What is the best way to build net worth?

Question

What is the best way to build net worth?

Answer 1

Make a lot of money! Real estate and businesses.

Answer 2

Always spend less than you make. People are presented with opportunties all of the time, but must pass because they have no money.

Answer 3

Slowly and carefully.

Answer 4

Work hard to get the best income you can get.  And avoid spending money unnecessarily.  Which includes borrowing money for consumption purposes.

When you spend borrowed money on your living expenses.  Then you end up paying more for everything because of the additional interest payments on your loans.

Once you have accumulated substantial savings.  Then you can use your money to make more money by taking prudent investment risks in the stock market and/or any other markets that you feel comfortable with.

Starting a business can also be a good way to build net worth.  But it's not for everybody.   You need to be good at it in order to succeed.  Because most new businesses eventually fail.  And their owners loose money.

Answer 5

Spend less (preferably a LOT less) than you earn and invest the excess in a diversified portfolio of stock and bond mutual funds.  If you start early enough, this simple method is virtually guaranteed to produce significant wealth over time.

Sometimes the simplest advice is also the best.