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What if you could increase your net worth by a whopping $100,000 in the next five years?

How could that kind of money change your life? What would an extra $100,000 mean for you, your family and your dreams?

Although increasing your net worth by that large of a number may seem like an impossible dream, the fact of the matter is that it can be done – even for the average person or family with an average income.

By taking advantage of a combination of the steps below, you can easily have an increase in your net worth of $100,000 – or even more – in a mere sixty months.

Here are some tips for helping you grow your wealth by $100k in just five years:

Pay $500 Extra on Your Mortgage Each Month

By paying an extra $500 toward the principal balance on your mortgage every month you automatically – without even accounting for real estate growth – increase your net worth by $30,000 over a 5-year time span.

Take advantage of the wealth-boosting power that comes from paying off your mortgage early and you’ll increase your net worth by tens of thousands of dollars in a relatively short period of time. Worried about the tax write-offs that come with mortgage interest? Put the money you were paying in mortgage interest toward a worthwhile charitable cause instead and get that same tax write-off by doing good for a cause you believe in.

Increase Your Savings Rate

Increasing your savings rate really isn’t as difficult as it seems to be for most people, yet the average American puts less than 5% of their income into a savings account. Rule number one for increasing your monthly savings rate is simple:

Pay Yourself First

After you develop a habit of setting aside a certain percentage of your paycheck into savings each week, you can increase your savings rate even further by implementing a challenge everything budget, which will help you to decrease expenses wherever possible and give you hundreds in extra cash to put into savings or investments. Some realistic tips for cutting expenses and increasing your savings rate can include:

  • Dumping cable: $60-$120 a month
  • Skipping restaurants: $75-$200 a month
  • Bringing lunch and coffee from home: $200+ a month
  • Learning to cut grocery costs: $200-$500 a month

By cutting costs in just these four areas alone, you can save at least $300 a month to add to your savings or investment account. Multiply that $300 a month times 60 months, and you’ve just increased your net worth by $18,000, not including interest earned. Add in an interest rate from investing that $300 a month of 5 percent, and the value of your additional savings will add up to over $20,000 in just five short years. If you don’t have an investment account yet, check out TradeKing as their trades are only $4.95 compared to other brokers charging around 10 bucks a trade.

Increase Your 401(k) Contributions

For the tax year 2016, 401(k) participants can contribute up to $18,000 per year ($24,000 if they’re age 50 or over) to their employer-based 401(k) retirement plan.  If you go with a 15% of your income increase for retirement savings (up to the maximum allotted) that’s $6,000 for those making $40,000 a year.

A 5 percent rate of return on that additional $6,000 a year into your 401(k) investment will yield a nearly $34,000 increase in your net worth over a 5 year period.

If your salary is $60,000 a year, you can increase your net worth by over $51,000 in five years with that same 15 percent 401(k) contribution increase and a 5 percent rate of return.

Add in an employer match to your contributions and expect an even bigger growth in your next worth number. Choose to start living on less and investing in your future by increasing your 401(k) contribution amount today.

Invest in Income-Generating Assets

Income generating assets can come in a number of different forms. You can:

  • Invest in dividend-paying mutual funds
  • Purchase real estate through a crowdfunding site like Fundrise
  • Start or invest in a business
  • Open a high-yield checking or savings account

Or invest in any number of passive income sources. And the great thing about passive income is that, depending on the source of passive income, it has the potential to take up very little time and effort on your part once the ball gets rolling.

By earning just $300 a month through passive income sources, you can increase your net worth by $18,000 over a 5-year period not including investment returns.

If you were to do each of the 4 steps listed above, you would have an increase in your net worth of over $102,000 after just five years!

$30,000 – Paying down your mortgage
$20,000 – Cutting expenses
$34,000 – 401k contributions
$18,000 – Income generating assets
$102,000 Total after five years

If your income is higher and/or you can put more money in savings, more money into your 401(k) or pay a bigger additional principal payment toward your mortgage, you can expect an even bigger net worth growth after 5 years.

As you can see, there really are many ways to grow your net worth exponentially in a relatively short period of time. By working to incorporate the 4 wealth-increasing steps listed above in ways that work for your individual financial situation, you too can increase your net worth.

What can you do in your individual situation to reduce debt and grow your net worth? How much can you afford to increase your 401(k) contributions by? Where can you reduce expenses and increase your personal savings rate? How much in additional monies can you contribute toward reducing your mortgage each month? What skills do you have that you can turn into a profitable side business for yourself?

By assessing your individual personal financial picture and working to determine how you can take steps to grow your net worth by using the ideas above, you have the ability to reduce financial waste and increase your wealth quite quickly.

Want to know your net worth? Check out Personal Capital which will pull in all of your accounts so that you can see exactly what your net worth is in real time. Then you will be able to track it as well to see how close you are to hitting your net worth goals.

What steps can you take from the list above to increase your net worth? Where can you cut expenses and save more?