4 steps to increase your networth

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If anyone asked you how much you earn, you would give an answer to that question in a jiffy, probably down to the last kobo. However, if you get the question, 'What is your net-worth'? It would be probably be a different response such as ''Err...I am not too sure about that.'' Like I always say in the green club, calculating your net-worth is not an activity for those on the Forbes list alone. It's an activity for anyone who wants to make better life decisions and leave a legacy. I never used to think in terms of net-worth. I actually thought it was vain to think that way. It always felt like I would just be counting kobos or pennies,to be honest, until I learnt that my net-worth is a measure of my financial health. I had a paradigm shift. I shouldn't calculate my net-worth to get a bloated feeling about myself. That's not necessary. I should calculate my net worth to get a snapshot of my financial health. It's the same way you go for a health check up. You shouldn't wait till you get the symptoms of a terminal illness before you do a health check. Doctors advise you do a health check on an annual basis. That's what keeps you in check and provides a basis to let you know what symptoms you can avoid if you simply changed your lifestyle or eating habits. So ,why calculate your net-worth? Calculate your net-worth to get a picture of your financial health.  When you calculate your net-worth, you will see the result of everything you've earned and how you've spent it over time. How do you calculate your net-worth? Your net-worth is the difference between your assets (what you own) and liabilities (what you owe). If your assets exceed your liabilities, you have a positive net-worth. If your liabilities exceed your assets, you have a negative net-worth.   The truth is, once you achieve financial freedom, it won't matter anymore. You'll probably just focus on giving out all the extra away like Bill gates and Warren Buffet. However, I have since learnt that calculating .       Review assets Review liabilities Invest in income generating options Check your free lunches