Well, if you want to become wealthy, you need to understand what your net worth is now and how to increase it later.

Most people are so concerned about their tax bracket that they fail to realize they may be making six figures but have a net worth of $0.

How is that possible?

This happens when you spend more than you make. When your liabilities (debts) exceed your assets, you are stuck with a negative net worth. And a negative net worth leaves you with nothing to pass down to your bloodline. It forces you to delay retirement and work pay check to pay check just to make ends meet.

You don’t have to live that way. 

The first step you can take to create a strategic financial solution for yourself is to calculate your net worth. This may be one of the best things you document on your wealth-building journey.

Ready to get started? Here’s a simple way to calculate net worth.

Your Tax Forms Are Not A Cheat Sheet

You won’t find your net worth listed on your W2 (year-end earnings statement from your employer). What you’ll find on your W2 is a list of all the money you earned for the year minus any taxes. Taxes are one of the greatest expenses that impact your net worth. If you can lower your tax bill, you can increase your net worth.

Write Down Your Assets

What are assets? Assets are everything you own.

Assets include checking accounts, savings accounts, money market accounts, certificate of deposits, stocks, bonds, real estate, business interests, and other assets that provide you with value in the marketplace.

The value of your net worth depends on how much money you allocate to each of the different assets. A car and home are only a small percentage of a wealthy person’s net worth.

Confront Your Liabilities

What are liabilities? Liabilities are everything you owe.

This may be a painful exercise to confront everything you owe if you are in debt but you have to be honest with yourself in order to make changes. Be real. In order to get to where you want to go, you have to know where you are. You can always go up in life if you know what it takes to get up.

A Simple Calculation

You don’t need to know calculus, trigonometry, or geometry to know your net worth. If you know how to add and subtract, you are on the right track.

Take the sum of all of your assets. Now add all of your liabilities. Subtract your total liabilities from your total assets. What did you get?

If you want to increase your net worth, you have to accumulate assets and reduce luxury liabilities. 

Here’s an example to get you started:

Do you need help calculating your net worth? Contact us to get started. We will make the process simple and easy so you can start making progress today.

Are you ready to create an extra source of income without adding another task to your to-do list?

It’s simple; start taking advantage of dividend income.

Grab your copy of “Dividends Are a Queen’s Best Friend” if you’re ready to start your investing journey today!

What are Dividends?

It’s the money that companies pay you as a reward for investing in them. Dividends give you access to a portion of a company’s earnings. If the company profits, you profit. Publicly-traded companies release their earnings quarterly and let their shareholders know if they plan to declare a dividend and how much the payout will be per share.

How Do You Earn Dividends?

You have to invest in companies that give dividends to their shareholders. If you want to invest in companies that have a track record of giving dividends, take a look at the dividend all-stars. These are elite dividend stocks with years of dividend increases. Two examples of dividend all-stars are Walmart (WMT) and McDonald’s (MCD).

Is Dividend Investing Risky?

It’s risky if you don’t know what you are doing. Talk to a financial coach who specializes in dividend investments to mitigate your risk. I’m here for you if you need me! 

Dividend stocks aren’t as risky as conventional stock investments; it gives investors the flexibility of safety and growth. It’s like a hybrid investment. You get to enjoy the benefits of stock growth while earning monthly or quarterly income in the form of dividends.

Typically, if the price of a stock falls, the company will still pay out a dividend. Companies know that they may lose investors if they cut the dividend so that is an incentive to keep the dividend going. Companies don’t want shareholders selling shares of stock so they will do whatever it takes to keep investors happy.

Benefit from the Hard Work of Employees

Do you want to become a boss without adding on any additional responsibilities? Become a shareholder. You may not get the corner office with the window view, but you’ll be able to fly anywhere around the world and create your own scenery.

Employees of a corporation work hard to make you money so you can have more time to do the things you love. Working women work hard. Wealthy women work smart.

Gain Access to Dividends With $100

You don’t need thousands of dollars to benefit from dividend investing. Every step you take counts. If you start with just $5, you’ll grow your money and knowledge so that you can invest more.

When you’re ready to start investing, all you have to do is open a brokerage account. I opened a WeBull account in 2019 to test out the functionality and I love the paper trading competitions and resources! You also get two free stocks when you open an account! 

Learn more about WeBull here and claim your free stocks. 

Start your dividend portfolio as early as you can. The earlier you start, the more time you’ll have to grow your money. When you enhance your investing skills and work with someone who can do all the research for you, you’ll have additional funds available to pay your monthly expenses, travel the world, retire early, and live a life on your terms.

Ready to Learn More about Dividend Investing?

Grab your copy of “Dividends Are a Queen’s Best Friend” on Amazon. It’s the perfect book for beginning investors. Forget the intimidating lingo and have a fun, female-friendly conversation with Charlene that will give you the courage to do what you once thought was impossible.

Leave a book review on Amazon and tag @wealthywomendaily in your picture with the book!

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Disclaimer: Wealthy Women Daily is solely educational and informational, and is not intended to give investment or trading advice of any kind. Not all asset classes are suitable for all investors. Wealthy Women Daily is a research academy that provides you with the data and analysis you need to make an informed investment decision.