Your net worth I can tell you a lot of thingsbut it’s simply a way to evaluate your own financial success. Many have calculated their net worth and come to the conclusion that it needs an overhaul, but improving it can seem very difficult. However, it only takes a little guidance, a little willpower and a lot of patience.

Pay off your debt

The money you owe is money that could be used to increase your net worth. Pay off all your debts as soon as you can, but be aware of the penalties that may apply for paying early (such as with mortgages).

Consolidate your debts Taking out a loan at a lower rate to pay off high-yield debt is a proven strategy. The key here is to know what you owe and have a plan to pay it back. Make extra payments when possible and work to reduce your overall debt burden.

Maximize your retirement contributions

Many private employers offer retirement plans with desirable tax features. Other tax-advantaged accounts (e.g. a Roth IRA) are also available. In fact, many employers offer matching programs that will help you increase your contribution faster.

By not taking advantage of such programs, you are leaving money on the table. Retirement contributions create a double advantage. They postpone your taxable income to your lowest earning years and increase your available earning assets. By taking action now on your retirement, you will help slow down one of the biggest obstacles to growing your net worth: taxes.

Reduce expenses by realizing expenses

No one likes to hear that they are spending too much and need to cut back. We all know that eating out or buying the latest gadgets catches up with us, but what we don’t realize is how quickly small expenses can add up too.

Get into the habit of writing down your expenses every day for a week and you’ll be shocked at how much your paycheck is spending. The intention is not to stop eating out or give up hobbies altogether, but rather to become aware of your spending habits and identify areas where you can make adjustments; a little goes a long way.

Plus, remember that debt from step one? A large part of this amount comes from credit cards. Cutting back on your credit cards and only using the money you have available will help you reduce your spending.

Keep the money you saved where it will grow

You probably already have a savings accountbut do you use it? Your current account should be lean enough for your regular expenses and everything else should be placed in interest-bearing accounts. Better yet, invest what you can. Some people tend to be risk aversionso take a look at guaranteed investment contracts (GIC) or bond funds.

If your savings are in a coffee can on top of the refrigerator, you’re not putting your money to work and you’re undermining your hard work. By the way, resist the urge to immediately spend any windfall you may receive; invest it to ensure that you continue to reap the benefits in the future.

Buy the car you’ll drive forever

It’s almost certain that a vehicle purchased today will be worth much less a year from now. Associate this depreciation with maintenance costs and insurance premiums and you have a recipe for the real financier cost of car ownership.

Every new car you buy ultimately decreases your net worth. You can reduce the negative financial effects of automobile ownership by purchasing only the vehicle(s) you need, with the intention of driving it until it needs to be replaced.

Talk to a professional

This is the most important and yet most neglected step. People don’t want to pay to see a doctor an accountant Or financial advisor often because they are embarrassed by the state of their finances.

That said, speaking to a professional can provide you with the latest information on how to use tax relief or help you with your budgeting. Never be ashamed to ask for help and use available resources.