Have you ever tried of computing your net worth? Your net worth can tell you how well your financial situation is. It can help you on making decisions on management of your income and expenses. Net worth is the total of all your assets minus all your liabilities or in simple terms, it is the sum of all your income from your salary, businesses and other income streams minus the sum of all your debts. It is like the result of a personal balance sheet. To get your own net worth, get a sheet of paper, fold it in half then write all your money generating items on the left side and all expenses on the right side. your net worth should include the total amount of your debts. For example if you bought a new gadget for 1,000 dollars and have it in installment basis for 10 dollars a month, you should write the whole amount of 1000 dollars. Most people today have a negative net worth but some people have very big amount of net worth. Some people are buried deep in debt that they have lost their hope to overcome a negative net worth. Here are 10 tips you can follow to overcome a negative net worth. 1. Cut your credit cards in half. One of the most common reason of having a negative networth is debt and most of the time it is because of credit cards 2. Pay your bills in time. Bills especially necessity utilities are unavoidable expenses that you need to pay. However you should avoid paying late because this can incur penalties that can add up to a significant amount. 3. Keep a budget and stick to it. I have been an advocate of creating a budget and the number of posts here justifies it. Creating a budget and sticking to it can help you reach financial freedom faster. It also teaches you discipline that will help you manage your money how big or small it is. 4. It pays to live frugal. You don't have to buy the most expensive or the most shiny one. You don't have to be extravagant every time. You can still live this life in simpler ways. Try to find out alternatives, it will save you some more money and can take away your boredom too. 5. Buy things for use not for display. How often do you find yourself shocked that there are some things in your room that doesn't belong. These are material things that sometimes you buy because of hype or most of the time because of no reason at all. Buy only things that are needed. 6. Prioritize obligations. It works hand in hand with tip number 3. Sometimes you don't have enough money to spent to all your items in your budget that sometimes you need to give more priority on one over the others. In example you are paying for your child's tuition fee and at the same time you are also invited to an office party that would cost you both 100 dollars, what will you pay first? 7. Learn to say 'No'. Challenge yourself to avoid being passive. Saying 'Yes' to every invitation you are given can sometimes cost you a lot. You can also say 'No' to your vices and expensive habits. 8. Start saving and investing. If you still haven't started keeping a part of your monthly income to a saving or investing instrument, then you better start this month. Apart from the lottery winners, no one becomes rich without saving and investing. 9. Continue learning. There are a lot of information such as this site where you can learn more about making money, personal finance and money management. Just search for it or see this list I made - Financial Learning Resources. 10. Start selling. All of the previous tips are about keeping and growing earned money. The last tip is about finding ways to create other stream of income so you can add more items on the right side apart from your salary. I, myself, am into a negative net worth now but I have done the first tip already. Let's all aim a positive net worth by the end of the year!