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How do you fix a broken net worth some of you guys out there you may have a no net worth currently you may even have a negative net worth meaning you have more liabilities than assets today i’m gonna give you guys five steps on how you can fix this i cannot wait to share this with you guys today good day subscribers thank you so much for joining me today i am jeremy
This is a financial education channel where we talk personal finance entrepreneurship and the stock market and today we’re talking about how do you fix a broken net worth guys i’m gonna give you five steps to do that now what is net worth a net worth is basically your assets versus your liabilities and if you have more assets and liabilities and you have a positive
Net worth if you have more liabilities than assets meaning more debt and those kinds of things then you actually have a negative net worth guys now some of you out there my younger subscribers you might not have very much of a net worth built at all some of you might even unfortunately have a net worth that’s negative right now because you have more debt than you
Have assets so we’re gonna talk about this guys how to build it how to fix it if you like this video today hit a thumbs up and leave me a comment if you have anything to add i would love to hear what you guys have to say let’s get into this so number one thing on how to fix a broken network is you need to stop adding liabilities you have to stop adding liabilities
Liabilities is what hurts your net worth overall guys so if you keep buying new things all the time then that’s just adding more liabilities you know especially if it’s things that just depreciate like maybe buying new cars all the time those kinds of things guys you know a lot of people think you need to have this i had that as far as liabilities and you really
Don’t you don’t need a new car every two to three years you know you can drive your car for five ten years down the road you don’t need to get a new car all the time so many people think oh i need to get a new smartphone every year and you get a smartphone every new year there’s millions of people that get new smartphones every single year they upgraded a new one
And a new one and it’s just adding another liability because in a couple of years that smartphone’s gonna be worth nothing guys so you guys stop adding these my abilities to your life a lot of people will say things like oh you know what i make money from my phone because i know i’m a salesperson or whatever so i need to have the the best phone or whatever no yeah
If you have a iphone 6s and by getting iphone seven you’re not gonna suddenly make more money you’re gonna make the same amount of money there’s nothing that’s gonna upgrade you somehow to make more money same thing you’ve you had the samsung or whatever kind of phone so so many people buy new phones every year and really they just wanted to have the hottest phone
Out there or they’re brainwashed to think somehow that’s gonna bring me more money when it’s not really so you’ve got to stop adding all these different liabilities to your life that’s key number one if you want to fix your net worth stop adding liabilities number two you got to get rid of any non necessary liabilities an example of a non necessary liability is
Something like maybe you have an old car that’s paid off right and you don’t really need that car you just like having it around you drive it every once in a while or whatnot you think it’s not really a liability to me because it’s already paid off you know i own that car it’s absolutely a liability because every day you have that car it becomes worth less money
Also if you have that car and you drive around every once in a while you need to have auto insurance that’s probably an extra 50 to 100 bucks a month your pain and auto cert insurance for that car you also need to pay for the maintenance of that car oil changes all these kinds of things guys this all adds up and that is how you get a liability another thing of
You know non unnecessary liabilities would be so many of us americans specifically we have so much crap in our homes and apartments that we don’t need that we either hardly use or we almost never use and we have so much crap that either we have to buy even a bigger home or bigger apartment to store all this crap or you have to buy self storage you know how many
Millions of people out there pay for self storage every month 100 200 300 bucks just to store crap that is basically worthless it’s basically a bunch of worthless crap that they’re just hoarding just keeping thinking it’s worth value no you’re better off just selling all that junk at a yard sale and then you can actually downsize the size of your home or apartment
Pay a lot cheaper prices you’re gonna be able forge your home or apartment a lot better then you’ll actually be able to save on bills because the bigger home or apartment you have guess what the more you have to pay an electric and all those kinds of things in insurance because you have a bigger place all these kinds of stuff guys so there’s just there’s literally
Tens of millions of americans out there that literally just hoard stuff that they think oh man well maybe one day i’ll use it and they never even use it guys imagine how many bikes are piled up in people’s garage and those people never even ride bikes or they got their kids bike still in their garage and heck they’re their kids like 17 18 years old now and they never
Ride their bike anymore they drive their car around so you’ve got to get rid of non necessary liabilities guys as a thousand different things we go into it at that subject alone number three you’re gonna start making your money into money so hopefully you’ve got some excess money at the end of your paycheck or at the end of your your month if you own a business
Or something like that you’re gonna make that money into money somehow so if you’re a conservative person you may just want to have a cd account something like that where you earn two three percent interest a year or whatever a long-term cd account or savings account where you even earn less interest if you’re a little more aggressive but still not really that
