Assets Which Make You All The More Richer!
When it comes to increasing your net worth and your financial stability, you want to start accumulating assets. Assets give you something tangible that you can use to secure funds should you need them in the future. They also contribute to your overall financial profile, increasing your monetary worth. This is important when you want to do things like buy a home or secure other forms of personal financing.
Increasing Average Net Worth with the Right Assets
When you are working to establish a greater net worth, there are a few things that you can do to get started. Those on a strict budget should focus on avoiding debt and creating savings. Both of these play a role in your overall net worth and they are easy to implement into your financial profile. When you do not have any debt, you will find that accumulating assets is much easier. With savings, this can help you to avoid debt and it increases the overall amount of money that you have on hand. You can also choose investments like an IRA or 401k.
When it comes to increasing your net worth, you need assets, but you need to make sure that you are accumulating the right assets. The following are solid assets that increase net worth:
a) Primary residence: Your home contributes to your net worth and its impact increases as your equity increases. This is true for those who own their home outright and those who are still carrying a mortgage.
b) Rental properties and vacation homes: When you own additional properties, they increase your net worth at their valued amount.
c) Investments: Things like your 401k or IRA will increase your net worth.
d) Collectibles: If your have expensive collectible items and art, these work as positive assets.
Looking at New Mortgage Rate Policies
As of January 10, 2014, new mortgage policies and rules went into effect. Up to 95 percent of all mortgage loans that lenders issue are already abiding by these guidelines, but some lenders had to work to tighten up their standards. The new mortgage rules include:
a) 43 percent is now the maximum debt to income ratio
b) There are caps on all lender fees
c) If you are looking for an exotic loan, you will find that they are a lot harder to locate and obtain
d) As long as lenders are following all of the rules per these new policies and the guidelines set forth in the contract, borrowers will not be able to sue them
Your net worth is important and you want to constantly being working toward building upon it. You do not need a net worth of millions, but it should be high enough for you to secure financing when necessary. For example, when you are seeking out a mortgage, you need a good net worth. With the new mortgage rules, your net worth is even more important when you are seeking a mortgage.