 TITLE: What Is Net Worth? CONTENT: How Net Worth Impacts Credit\n----------------------------\nWhile your personal net worth may not directly impact your credit score, your assets and liabilities will play an important role in your creditworthiness. For example, if you apply for a mortgage, a bank may ask you to list your assets as well as your liabilities. If you have a negative or low net worth, you may not get approved.\nThe good news is there are ways you can increase your net worth.\nStrategies to Improve Your Net Worth\n------------------------------------\nIf you need to improve your net worth to get on stronger financial footing, try the following tips:\n*   **Pay down debt**. If you're carrying high credit card balances that are incurring steep interest charges, work on paying off your credit card debt. If possible, add extra principal payments to your mortgage payment every month. Your lender will likely allow you to make the extra payment automatically. You can choose the extra amount to add—even a couple hundred dollars a month can help quite a bit. Or make your mortgage payments bi-weekly. Both strategies take time off the life of your loan and reduce the interest you'll pay on the mortgage—all helping improve your net worth.\n*   **Increase your income**. Consider getting a side hustle—driving for a car-sharing service or doing consulting work—or renting out a room in your house. Any extra cash you can pour into savings or debt payments will boost your net worth.\n*   **Save more**. If you don't carry much debt, then consider adding extra to your savings every month. Whether upping your retirement savings or your emergency fund, extra savings will put you in a better position to improve your net worth—and ensure you don't get caught in a tough situation if you're hit with a large unexpected expense or worse, with not enough money to retire.\nImproving your net worth may give you the financial freedom to retire early or choose a career you love without worrying about money. Or it may give you the chance to pay cash for a new car or take a vacation every year without straining your budget. END