Single Dad Who Went From 'Drowning in Debt' to $100K Net Worth Shares His Journey Out of 'Rock Bottom' – 'Feels Surreal, Hard to Believe'

Rising costs of living and stagnant wages are making it increasingly difficult for Americans to save and achieve their financial goals. A Pew Research survey last month found that 48% of Americans have emergency funds that would only cover up to three months of expenses. However, with patience, discipline, and a long-term outlook, it’s still possible to build decent wealth even when times are tough. 

A few months ago, a Redditor shared on the social media platform how he overcame his financial struggles in about four years through disciplined saving and hard work. He said he hit "rock bottom" in 2020 after his divorce and had a net worth of negative $32,000. He was living in a one-bedroom apartment with his daughter.

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"Hard to believe I’m writing this. 4 years ago I was drowning in debt, raising my 6-year-old daughter alone," he said, adding that he was "barely" making $45,000 in his retail management job when he began his journey out of debt.

At the time of his post, the Redditor had a total net worth of about $100,400, with about $58,000 in his 401(k), $26,700 in his emergency fund, $2,890 in investments, and the rest in his daughter's 529 plan. 

The Redditor said it feels "surreal" to reach a net worth of $100,000 after facing major financial problems.

"Honestly, still paycheck to paycheck some months. But man, seeing that number hit six figures while my daughter sleeps soundly in her own room, worth every budget dinner and missed night out," he said.

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Automated Savings, Meal Preps and Two Promotions

The Redditor shared the key steps that helped him escape debt and reach a net worth of $100,000. He said he used every tax return and stimulus check to pay down his debt and set up automatic savings deductions from his paycheck. On Sundays, he would prepare meals with his daughter so they wouldn't need to eat out. The poster said he was also able to find remote work, which helped him reduce daycare expenses. He was promoted twice during this period and was now earning $65,000.

‘One Step at a Time'

He said he used the ROI app to track his savings and expenses, which "changed the game for me." His next goal is to build his daughter's college fund and save enough for a home down payment. He plans to move "one step at a time" and told fellow Redditors that "consistency is the key" to reach financial goals. 

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