The inflation-adjusted net worth for the typical household was $87,992 in 2003. Ten years later, it was only $56,335, or a 36 percent decline – a third less!
What is net worth? It is your personal or family’s balance sheet. In other words – everything you own (assets) minus everything you owe (debts – credit card, student loans, mortgages).
What can you do to raise your net worth? I manage my net worth a couple of ways, but I’ll keep it simple. I look for ways to increase my income (revenues) and decrease how much I spend (expenses). By having a surplus, I am able to save and invest, thereby increasing my net worth.
Why? Its simple, money buys choices.
It’s great having choices, don’t you think?