Overview of 10 Ways to Massively Increase Your Net Worth in One Year (Median Salary)
This BiggerPockets Money episode breaks down realistic ways to boost net worth quickly, especially for people early in their wealth-building journey. Mindy Jensen and Scott Trench explain that doubling net worth in a single year is usually not about getting lucky in the market—it’s about increasing savings rate, lowering taxes, automating good habits, and finding ways to earn more. The advice is geared toward median-income earners or those with relatively modest net worths, where a single year of strong execution can make a dramatic difference.
The Core Framework: What Net Worth Actually Is
Net worth is simply:
Everything you own minus everything you owe
That means you can improve it by:
- Saving more cash
- Buying assets that grow over time
- Reducing debt
- Cutting taxes
- Benefiting from asset appreciation
The episode emphasizes that the fastest path usually comes from behavioral leverage, not mysterious investing tricks.
The 10 Ways to Increase Net Worth Fast
1. Cut fixed expenses
The hosts argue that fixed costs are the biggest budget killers:
- Housing
- Cars/transportation
- Subscriptions
- Insurance
- Utilities
Best practices include:
- Choosing cheaper housing than you technically qualify for
- Getting roommates or downsizing
- Avoiding car ownership if possible
- Buying a used paid-off car if needed
- Raising insurance deductibles if you have savings to absorb risk
2. Reduce variable spending
Variable expenses include:
- Groceries
- Restaurants
- Clothing
- Entertainment
- Convenience purchases
Tactics include:
- Cutting one category by 5–10%
- Shopping sales
- Cooking at home
- Putting friction between yourself and impulse purchases
- Avoiding lifestyle creep while still preserving enjoyable social activities
3. Use a tax-advantaged investing order
The episode recommends a clear order of operations:
- Get the full employer 401(k) match
- Max HSA if eligible
- Max 401(k)
- Contribute to Roth accounts
- Invest in taxable brokerage accounts
This boosts savings rate while also reducing taxes, which makes every dollar more powerful.
4. Build and review a real budget
A budget only works if you review it regularly. The hosts stress:
- Tracking every transaction
- Knowing where money is going
- Comparing spending against goals each month
- Adjusting categories as needed
Budgeting is framed as a control system, not a punishment.
5. Automate saving before you see the money
A key principle: save first, spend what’s left.
Ideas include:
- Directing part of your paycheck to a separate account
- Automating transfers into savings/investments
- Removing the temptation to “accidentally” spend money before saving it
6. Invest accumulated cash in long-term assets
Once savings are available, the next step is to put them to work. The episode favors:
- Broad, low-cost index funds
- Real estate for those who understand it and want that route
- Factor tilts for investors who intentionally choose them
The warning: don’t invest based on hype, social media, or meme-stock enthusiasm.
7. Research your true market compensation
Before trying to earn more, know what you’re worth:
- Look up current market pay for your role
- Find out if you can earn more by switching jobs
- Understand what jobs you could realistically get in the next 90–180 days
The hosts note that many people don’t actually know their market value.
8. Have a strategic career conversation with your boss
Rather than demanding a raise, the episode recommends setting up a professional development conversation:
- Ask for feedback
- Ask what it would take to earn more
- Discuss a 1–2 year promotion path
- Get written guidance if possible
A useful tool: keep a “praise folder” with positive emails and feedback that can support a future raise or promotion case.
9. Make side bets on income
For people early in the journey, side income can be a major accelerant:
- Side hustles
- Small businesses
- Tutoring
- Gig work
- House hacking
- Renting a room
The key is to keep startup costs low and test ideas cheaply, since many will fail before one succeeds.
10. Use leverage from early-stage momentum
The episode’s broader point is that early wealth building is often about stacking small advantages:
- Lower fixed costs
- Better tax treatment
- Automated savings
- Smarter investing
- Incremental income gains
Together, these can produce outsized net worth growth in just one year.
Main Takeaways
- Net worth grows fastest when you increase savings rate and reduce taxes.
- Fixed expenses matter more than coffee-level frugality.
- Budgeting and automation create consistency.
- Income growth usually requires deliberate action, not waiting for a raise.
- Side hustles are especially useful early on, when small wins compound.
- Investing should be intentional and long-term, not hype-driven.
Practical Action Items
If you want to apply the episode’s advice, start here:
- Review housing, transportation, and subscription costs
- Set a monthly budget and track every transaction
- Automate savings and retirement contributions
- Follow a tax-optimized investing sequence
- Research your market salary range
- Schedule a career conversation with your manager
- Test one low-cost side income idea
- Invest consistently in long-term, diversified assets
Bottom Line
The episode’s message is that massive net worth growth is possible in a year, but usually only when you combine disciplined spending, tax efficiency, automation, and income expansion. It’s less about luck and more about creating a system that forces money to accumulate.