Z8) How I Reached My First $100K Net Worth – Step-by-Step

 How I Reached My First $100K Net Worth – Step-by-Step

Hitting a six-figure net worth is one of those financial milestones that feels both intimidating and thrilling. For most of us, $100,000 isn’t just a number—it’s proof that our money is finally starting to work for us. Reaching it meant that I was no longer just scraping by paycheck to paycheck; I had options, security, and a roadmap to something bigger. But this didn’t happen overnight.

This is the step-by-step journey of how I reached my first $100K net worth, starting from almost nothing.

1: Learning the Language of Money

When I first started my journey, I had no clue what “net worth” even meant. I thought it was something reserved for celebrities and CEOs. But once I understood that net worth = assets – liabilities, things began to click. It wasn’t just about how much I earned—it was about how much I kept and grew.

I downloaded a simple budgeting spreadsheet and started listing everything I owned (savings, investments, car) and everything I owed (student loans, credit cards). My net worth was negative. That realization lit a fire in me.

2: Destroying High-Interest Debt

The first order of business was clearing my debt. I had a student loan balance of about $12,000 and $6,000 in credit card debt at 19.99% APR. That high-interest credit card debt was my biggest financial mistake, and I knew it had to go.

I tackled the credit cards first using the avalanche method—focusing on the debt with the highest interest rate while making minimum payments on everything else. I stopped using credit entirely, picked up a weekend side job, and threw every extra dollar at the balance. Within 11 months, I was credit card debt-free. That alone increased my net worth significantly and saved me thousands in future interest.

3: Creating and Sticking to a Budget

Budgeting isn’t fun or glamorous, but it’s powerful. I categorized my spending, slashed anything unnecessary—goodbye Netflix and frequent takeout—and set monthly savings targets. I started with the 50/30/20 rule as my foundation: 50% of my income went to needs, 30% to wants, and 20% to savings and debt repayment. Over time, as my income increased, I flipped that formula on its head. I began saving 40–50% of my income and lived comfortably on the remainder. Saving became the priority, not an afterthought, and that shift changed everything.

4: Building an Emergency Fund & Automating My Finances

Before I could invest aggressively, I needed peace of mind. So I built an emergency fund worth about 4–5 months of expenses and kept it in a high-yield online savings account. This safety net kept me from falling back into debt when unexpected expenses came up, like medical bills or car repairs. That buffer gave me a sense of control and allowed me to take calculated risks, like starting a side hustle or investing with more confidence. To stay consistent, I automated my finances so I wouldn’t have to rely on willpower. On every payday, a portion of my income went straight into my savings, another into my Roth IRA, and the rest into a low-cost investment account, while bills were paid automatically. This approach eliminated the temptation to spend first and “save what’s left,” because the truth is, there’s rarely anything left over at the end of the month.

6: Learning How to Invest the Right Way

My first few investing attempts were clumsy—I bought random stocks based on tips from friends or Reddit. I quickly realized this wasn’t sustainable. So I stopped gambling and started investing.

I educated myself on index funds, ETFs, and the power of compound interest. I opened a Roth IRA and began contributing monthly to a diversified mix of funds like VTI (Vanguard Total Stock Market ETF) and VXUS (international markets). I also used dollar-cost averaging to invest consistently, regardless of market conditions.

By year three, my investment accounts alone made up nearly 40% of my net worth.

7: Increasing My Income

Cutting expenses can only take you so far. I knew I needed to earn more. I focused on two tracks:

Career development:

I took free online courses, improved my technical skills, and applied for higher-paying roles in my industry. After two years, I negotiated a 30% salary increase by switching companies.

Side hustles:

I began freelancing in the evenings—writing content, managing social media accounts, even flipping items online. These side hustles added an extra $500–$1,000/month, all of which I invested or saved.

Every dollar earned outside my main income became a tool to grow my wealth faster.

Step 8: Avoiding Lifestyle Inflation

This step is where many people lose momentum. As soon as their income increases, so does their spending—nicer car, luxury apartment, expensive vacations.

I did the opposite.

Even when I could afford better, I stayed frugal. I drove my used car until it started falling apart. I lived with a roommate even though I could afford to live alone. I kept cooking at home and shopping at sales.

By avoiding lifestyle inflation, I kept my expenses low while my income climbed. That gap between earning and spending became the fuel for my net worth.

 9: Tracking My Net Worth Monthly

One of the most powerful habits I adopted was tracking my net worth every single month. I calculated it by listing everything I owned—cash, emergency savings, retirement accounts like my 401(k) and IRA, brokerage accounts, crypto holdings, and real assets such as my car and a small equity stake in real estate—and then subtracting all my liabilities, including any remaining debt. Watching that number climb from -$6,000 to $10,000, then $25,000, $50,000, and eventually $100,000 kept me motivated and focused. Each milestone felt like unlocking a new level in a game, and seeing my progress in real time made the entire journey feel achievable and exciting.

10: Staying Consistent and Patient

There were setbacks along the way. Market dips wiped out thousands. My car broke down. I had unexpected dental bills. But through it all, I stayed the course.

Reaching $100K isn’t about sudden windfalls. It’s about deliberate consistency—saving month after month, investing intelligently, and living below your means. The truth is, once I built the habits, everything else fell into place.

Why the First $100K Matters

The first $100,000 is always the hardest because you’re not yet seeing the full effects of compounding. But once you hit that threshold, your money begins to work harder than you do.

Let’s do a quick example:

If you invest $100,000 with a 7% return, in 10 years it becomes $196,715. You nearly double your money without adding a single dollar more. That’s the power of reaching $100K.

It creates a snowball. And once that snowball starts rolling, the next $100K comes faster. What took me nearly four years the first time may only take two years the next time.

Final Thoughts: Anyone Can Do This

I wasn’t born rich. I didn’t get lucky with a startup. I didn’t win the lottery. What I did do was stick to a plan, make sacrifices, stay disciplined, and educate myself.

You don’t need a six-figure salary to build a six-figure net worth—you just need six-figure habits.

Thanks for watching my journey to reaching my first $100K net worth! If you’re working toward your own financial goals, remember—it’s not about getting rich overnight. It’s about consistency, smart decisions, and staying committed even when it’s hard.

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Let’s grow together. Until next time—invest wisely, live intentionally, and keep going.