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Have you ever ever questioned if it’s doable to avoid wasting $100,000 in only a few years—with out incomes a six-figure wage? I’m right here to let you know that it’s! On this put up, I’ll share my private cash story and break down precisely how I used to be in a position to save over $100,000 in just a little over three years, beginning with a modest wage.
I’m sharing these money-saving methods not simply to focus on my very own journey however to encourage and empower you to obtain your personal monetary objectives. Whether or not you’re aiming to hit the $100k milestone or just on the lookout for methods to avoid wasting extra successfully, I hope my experiences and ideas will function motivation.
Why my story issues to you
Many individuals assume that saving six figures requires incomes six figures, however that’s not at all times the case. I began with a $54,000 wage ($40,000 after taxes) and labored my means up. I didn’t come from wealth, didn’t have an inheritance, and didn’t depend on a associate’s earnings—I did this fully alone. By means of a mix of strategic saving, sensible investing, and disciplined spending, I used to be in a position to construct my financial savings account past what I initially thought doable.
So, for those who’ve been questioning:
- How can I save $100,000 in just a few years?
- Is it lifelike to avoid wasting $100k on a mean earnings?
- What steps ought to I take to achieve my financial savings objectives?
You’re in the proper place. I’ll break down the precise steps I took—together with maximizing my earnings, chopping bills, investing correctly, and even beginning a worthwhile aspect hustle—so you’ll be able to create your personal roadmap to monetary success.
The start of my journey: How I began saving $100k
As talked about, once I graduated from school, I landed my first full-time job with a beginning wage of $54,000—which, after taxes, labored out to about $40,000 per 12 months. On the time, I used to be simply excited to have a gentle paycheck. Saving a big amount of cash wasn’t one thing I had initially deliberate for, however as I began studying extra about private finance, I spotted that reaching a six-figure financial savings purpose was doable with the proper technique and self-discipline.
Simply three and a half years later, I had over $100,000 saved. Hitting this important monetary milestone was a game-changer for me—it bolstered the concept monetary independence wasn’t only for excessive earners. It was about being intentional with my cash, making sensible choices, and staying constant.
What labored in my favor
Whereas I firmly consider that anybody can implement sensible saving methods, I additionally acknowledge that I had just a few benefits that helped me attain my purpose quicker:
I used to be lucky sufficient to haven’t any scholar loans: Due to my extremely hardworking mom (who paid my school tuition in money), partial scholarships and campus jobs, I graduated debt-free. This allowed me to concentrate on constructing financial savings as an alternative of paying off loans.
I had an excellent beginning wage: Incomes $40,000 after taxes was a strong earnings for a latest school graduate, giving me room to avoid wasting whereas nonetheless overlaying my primary bills.
My wage grew over time: I obtained a elevate, a bonus, and a promotion every year, rising my wage to $74,000 ($52,000 after taxes) by the top of three.5 years. Whereas not a six-figure wage, the regular earnings progress helped speed up my financial savings.
What actually issues
Regardless that I had these benefits, what actually made the distinction was my dedication to saving and managing my cash correctly. I constructed habits that ensured I saved a good portion of each paycheck, no matter how a lot I used to be making:
I saved this cash fully alone. No inheritance, no monetary assist from a associate, and no windfall.
I used to be single with no youngsters and lived on one earnings. There was no second paycheck contributing to my family.
I did it with out incomes six figures. A excessive wage is useful, however disciplined saving habits matter extra.
How I saved $100k in 3 years: My key methods
Now that you’ve got some background of my monetary journey, let’s dive into the particular money-saving methods that helped me attain $100,000 in financial savings in simply 3.5 years. These are sensible, repeatable steps that anybody can apply to their very own monetary objectives.
1. I Contributed to My 401(okay) and took full benefit of my employer match
After I first began working, I had no concept what a 401(okay) was or why I wanted one. All I knew was that my employer was providing free cash via a 401(okay) match, and I wasn’t about to go away that on the desk.
How I maximized my 401(okay) contributions
On the time, my employer matched 100% of the primary 6% of pre-tax {dollars} that I contributed. I began contributing instantly and labored my means as much as saving ~15% of my wage.
Over 3.5 years, my contributions, mixed with employer matching and inventory market progress, added as much as about $40,000 in my retirement account.
