These 5 assets will have the most impact on your net worth

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When thinking about net worth, many people instantly jump to what they have in their bank account. However, a person’s net worth can involve much more than just money. For example, paying off your tax debt can significantly impact your net worth. After all,  net worth is equity minus debt, so eliminating debt would be a no-brainer. When your debt is paid off, then it is time to look at which of your assets could take you to the next level. Here’s a list of five of the most valuable assets that will impact your net worth. 

Owning a home

The first and probably most common addition to a person’s net worth is their home. Owning a home increases someone’s worth astronomically, and the more you pay your mortgage off, the more equity you’ll have. For instance, if you buy a home for $400,000, and have a mortgage of $200,000, then your net worth will be $200,000 just from your home. That’s a big chunk of your net worth right there!

Rental properties

On top of owning one home, you can also start branching out into owning a rental property (or a few of them!). It may seem scary to take on another mortgage at first, but it’s not so scary when you have someone else paying that mortgage for you. The rent you charge could be higher than the mortgage to turn a profit, and if you ever want to move, you have another property ready for you. Or, you can pay for this in cash and rent it out, then sell it as the value of the property increases annually.

Retirement savings

Property is definitely an important asset to hold, but also retirement savings can increase your worth. Opening a 401(k) account is the first step to this, and there are a lot of options to consider. These include if you want to have an investment account, a personal manager for your 401(k), or maybe you have one through work that you haven’t enrolled in yet (which is definitely a good thing to do). Either way, this is another way to store money (tax-free) and increase your value.


When it comes to investments, there are a lot of options to choose from. Stocks, bonds, ETFs, and crypto are just a few of the many choices. These can be stored in tax-free accounts, such as IRAs and 401(k)s. However, they can fluctuate over time minimally or drastically depending on your trading preferences, so it’s important to make sure that’s reflected when assessing your net worth. 


Like collecting things as a hobby? Why not turn it into an investment? 

Things like art, old coins, NFTs, sports cards, or wine all can be lucrative assets with the proper research. However, not every collectible is valuable, which is why an appraiser may be worth seeking out if you’re not an expert in the field. As well, the items can get lost or damaged, so if something is really valuable, it’s worth it to consider getting it insured. 

Start growing your net worth

It’s never too late to start investing in yourself. Whether it’s buying your first home, opening your 401(k) account, or starting to go through your attic for collectibles, no time is better than now to increase your value. Prepare for your future and enjoy life along the way as you add to your net worth little by little.

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