Which of the following would increase your net worth (all else the same)?

Question

Quizplus · Accepted Answer

Paying down your mortgage with excess cash flow would decrease your liabilities (i.e., mortgage debt) and increase your equity in the home, which would increase your overall net worth. Getting a salary increase would increase your income but may not necessarily increase your net worth if you don't save or invest the additional income. Selling your condo would depend on how much you sell it for relative to what you paid for it and any outstanding mortgage or other debts. Buying a recreational property would increase your assets but also increase your liabilities if you take out a loan to finance the purchase, so it may not necessarily increase your net worth.

Which of the Following Would Increase Your Net Worth (All