What is Your Net Worth and Why is It So Important?

RICH PEOPLE FOCUS ON THEIR NET WORTH.

Poor people focus on their working income. The most common question asked is “how much do you make? inch not “how much is your net worth? inch. I am making general statements about poor and rich people throughout this article. I am just talking about money here, nothing else and the statements are general. I don’t want anybody to consentrate I believe that poor people don’t have value and rich people are all that. Let’s just focus on it meaning what kind of money you have. Most of us were designed to think that you “have to work hard for money”. No question, working hard is important but working hard alone will never make you rich. How do i know that? I take a look around at all the people I work with. Most of them are hard workers and I have been working with them for years. There are billions of people who slave away, working their tails off all day and even all night long. Are they all rich? In the book, Millionaire Mindset, it’s called Parkinson’s law:

“Here’s what is normal in our society. You have a car, you bring in more money, and you get a better one. You have a house, you bring in more money and you get a bigger house. In general, as income comes up, expenses almost invariably increase too. inch

That is why income alone will never create wealth! Think back to when you initially started working. How much were you making then compared to now? Do you have any more money in your pocket now? How about your savings? Poor people struggle just to settle the debts and get household goods. Time to create a change. It’s time to increase your net worth. how much is busta rhymes worth

HOW TO INCREASE YOUR NET WORTH

The truth measure of wealth is net worth, not working income. Net worth is the financial value of all you could own subtract your debt. Today, a large percentage of people probably have a negative net worth. With the growth of credit cards and jobs being tight many more people are declaring bankruptcy. Stop thinking that the only way to become wealthy is to be paid more for your job or working more jobs. There are four net worth factors — income, savings, investments and simplification. Working income is important because it gives us more money to save and invest. Simplification means changing yourself to create more cash. Maybe it means giving up that expensive coffee everyday and taking that money and investing it. You won’t have to think long about something you get often you don’t really need, right? I am sure Donald Trump doesn’t think at the end of the day “wow, I worked 12 hours today, think of how much overtime I will get paid? Start thinking like a rich person to check out more ways to create income. When Donald Trump went insolvent did he look for a job? I am sure there are many companies that would have loved to rent him, right? No, he looked for investments and ways to replicate his wealth. The best way you can generate more cash without trading dollars for time is to start your own business. The tax reductions just for having a home based business are worth it. You can create wealth apart from your day-to-day job by investing just a few hours a day.

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