How I increased My -45,000 Net Worth to Positive in 12 months
In the beginning of 2020 I had a net worth of -45,000 dollars.
My consumer debt over the years had gotten out of control, to add insult to injury I financed a brand new 2020 Subaru Forester and subleasing an expensive 1 bedroom apartment.
I lost my job after a few months into the Pandemic. FOUR YEARS at my company working 13-16 HOUR work days up to 6 days a week. Worked EVERY holiday for 2 years straight and worked every weekend for the first 8 months of employment. I missed countless family events, birthdays & celebrations. Time I will NEVER get back. (which really hit me HARD)
Time is limited and it’s priceless. I’m not getting any younger, my 20s completely flew by! I only have one mom and dad. How much longer are they going to be here? Time I could of spent with family traded for money (active income= trading time for money). Losing my job, benefits & health insurance was the biggest wake up of my life.
That’s when my mindset shifted & the research began. I spent hours a week on watching, reading and breathing personal finance content I wouldn't watch programming unless it was educational. I devoted myself to learning how wealthy people build their wealth through real estate, businesses, stocks and kept their wealth by tracking their spending, retirement accounts, tax codes, estate planning and life insurance. It wasn't until I read "The Millionaire Next Door" that majority of millionaires are self made and first generation. That statement alone changed my whole way of thinking.
How to increase your net worth
1. Tally up all your assets ( Cash, stocks, real estate) and liabilities (credit card debt, car and student loans)
2. Create a budget.
Track your spending! I created a budget spreadsheet to help me stay on track and not overindulge. Setting a budget for myself help me understand what money was coming in, expenses going out and where I could cut back.
3. Increase income.
Worked side hustles and random gigs to increased my income to build a 3 month emergency fund and make larger payments on my debt.
4. Pay yourself FIRST! Invest!
Once I built a nice nest egg I began investing 10% of my income in the stock market before I paid any bills.
Make your financial well being a priority today so you can relax tomorrow.