The best way to increase your net worth

The trend of accumulating luxury and filling the house with a lot of stuff has been on a rise and this is the reason that most of the people are living under debt. The connection between accumulating non-productive assets and debt is very deep rooted. When you go buy stuff you do not use your existing money. Instead, you make use of your credit card. When you use credit card, as the name, suggests you take a loan from the credit card company. This increases your liabilities and thus brings down your net worth.

What is net worth?

Net worth is the difference between the assets that you have and the total liabilities on your shoulders. The assets could be your home, your car, your collectibles and any other thing that is totally in your name. The liabilities, however, include the loans and debts that you have not repaid yet. The difference between the two decides whether or not you are rich.




How do celebrities have such great celeb networth?

As is clear that only when you spend less than what you earn that you can become rich. The same fundamental is followed by the celebrities. You may say that they earn such a great lot that even if they spend less it will be a lot. But you must also understand that when you are a public figure and have to maintain a lifestyle you will have essential expenses in the same capacity. So apart from your essential expenses you must not spend in non-profitable ventures and in buying unnecessary stuff. According to only people who restrain their expenditure can increase their net worth from what it is at the present. Your hard earned money should not be wasted into just buying expensive items instead it must be invested to make more money.