Five Habits to Increase Your Net Worth

According to the Federal Reserve, the net worth of households and nonprofits rose to $86.8 trillion during the fourth quarter of 2015.

Did your net worth go up as well?

If you don’t know the answer, then you can incorporate these five habits to effectively measure and monitor your personal net worth.

1. Do the math. Your net worth is defined as assets minus liabilities. The back of a napkin is sufficient enough to calculate everything you own (assets) and subtract everything you owe (liabilities). However, it would be “cleaner” to use excel to ensure your math is more accurate. An extra zero could yield overconfidence or despair.

2. Monitor. There are plenty of resources for you to monitor your net worth. is a resource commonly used. If you would like help, many accountants and advisors also have tools to help you manage your net worth. As net worth planning becomes more and more popular, you will start to see many more helpful resources come into the marketplace over the next few years.

3. Pay down debt. You can easily increase your net worth by aggressively paying down debt. Remember, debt and liabilities are synonymous. Call it what you want, they both reduce your net worth. If you ignore the debt problem, the penalty is not only accrued interest but also a low net worth statement. “…the naïve proceed and pay the penalty.” Proverbs 27:12

4. Save More. You can save $25 per month and you know it. If you have above average income, you know you could save more as well. This is not about math. This is about discipline. Take the time and find a way to carve out 10 to 15 percent of your gross income and apply towards saving.

5. Start a business. One of the most effective ways to increase your net worth is by starting a business. This includes buying real estate. Know, however, there is risk involved. If you have done your homework, are willing to pay the price, and have sought the wisdom in the counsel of advisors (see Proverbs 15:22), then go for it!

Ok, so after implementing the five habits, time will reward your diligence and discipline. But to what end? To get richer? Of course not! Selfish ambitious is a futile journey. The purpose of building wealth in the context of God’s calling for you can have various outcomes.

In next month’s issue, I will share with you the potential outcomes of building your net worth statement as a Christian.

Continue to Rest at High Rate of Speed!

Darryl W Lyons, Author of Small Business Big Pressure: A Faith-based Approach to guide the Ambitious Entrepreneur -, Darryl is also the co-founder of PAX Financial Group, LLC. He can be reached at 210-881-5703 or

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19 Feb 2017

By Darryl Lyons