First and famous, before going into how to build my net worth from scratch, let’s understand what is net worth. Net worth is simply the value of all financial and non-financial assets minus all your liabilities both short term and long term liabilities. For you to build your net worth from scratch here are some tips on how to start which are helpful.

Startup an Investment

If you want to build your net worth from scratch, one of the things you need to consider is to invest. You can start up an investment with the little money that you have and increase it from time to time. Do not procrastinate on investing and choose the investment that soothes you. Another good thing with investment is that your money keeps growing even when you are sleeping. You can read wealth management companies’ reviews on to know which you can invest in.

Pay off all debts

Debts are one of the things that takes a good part of our finances. Debts do not come free, they come with interest attached. To start building your net worth, try all you can to pay off your debts either long term debts or short term debts, it could also be mortgage loan or auto loan. Once these loans are paid off, of course, the interest you would have continued paying can now be channelled as savings for you. By doing this, you are one step closer to building your net worth.

Close your Credit card account

Another step to take on building your net worth from scratch is to ensure that you do not use a credit card. Whatever is purchased using a credit card comes at a higher price because of the debit interest on using the credit card. But once you do not use this card, your purchase price is reduced at the same time giving you some change which can be saved.

Startup an emergency savings account

Make a conscious effort to save a particular amount of money consistently into this “emergency savings account”, after some time look back at the account and you will be surprised at how much you have saved.

Increase your income

Look for a legitimate way to increase your income. This can be achieved by meeting or writing to your Employer on the need to increase your income or promoting you to the next level. If this is not achievable, you can try doing some little things at your leisure time that will bring you money. By doing this, you can have more money to save or invest thereby increasing your net worth.

Be prudent in your spending

Another major way to build your net worth from scratch is to spend prudently. Making more monies or making an investment is very good but if you do not spend prudently, you will end up spending monies which should have been saved or invested.


Make a budget of how you intend to spend your money and the one you want to save. Make sure that you do not spend beyond your weekly or monthly budget. Also, limit your expenses. Deliberately cut off some unnecessary expenses or consider cheaper alternatives.

By strictly following the steps listed above you are closer to having a very favourable net worth.