Aggressive you can do something like investing in an etf which just basically stocks however much lower down the stock market goes is how much up or down your money goes you can you know have etfs those kinds of things index funds you could be invest in or you can be a little more aggressive like i do and be a stock picker where you actually research companies
And you try to put your money in the best position to get a hopefully a 10 20 30 percent gain every year that’s what i do personally with my money but not everybody’s fit to do that and i understand that completely not everybody wants to put in the work or do the research those kinds of things and that’s fine but you’ve got to find a way to make your money into
Money because if you’re not making your money into money it’s just sitting there on the sidelines what good is it you’re actually that money is becoming less every year because inflation goes up so every year the dollar is probably worth a little less than it was in the year before and a little less than next year so you’ve got to find a way to make that money into
Money and that’s how you can really build up your net worth guys number four you got to make more money you kind of make more money you know by making more money in as long you’re not spending a bunch more liabilities if you’re making more money then that’s more money that comes in to you that you can either put towards savings account put toward a cd like we just
Talked about put toward an index fund etf or stock picking in those kinds of things so that if you can just find a way to make an extra five let’s say ten thousand a year that doesn’t sound like a huge amount of money but if you just make an extra five ten thousand a year and that money is going toward that you know making you more money that adds up to a lot of
Money over twenty thirty forty year span guys it’s a massive amount of money now how you do this is you got to ask yourself in your current workplace is there a chance a realistic chance out within the next year to you can get promoted to get a better job is there if there’s nothing you got to either find a better job that you can make more money yet or you gotta
Think about starting your own business where you can be successful at starting your own business and if you need help starting a business i have like at least 2030 videos on this channel where you can look into how to start a business and how to grow of your own business and those kinds of things i’m an entrepreneur you have tons entrepreneur tips on this channel
So you that’s how you got to think you gotta think i need to make money somehow more money than i’m making now so i can increase my net worth at a much more rapid pace than if you’re just stuck in that same job and doing it for 10 20 years guys and you’re not making any more money next one up last one step number five is you’re going to make passive income somehow
This is something i didn’t do and tell basically the past year passive income i have a great video on if you guys want to check that out if you haven’t already checked it out ten ways to make passive income online passive income is basically when you create something in the past and you can make money for months or years into the future with basically minimum or
No effort at all guys it’s a beautiful beautiful thing i make passive income like i said i didn’t make passive income for a long time i now make passive income from this channel i have videos on this channel that make me a hundred fifty two hundred bucks a month one video we’re talking one video you know some of my better videos like the stock market for beginners
And those types of things bring in 150 bucks a month just from one video one video that’s how you can really make passive income every beautiful thing about passive income is many times you can make passive income through doing a hobby for since this channel is my favorite hobby it’s my hobby it’s what i do i’d love to do it i would do it even if i wasn’t get paid
Wasn’t getting paid at all i did it when i was a kidding paid at all so see they say you’re a photographer you could maybe start a website that you know shows off all your photography or whatever you do maybe you a photographer for lates you go all around lakes all around the united states and that’s like your hobby you take pictures of lakes all around the united
States well guess what you can start a website and as long as you know seo and those kind of kinds of things when people want to look at pictures of lakes your website will pop up and then you can sell google ads on that and you can bring an income – as for something that you would do don’t matter what but now you actually get to make money from it for photos you
Might have taken years ago things like them there’s like i said if you want to really check out passive income watch that video because i go into a ton of different ways you can make money on it and it’s awesome guys it’s awesome to be able to create something that you create no matter what and you can make money from it for years to come guys it’s a beautiful
Beautiful thing so passive income very powerful find a way to make passive income do it it’s absolutely a phenomenal thing guys i hope this helped tremendously today in understanding five ways you can fix a broken network let me know if you guys have any more you know steps that you think i may be sure to include in this video that you want to say i would love to
Hear from you guys in that comment section if you came across this video and not subscribed yet you may want it we talk personal finance in the channel talk entrepreneurship i’m an entrepreneur and give a lot of my business tips out and we talk to a stock market and how to make your money into money the most in this channel thank you for watching guys and have a great day
Transcribed from video
How to Fix a Broken Net Worth! By Financial Education