THREE PRACTICAL WAYS TO INCREASE YOUR NET WORTH

If your out-go exceeds your in-come,
your upkeep will be your downfall.— Unknown


Here are three practical (i.e., boring) ways to increase your net worth.

1. Save More (Spend Less)
   
2. Earn More
3. Invest Better

Save More
The best technique is to "pay yourself first". Have a portion of your pay (e.g., 10%) deposited into a savings vehicle from which withdrawals are more difficult. You're less likely to spend money you don't see. Similarly, you can save a salary increase (or a portion of it) instead of spending it.

For those who don't payoff their credit card balances each month, an idea to pay for everything with cash. You keep one credit card for emergencies and cut up the rest. Put this credit card in a metal can, add water and freeze. Why? If you're tempted to make a purchase, you'll have to wait until your card thaws. By then, the urge to spend may be over. Why the metal can? So you can't use your microwave oven to reduce the wait time.

Earn More
You can increase your income by learning more and applying what you learn. I listen while driving in my 'university on wheels'. Traffic jams are no longer annoyances. They're an opportunity to listen longer ;)

Learning is also a strategy for remaining employable in the uncertain days ahead. Learning doesn't have to be in a classroom setting. You can learn plenty online for free using your favourite search engine. Blogs are an excellent --- and interactive --- tool.

Invest Better
Investing is a contentious topic. Who doesn't have an opinion or two? Relying on the advice of others over the years, I've lost money in shares, mutual funds, warrants, etc. Our current focus is paying off our mortgage while getting better educated about investing.

Interconnections
These ideas are related. Saving more and learning more help in investing better. Learning more is a form of investment. You can can the increase in your earnings from the increase in your learning.

Do you have other practical tips?

Learning From Brian Tracy Live

It's always hard before it's easy
--- Brian Tracy

Brian Tracy spoke at a corporate event earlier today. I heard part of his presentation before I was forced to leave. Brian helps people improve their lives. I know him primarily through his audiobooks. Last year, I learned that he's Canadian. You know how we complain about the weather. He actually did something ... moved to California :)

Brian was discussing ways we can make more money. Unlike many others who discuss this ever-popular topic (see Too Good To Be True), his ideas work. But take work.

Learn and Apply New Skills
Brian explained that a Mercedes car is lost on the back roads. In comparison, a rusted jalopy on the highway goes faster and further. Our mind is like the Mercedes. We need to put it on the right track.

Aside: can't someone who can afford a Mercedes buy a GPS navigator to get back on track?

We are our most important assets. The world is moving ever-faster. If we don't continue developing our skills, we aren't standing still. We're falling behind. Eventually we're so far behind that we think we're first.

Affirmations
Self-esteem is critical and ours can suffer for many reasons, starting with how we were raised as children. We can replace the negatives with affirmations such as "I like myself" and "I love my work". Frankly, I was skeptical when I learned of affirmations from his video seminar "Achieving Personal Excellence" back in 1992. I tried them though, and they work. Try your own. With enthusiasm!

Brian also taught me

• The Law of Attraction
• modeling (do what the successful do and you'll be successful too)
  

While these ideas are available from other sources, they were new to me. He explained in ways I could understand and apply.

That's It?
As I was dragged out, Brian was talking about the Efficiency Curve, borrowed from the Boston Consulting Group. As we learn, our work takes less and less effort.

What I learned didn't make leaving any easier :(