Question

You should calculate your own Net Worth at least once per year, probably the last time you did so was for a College Financial Aid application. What is the simplest way for you to increase your own Net Worth? How much do you think your Net Worth will change in the next year and why?

Answer 1

Financial independence is most vital for any person. So finding out your net worth must be regular exercise.

There is no shortcut to increasing your networth. One must be consistent with investment decision.

Simplest way that I can think of for increasing net worth would be to invest in mutual fund. Since it gives benefit of creating your portfolio with just one investment. However, moderate amount of risk is involved. If one wants risk free investment he can think of government bonds to increase networth.

Expected increase in networth if invested in bonds is 6%. If it is mutual fund then 10 to 15%. This rate of increase is based on normal industry trend.