Who Wants To Be A Millionaire – Do You Know Your Net Worth?

Who wants to be a millionaire – Do you know your net worth?

There was a study of hundreds of Americans that had a net worth over one million dollars.  The interesting thing about this study was that they found these millionaire Americans to be hardworking and frugal people with solid bank accounts.  They also found that these people live very modestly.  No McMansions, Rolex watches or Ferrari’s.

Do you know your net worth? First of all, what is Net Worth?  Net worth is very simply put; a summary of your financial status at a given time.  The formula is simple:  Assets minus liabilities equal your net worth.

Knowing your net worth is probably one of the most important things you should evaluate each year.  Do you have plans on retiring some day?  Would you like to own your home? Do you want to start a business? If you answered yes to any of these – you need to know your net worth.

Knowing your net worth is like having a road map to where you want to go.  Dreaming about it and wishing for it isn’t going to get you there.  Knowing your net worth lets you see where you are and where you want to be.  It allows you to see where you need to make changes to get to that financial goal.

How do you increase your net worth?  The down and dirty answer to this is to save more and spend less. Many Americans “feel” that their net worth is a visual one and if you can’t show it in high-end toys and a lavish lifestyle then what is the value of a higher net worth?

But the true American millionaires have a cushion of cash for unforeseen setbacks or the capital to start that new business and the option to retire and live out their dreams comfortably.

Save – invent new ways to save.  Force yourself with automatic payroll deductions.  SAVE, SAVE, SAVE!

Eliminate credit card debt and other high interest debt.  Eliminate careless spending.

Raise your income.  Make wise investments.  Start a home business, train for a better job.

Who wants to be a millionaire? Do you know your net worth?



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