What Are You Doing To Build Your Net Worth?

[james.hendrickson]

So I've managed to get some of my personal debts paid off and I'm starting to think more about what I can do build my own personal net worth.

Other than the basics, I'm wondering what habits, investments or methods you guys have found most effective in build your own personal wealth?

Here is what I'm considering the basics:

1. Improving your income
2. Reducing debts
3. Reducing expenses (living frugally, etc.)
4. Saving consistently and prudently
5. Investing consistently and prudently

I've historically done the best when investing in single family homes (condos in DC) and in stocks (hit a couple of home runs). I've also done well building up side businesses on the evenings and weekends.

Anything you guys are doing in addition?

[Fishindude77]

Farm ground has done well for me. First place we purchased was $750 an acre (30 years ago), it's now worth conservatively $5-6000 per acre, plus it's been spitting off income the whole time.

[scfr]

All of the things you mentioned, plus paying attention to what percentage of net worth is made up of non-financial assets. My experience (and I assume the experience of most others) is that financial assets grow faster than non-financial assets, so while it's nice to have a comfortable home and reliable cars, keeping the cost of those big-spend items down helps our NW rise faster. When I refer to non-financial assets, I'm talking about personal home & vehicle(s).

Our single best investment has been my husband's business, which we never would started without first following all of the steps you mention.

[LivingAlmostLarge]

Improve your income is the fastest way. Jump companies get a promotion, build another income stream. This seems to work best for us. I mean we save from our income, but our biggest boost has been making more money. Without having always been financially prudent DH wouldn't have leap into a new career and neither would I and it's paid off in spades for him and it's starting to look very promising for me as well. So he's far outstripped what he used to make. I am making less still overall but my job is more flexible and something I can do part-time and potentially longer. So it's a win we both feel.

[TexasHusker]

One thing I am doing is starting to over-estimate my assets. That increased my net worth in about 10 minutes.

[disneysteve]

Improve your income is the fastest way.

If, and only if, you don't elevate your spending to match your higher income, a mistake very commonly made. Higher income only leads to higher net worth if you do the other 4 things on the list.

[Atretes1]

Right now, I am using overtime to buy rental properties and maxing out retirement accounts.

[rob62521]

I think saving consistently is the key, especially when you are younger. When I was working, I would encourage the younger teachers to open a retirement account, even if they couldn't afford much because compounded interest was there friend. Even as a retiree, we try to save money and look for decent interest rates on the cash. But one big thing is we still watch our spending. We aren't living like misers, but are careful about our spending and not going crazy. We have a friend who makes far more in pension monies and Social Security, but even still, cannot make it and has to constantly borrow money. And it is for more stuff.