In traditional accounting, the Balance Sheet is defined by the following equation:

Assets - Liabilities = Equity

When it comes to measuring a person's net worth, the same equation applies:

Money Owned - Money Owed = Net Worth

It is not always easy to pare down money owed.  For example, most of us take out a mortgage, because we do not have the full cash on hand to pay for our flat. The next best option to increase our net worth is to increase our money owned.  Broadly, there are two ways:

1. Increase your income; and/or
2. Decrease your costs.

Increasing your income can be done through a salary raise, higher earnings from your business, moonlighting or via passive sources such as dividends from stock ownership.  Personally, I find it harder to "play great offense", as described by Dr. Thomas Stanley in the book "The Millionaire ......