Assets that Increase Your Net Worth

 

Assets that Increase Your Net Worth

Buying assets that increase your net worth is a key strategy to building wealth. There are nearly endless assets that you can buy that will help you increase your net worth. I’ll narrow it down to a few of the more common ones that the average person has access to and can invest in.

Stocks and Bonds

Probably the most common and the one that people think about most readily is the stock market and the various investments that one can buy within it. You may already have investments in the markets if you have an employer sponsored retirement plan such as a 401K. If you don’t you can still start investing in the markets by setting up a taxable account with a major brokerage firm such as Fidelity or Vanguard.

Investment choices are endless as is the style of investing that you want to do. Buy and hold to day trading. Low risk to high risk. And everything in between are possibilities. How you choose to invest, what you choose to invest in, or whether or not you hire a professional to manage your investments or you do it yourself are all things that you’ll need to consider. Regardless, one of the most common and easier ways to increase your net worth are through the investments that the markets offer.

Real Estate

Real Estate investing isn’t for everyone, but if you want to make the leap, then real estate can offer a huge net worth boost. Not only will you be collecting rents, but you will also enjoy the appreciation on the property and receive many tax advantages not offered on other forms of investments.

Like stocks, the choices in real estate investing are nearly endless. You can buy single family homes and seek quality long-term tenants. Perhaps you want to buy vacation homes and host guests for one weekend or week at a time. You could buy commercial properties and rent to small stores or offices. Maybe multi-family apartment complexes are of interest. Even a self-storage facility qualifies as a real estate investment.

Real Estate will be a much more hands on type of asset to manage than owning stock, so you will want to educate yourself and prepare as much as possible. There are endless books, videos, and websites on the subject. I recommend checking out Bigger Pockets as a place to start. Done correctly, real estate is a great asset that will increase your net worth.

Collectables

This is admittedly a broad category, as collectables can include anything of value from things like stamps or coins all the way up to classic muscle cars. Obviously, some collectable items are more within reach than others. The average person will have a much more time collecting coins than say acquiring a rare art collection for instance. But many things can be a collectible item. Often, it can be an item that you wouldn’t think of as valuable. You may have some valuable items now and not even know it. If you have old toys from your childhood, or if you have inherited items like old baseball cards, magazines, or anything else unique and unusual, then it may be worth your time to have the items independently appraised.

Value my stuff is a paid for appraisal service that will appraise nearly anything that you ask them to. You may choose to sell your valuables, hold them in hopes that they will increase in value over time, or add to your collection. Whatever path you choose, collectable items can be another asset to increase your net worth.

Conclusion

There are nearly endless ways to invest that will help you increase your net worth. This article touched on a few of the main ones. The main takeaways are to invest in items that increase in value over time, produce regular income, and have marketability to sell or trade. Investing in these types of assets is one of the easiest ways to help increase your net worth. What other things are you investing in to increase your net worth?

Read Also:

Do You Know Your Net Worth? Here’s How to Figure It Out

Average Net Worth by Age

How to NOT Protect Your Net Worth

5 Reasons Why You Should be Investing in Real Estate

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