January 9, 2009, 7:09 am

Tricks to increase Your Net Worth Part2

by: The Financial Blogger    Category: Assets and Net Worth
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In my previous post about increasing your net worth, I mainly focused on investment strategy. This post will be more general. You will find several tricks to improve your net worth by doing simple things.

Get an accountant

The best way to make more money is sometimes to spend it 😉 There are multiple ways to leverage your money and getting an accountant is one of them.



The accountant will help you out saving time. By not filling your tax report by your own, you will be able to free up a few hours that can be used for something else.

The accountant will also be in a better position to make you save money. You may be eligible for several tax credits that you don’t know. You may forget to us your 2008 capital losses against your 2005 capital gains (in Canada, you have the possibility to use capital losses against capital gains up to 3 years in the past and indefinitely in the future).

Save on energy

Power always been a major issue and should take more and more of you budget. Therefore, buying energy efficient appliances, electronic thermostats and hybrid cars will result into major savings. I was able to reduce my electricity bills by 10% simply by changing my thermostat and dropping the eating by a few degrees at night and while we are at work.

Develop Savings Habits

I was once unable to save money trough the classic monthly automated deposit into a savings account method. I don’t know about you, but I always had a good reason to take back the money I saved for “unexpected” and “absolutely relevant” expenses.

This is when I decided to buy an asset (a land at that time) with a personal loan. If you can afford a $250 monthly deposit, you can afford a $250 monthly payment on a personal loan. With interest being very low, you might be able to find another way to invest this money and make more than the interest charges. I know… it is leveraging but it worked in my case. So I am not telling you to take a low and investment it anywhere. However, you should consider this method to save money aside.

That’s it for now. Still have more ideas to come next week, have a great weekend!

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Comments

I tried reading part 1, but all I got was:

st1\:*{behavior:url(#ieooui) }
–>

by: The Financial Blogger | January 9th, 2009 (5:57 pm)

that is strange….
I just tried and I got the right page.

Does this link works?
http://www.thefinancialblogger.com/tricks-to-improve-your-net-worth-part1/

thx!!

Mike

Mike,

It works at firefox but not in IE6 or IE7

kimmo

I’m an accountant so I definitely agree with you!
It’s sad but many people don’t see the benefit of hiring a professional – they only see the money they spend and not the potential savings in taxes and their time.

by: The Financial Blogger | January 10th, 2009 (7:20 am)

TSrump,

I have an accountant since I started working and I never considered that I was paying them 😉 The money that I save every year is way beyond his cost !

As far as the accountant – absolutely! Just make sure that they are actually saving you more than they cost. For geeks like me I did this to learn what they were doing then I do it myself for a few years until my life situation changes a little, then hire one for another year or two.

I was in the same boat for saving, my wife and would literally pull savings for some reason no matter what. Eventually we decided to start our dream business (breeding arabian horses) which we put 50% of our income in for 6 years to start it up. While that business is now nearly cash flow even and growing the best part is we’ve learned to live of 50-60% of what we make.

-Bill

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