Is your balance sheet suffering? Even if you have the same income, you may find yourself blindly unaware of your balance sheet. Today’s inflationary environment is increasing our everyday living expenses and rising interest rates are increasing our nation’s credit card debt. To increase net worth comes with new challenges, and some potentially simple fixes.
For those wondering how to navigate today’s economic climate, Park City Wealth Advisors’ Founder, Morgan Lemaitre, explains: “I’ve been talking to folks about how there are only two ways to grow your balance sheet, make more money or spend less.”
This blog will dive deeper into Morgan’s advice and introduce you to some not so obvious ways to increase net worth, even in today’s economy.
Become Familiar with Your Spending Habits
There are numerous ways to approach spending less money. A great way to start spending less money is to familiarize yourself with your spending habits.
Just this week, The Wall Street Journal announced that “many people have a gap between what they think they spend and what they actually spend. This gap has widened recently as the financial and psychological effects of higher prices further strain people’s budgets.”
Due to inflation over the last year, the dollar amount of your everyday expenses has increased. While in the moment, you may not realize that your regular expenditures have increased in price; therefore, your habits may need to be adjusted.
With a better understanding of how your finances are allocated, you can modify your habits to fit your spending and savings objectives.
Optimize Your Tax Strategy
You work hard for your money and want to be taking home as much of your earnings as possible. When considering how to increase net worth, it is essential to ensure your tax strategy is optimized to the fullest.
With your unique needs, goals, and risk tolerance in mind, Park City Wealth Advisors explores, audits, and implements the latest tax regulations and deferral strategies. Our advisors create tax-optimized portfolios that complement your physical investments, such as real estate or privately held businesses.
If you find that you have missed the opportunity to strategize your taxes this season, there is more than enough time to set yourself up for success for the 2023 tax season.
Play the Long Game
Spending less money means saving more money. When setting money aside for a rainy day, you want to ensure that money is working for you. Implementing the right long term saving strategies can make all the difference in increasing net worth.
Creating a diversified long term investment portfolio spreads your savings and minimizes risk. In comparison, a long term investment portfolio centered around one theme of investments or assets can increase risk and miss out on potential returns.
Even in an ever fluctuating market, once you set your long term investment portfolio, it’s important not to make emotional changes. When playing the long game, Forbes explains that “It’s especially important to choose a portfolio allocation you’re comfortable with, so that you can be sure to stick with your strategy, no matter what.”
Consult with a Wealth Advisor
Park City Wealth Advisors looks at your big picture and assesses how to build, protect, and maintain your financial legacy. In collaboration with your accounting professionals, we look at your goals, needs, and risk tolerance in combination with the current market volatility and create personalized plans with an effort to increase net worth.
Additionally, through our network of professionals in their respective fields, Park City Wealth Advisors opts for public and private investment strategies not always available to other investors.
Our team of dedicated advisors works with a diverse client base of individuals who are looking for ways to take their financial success to the next level. Start the conversation about the best ways to increase net worth today!