’s an important question. Successful entrepreneur and investor Patrick Horsman shares top strategies on how to move your net worth up.
Credit card debt is an albatross around your financial neck. It reduces your net worth and with high interest rates can take many years to pay off.
Many people use credit cards poorly to finance big purchases that they otherwise couldn’t afford. Living above your means is dangerous to your financial health. You are paying tomorrow for purchases made today. If you lose your job or your income goes down, then you will be left with an inability to pay back your debt. This will negatively impact your net worth.
If your employer offers a 401k plan, max it out - especially if the employer matches your contributions. If your employer doesn’t offer a 401k plan, or if you are self-employed, open up an IRA or Roth IRA account. Fully max out those annual contribution limits on those accounts as well.
You can invest in yourself in a number of different ways. The first is through education. This is precisely why Patrick Horsman offers scholarships to undergraduates studying business and entrepreneurship. The Patrick Horsman Giving program gives two $2,500 annual awards to applicants who demonstrate both financial need and scholastic achievement.
Another way to invest in yourself is through skills classes, training, and seminars. Ideally, pick out 1 or 2 high-demand skills that you will need to be successful. Then go learn everything you can about them. Many websites and apps offer low-cost or even free classes on thousands of topics and skills.
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