How I Went From A Negative Net Worth To $40K In 5 Years

Knowing your net worth is a key part of living a financially healthy life. But being in the negative does not mean you're bad with money — it's just a reflection of where your money stands now. Here's how one woman paid off debt and grew her total net worth over a 5-year period.

(*CAD to USD conversions are accurate as of 6/28/2019.)

Through weekly video essays, "Making It Work" showcases how *real* people have upgraded their personal or financial lives in some meaningful way. Making your life work for you doesn't mean getting rich just for the sake of it. It means making the most of what you have to build a life you love, both in your present and in your future. And while managing money is a crucial life skill for everyone, there's no one "right way" to go about it — you have to figure out what works best for *you,* full stop.

Video by Grace Lee

Based on an essay by Alyssa Fischer
Read the original essay here:

Video narration by Katie Harrington

The Financial Diet site:

[asxnkmb]

1) I got a handle on my lifestyle inflation and paid off my debt - 2:13
2) I Prioritize investing and saving - 3:13
3) We got serious about our income - 4:26

[polyglotg]

I would love to see more content aimed towards single people. I think a lot of these stories are misleading because they assume you have a partner splitting bills with you or able to pick up the slack. Not all of us have that option :-/

[HumansOfVR]

*_Student loans_* can be crippling for years and years

[OnlyInThisLight]

Biggest lesson I've learned, is that you have to accept that paying off debt and building savings TAKES YEARS. Even the best, strictest plan, will take years when you work in a position that doesn't offer advancements or raises (very common in America) and you live paycheck to paycheck. So don't be disheartened if after six months of strict budgeting and lean living that you only 100 in savings, or only managed to pay off one card, or have only reduced your monthly bills by 20-50.00 a month. You aren't failing, you HAVE YEARS.

[meredithmccann]

That’s great for her, BUT she got married and so combined earnings and split bills with another person. And she is in a country without crippling healthcare expenses and I’m guessing paid maternity leave to boot. She already had a degree, she didn’t need to figure out how to go back to school while managing debt as well as the everyday expenses of living as an adult. Good for her for getting serious and responsible about her finances, though her problems were fairly simple to handle - stopping impulse spending.

If your biggest financial problem is overspending on luxuries, you are pretty lucky these days.

[DebtFreeDee]

I ❤ calculating my current net worth but especially can't wait to calculate it once I'm debt free! Thoroughly enjoyed this video, Thx!

[ka.random_nz]

"increasing our income was what seriously changed our lives" ... So their net worth increased by earning more? Gee, why hadn't I thought of that?

[angieinthecity]

This really sounds like my life right now. 26, engaged, in debt and wanting to clear my debt before the big wedding or at least most of it😩 Will be done paying off 4 before the end of the year😭 and getting married the following year in fall

[oniuqasaile]

My personal takeaway:
1) decrease spending
3) increase income
2) prioritize savings/investments

This should be the takeaway for people commenting saying that "not everyone can get married and earn more that way" or that "not everyone has the same amount of debt" etc.

[QuesttoFIRE]

I went from a negative net worth to $50k in the positive in the first six months of 2019!😱 I couldn’t believe it! I love tracking net worth, it can really help if you feel like you’re just constantly grinding to pay off debt, but not making as much progress as you’d like. 🔥🔥🔥🔥🔥

[worcestergal]

I'm married and in late 30s, so getting roommates or moving back with family is not an appealing option. But switching job did help me get 25% salary bump (and in the same city), which helps a lot without sacrificing my privacy and sanity.

[kiterafrey]

A story doesn’t have to parallel your life to be something you can learn from. I’m not these people, but since 2007 I’ve been following blogs and books about personal financial advice and got myself out of a trailer park in a place “fondly” called felony pines and meth lab village to putting myself through college and into the middle class. Those stories were nothing like mine but I still found the value that applied to me from them and grew from it. You should too, not seeing value in advice and only getting upset it isn’t 💯 your path then you’re just using that as an excuse not to apply good advice, learn, and make changes.

[laurasosa]

My net worth was -17k last year and now i'm down to -4.8k.... thanks student loans. I vowed to never take loans again. For grad school ill be applying for scholarships, working more, and seeing where I can afford to go vs. a dream school. I still have a lot to go but being full time in school and having an irregular job isnt easy. Its all budgeting and living below your means. I basically save about 50% or more when I can of everything ive made and stopped buying out of impulse.

[kamaniIG]

Making it work is my favourite thing to watch on YouTube !!!

[noraallies]

There was a tv show that I watched years ago, I can't remember what it was called.
Basically the host said the first step it to understand your spending verses what you earn.
If you make less then what you spend you have a few options.
-Spend less
-Get a raise/more hours
-find a better paying job
-work multiple jobs
It's basic but it is often the biggest step towards financial independence.
The issue is not a lot of people have these options or are worried about leaving their comfort zone.
Does anyone have other tips?

[littlemusicx]

How does everyone in these videos have a blog or does freelance on the side? I would be interested to see a money story from a "traditional" working perspective. And please but in those curveballs and hard times too. Those are the most relatable parts.

[hooks]

It helps to have a partner who can support you through the tough times. 0:49

[schizzoid]

Is it possible to buy a house in a city with a net worth of $40k? Or does she mean in the next 5-10 years?

[BubblyVegan]

I am 25 and just starting to get a handle on my finances. I am dying to pay off my debt it is just so frustrating because my debt isn't from being irresponsible and having too much fun, it's from my previous toxic relationship and I don't make enough money to pay it off quickly. I am struggling to figure out how to make more money without going to school and creating more debt. I already live very minimally and don't spend money on useless stuff. You could say I feel stuck.

[zhubajie]

Nice to have a health care system. I'm sure that helped.