Every person in this world wants to improve his financial standing. We look at those who have amassed great wealth and are amazed at how they have been able to increase their net worth over time. Many of the richest businessmen, celebrities, and personalities came from humble beginnings and had to work their way up the ladder so to speak, so it would benefit us to know how they were able to improve their net worth and achieve their goals. The best example of that is the impressive list of self-made millionaires and billionaires. including the likes of Steve Jobs, Bill Gates, Lil Wayne, Howard Stern and Simon Cowell.
Financial success rarely happens overnight, and if it does come from sheer luck or fortune such as winning the lottery, maintaining financial security is still part of the equation. Money, after all, is a commodity that has to be properly managed in order to be of good use and provide security. If you are wondering how you can become more financially secure and increase your net worth, the first thing to remember is that this is a process that requires your commitment and self-discipline.
Make an honest assessment of how much you earn monthly and what your regular expenses are. Having a clear idea of your income and expenses is the first way to strategize how to grow your net worth and save more than you spend in a given month. Now, expenses do not include those luxuries or additional purchases you make that are not really necessary such as designer coffee or gourmet chocolates. Your needs would include housing expenses (rent, mortgage, maintenance, homeowner fees), utilities (gas, electric, water), transportation, food, education expenses, and other necessities.
After you have listed down your expenses, the money you have left would be your “free cash flow”, and how you spend this money could have an impact on how successfully you can grow your net worth. If most of this money is being spent on wants or desires that are not really necessary, you should be prepared to make sacrifices and let go of expenditures you can cut out. Instead of spending too much on entertainment or partying with your friends, you can decide to save most of your free cash instead in a high-interest savings account, or invest in various funds or stocks and watch your money grow.
Most people want to succeed and become financially stable but are not willing to make sacrifices in order to fulfill that dream. What makes most successful people wealthy is the amount of time and planning they put into their business ventures and deals, and the risk that they expose themselves to when taking chances in industries or enterprises. Also, they had to give up much of what regular people enjoy, focusing instead on reaching their goals.
Delayed gratification is something that is missing in our society nowadays. We want to enjoy right away, and are often too impatient to simply wait and set aside pleasures for now while we wait for a much better opportunity. But if you really want to see your net worth increase and your hard work pay off, the resolver will have to come from within you to get your priorities straight and let go of what is hindering you from your ambition.