With the cost of living increasing every year and salaries seemingly being less adequate, it’s ideal for individuals to find more ways to make more money and build their net worth. An increased net worth can allow you the financial freedom to retire early, build your dream home, buy the car you’ve always wanted, or start your own business.

Over the past few years, there has been a surge in the number of platforms that can give you a means to supplement your income. Most often, these methods can be done remotely, making them both convenient and cost-effective.

If you aim to double your net worth in 2022, then you’ll need to be aware of the methods available for you to try and to boost your knowledge. This will set the foundation for your financial planning and get you started towards your new worth goal.

Here are a few strategies you can use to build more wealth and increase your net worth this year:

Earn Passive Income

There’s a high potential for earning passive income in this digital era because the internet has made it possible to make money online thru various means. Passive income is defined as money earned that doesn’t require much labor or participation on your part. The income is generated and grows after your initial setup, later growing organically through various market factors

One method of building wealth thru passive income that’s gaining popularity over the past few years is forex trading. Due to the pool of knowledge on how to trade and invest courtesy of people who have been in the business for a long time, getting into forex has become more accessible to everyday people. You can begin by using online resources to learn more about how forex trading works to so you can start trading foreign exchange currencies. Additionally, you can choose to invest in business stocks and shares that could gain value overtime.

If online is not your forte, there’s still the traditional route of earning a passive income by being a real estate landlord and renting out property. This involves buying or renovating a home and renting it out to tenants. Trading, investing and being a landlord can prove to be lucrative ways to earn passive income if you do the research and find the method that best suits you.

Diversify Your Income Stream

Aside from getting a passive income, you can also earn extra thru more active means by offering your skills. Like with passive sources, this option can work with a remote setup, but it requires more effort on top of your current main source of income. This is also why it’s commonly referred to as a ‘side hustle’ by some people. The side hustle is your secondary income to supplement your primary means of earning an income.

There are boundless options for creating a side hustle, most of which are dependent on your skills, talents or the hobbies you’re good at. For instance, you can create an educational course based on your teaching skills or teaching English and transcribing online. Other side hustle ideas include using e-commerce platforms to sell products that you can make, or selling stock photos to small media agencies.

Another choice is to make original online content (without using copyrighted materials) so you can monetize your videos. Again, you can get ideas on what your channel should be about by simply figuring out what you have to offer to viewers through your own interests.

If your YouTube channel becomes largely successful and generates enough revenue, you may even have the opportunity of making it a part-time job and even start a small business or brand surrounding it.

Start Paying Off Your Debt

Your net worth is defined as the total value of the assets you own but subtracting the liabilities you owe. Due to this owing aspect, paying off your debt is a vital component to stabilizing your funds for the future and then start doubling net worth.

These debts can be student loans, credit cards, bank loans and every financial liability with attached interest that substantially holding your income in a bind. You can achieve this by selling off some of your assets, reducing your spending while increasing the amount you put into your savings.

Alternatively, you can think about getting assistance for debt consolidation. This involves taking out one loan to repay off your loans that have become debts. The loans are then combined into a larger singular payment to a financial institution or online lender.

Consolidating your debt can also lead to a better credit score and an overall healthier financial status. This will give you the confidence and financial flexibility to begin implementing your preferred strategies to increase net worth and wealth.

Conclusion

Increasing your net worth has become an achievable goal, thanks to the accessibility of the internet, online platforms and shareable knowledge on how each wealth building process work.

Your best bet in doubling your net worth this year is mainly focused on trading, investing, renting out property and working on an online side hustle. If successful, these approaches can be the extra funds you generate on top of your primary income.

In addition to this, you’ll eventually need to pay off any debts you have to get a shot of increasing your net worth. This is so that there are no liabilities in the way keeping your money tied up to what you owe.

All of these strategies begin with researching and consulting experts about the best practices and how they all work. Doing this can take you a step further to your financial freedom goals and building wealth for yourself this year and in the future.

Source: Plato Data Intelligence: PlatoData.io