How to Build Your Net Worth in Five Years

Your net worth is how much wealth you have minus your debts.

Your net worth is how much wealth you have minus your debts.

Your financial stability as newlyweds rests on acquiring wealth and minimizing debts. Your total net worth subtracts your liabilities from your assets. Accumulating wealth takes time, particularly when it comes to paying down debts and investing your money. Think of your finances as a strategy. Set a time frame such as five years and develop a plan to build your net worth over this time.

Set your goals and write them down. Young couples often have many goals such as family, homeownership and retirement. Each goal is defined by the length of time you set to it. Retirement is a long-term goal that you save for over decades. Growing your family and purchasing a home are short-term goals that you work toward over a period of several years.

Create a plan. Your financial strategy includes a list of all your debts and assets. Building your net worth is a twofold strategy of reducing your liabilities and increasing your assets. Determine the best way to eliminate your debts, such as a snowball strategy of paying the minimum payment on all debts except for the debt with the smallest balance. Focus your efforts to pay down the smallest bill first. When that is paid off, you pay down the next bill in the same fashion.

Reduce your expenses. Decide what monthly expenses you can do without, such as cable, entertainment and gym expenses. Place this money toward paying down your debts and establishing a savings account.

Build your savings. Contribute money toward a personal savings account for emergencies. Put aside enough money for three to six months of expenses. Then concentrate your efforts on paying down your liabilities.

Pay your liabilities. Make extra payments or snowball your debt reduction. Every debt you eliminate increases your net worth.

Invest in your future. Once you are debt-free, consult a financial planner to begin investing your money. The stock market, mutual funds, bonds and certificates of deposit (CDs) are just a few investment tools you can use to increase your net worth. For short-term investments, consider CDs and money market accounts to keep your money liquid and available for use.


  • Don't invest money when you are still in debt. You pay more in interest on your debts than you earn through your investments.

About the Author

Leigh Thompson began writing in 2007 and specializes in creating content for websites. She has been published online in various capacities. Thompson has an associate degree in information technology from the University of Kansas and is working on a bachelor's degree in business and personal finance.

Photo Credits

  • Jupiterimages/ Images