Member-only story

5 Unusual Ways to Increase Your Net Worth

As an entrepreneur/business owner

Joseph Mavericks
DataDrivenInvestor
9 min readSep 30, 2022

Source

There’s a fundamental difference between rich and wealthy people. The former makes and spends money, the latter saves and invests it. This means that not all rich people have a high net worth, but all wealthy people usually do.

In purely economic terms, your net worth is the sum of your assets minus liabilities. So if you borrow $1 million to buy yourself a house and car all the while repaying your loan at a 4% interest for the rest of your life, you’re rich but not wealthy. People who live above their means by definition have a negative net worth, while rich people who spend money responsibly and look like your average Joe may very well be sitting on millions of dollars in assets and investments.

As an entrepreneur, your net worth is a very important metric to take into consideration, because it will determine everything about your financial life:

  • The freedom you have to be your own boss
  • The liquidity you have to pay yourself
  • The investments you make to build wealth
  • The margin for error you have in your business

The thing is, increasing your net worth is easier said than done, especially in times of crisis. But if it was easy everyone would…

Written by Joseph Mavericks

Living with a purpose and improving myself is changing my life — I also make Youtube videos: bit.ly/3QAEXTm

Responses (16)

What are your thoughts?