This was additionally earlier than a serious U.S. recession, so the inventory market was performing effectively, and my investments grew over time. Regardless that I didn’t max out my 401(okay), persistently contributing from the start made an enormous distinction.
What you’ll be able to study from this technique
- Begin investing as early as doable: Time available in the market issues greater than timing the market.
- In case your employer gives a match, take it: It’s actually free cash that helps you construct wealth quicker.
- Improve your contributions over time: If maxing out isn’t possible instantly, begin small and enhance by 1% every quarter or each time you get a elevate.
Intelligent Woman Tip: Investing is a key a part of saving cash for the long run. If in case you have entry to a 401(okay), Particular person Retirement Account (IRA), or one other retirement plan, begin contributing as quickly as doable—even when it’s only a small quantity. Your future self will thanks.
Wish to study extra about investing? Take a look at my guide: Study How Investing Works, Develop Your Cash!
2. I saved my bills low
Some of the vital issues I did to achieve my $100k financial savings purpose was maintaining my bills as little as doable. Many individuals focus solely on rising their earnings, however for those who don’t management your spending, it doesn’t matter how a lot you make—you’ll at all times really feel such as you don’t have sufficient.
After taxes, 401(okay) contributions, and different deductions, I needed to be strategic with how I managed the remainder of my earnings. My fundamental bills included my used automobile fee ($150 at first, then $300 once I upgraded my automobile), automobile insurance coverage ($80), and my mortgage ($900). By maintaining my housing and transportation prices manageable, I freed up more cash to avoid wasting.
For the primary six months after school, I lived at residence, which helped me construct an preliminary financial savings cushion. As soon as I moved into my very own place, I continued to maintain prices low by being aware of my spending and averted way of life inflation AKA way of life creep. I hardly ever ate out, my grocery invoice was minimal since I wasn’t cooking a lot, and I didn’t splurge on alcohol or costly leisure. A lot of my work lunches had been reimbursed resulting from my frequent journey, and I lived near my workplace, so gasoline bills had been low.
I additionally averted costly procuring habits. Whereas I did permit myself some enjoyable cash to plan a trip and to buy often, I didn’t have any pricey hobbies or luxurious spending habits at the moment. My utility payments, web, and telephone bills had been round $170 mixed every month, which I thought of affordable.
What you’ll be able to study from this technique
Conserving bills low is among the quickest methods to speed up your financial savings. Even for those who don’t make a excessive wage, how a lot you retain issues greater than how a lot you earn. In the event you can cut back your dwelling prices keep a way of life, you’ll have extra room to avoid wasting:
- Take into account dwelling with household or getting roommates briefly if doable to jumpstart your financial savings.
- Scale back meals bills by meal prepping, cooking at residence, and limiting takeout.
- Minimize pointless subscriptions and negotiate payments like web and insurance coverage.
- Keep away from way of life inflation—simply since you get a elevate doesn’t imply it’s essential to enhance your spending.
Intelligent Woman Tip: In case your purpose is to avoid wasting a big amount of cash, lowering bills must be certainly one of your first areas of focus. Strive dwelling near work to avoid wasting on commuting prices, pack your lunches, and minimize out pointless spending (keep on with your requirements). Even small financial savings add up over time and may make an enormous distinction in your monetary progress.
3. I centered on saving 40% to 50% of every paycheck and something further
Decreasing bills was only one a part of my technique—what actually helped me construct financial savings shortly was committing to saving a big share of my earnings whereas I used to be in a position to. From the very starting, I aimed to avoid wasting 40% to 50% of every paycheck, plus any more money I obtained.
After taxes, 401(okay) contributions, and deductions, my take-home pay throughout my first 12 months was round $1,350 to $1,400 per paycheck. I made it a purpose to place apart $500 to $700 per paycheck into financial savings. Since I saved my bills low, this wasn’t tough to do, and over time, it turned a behavior.
Past my common financial savings, I made positive to avoid wasting all my annual bonuses (which, after taxes, got here to about $1,500 within the early years). I additionally saved a big portion of my tax refunds as an alternative of spending them.
By being constant, I used to be in a position to save round $18,000 per 12 months in money from my full-time job. By the top of three.5 years, I had over $50,000 saved in money financial savings (in high-yield financial savings accounts, quite a lot of which I’d later make investments), which was an enormous a part of my $100k milestone.
What you’ll be able to study from this technique
An enormous financial savings purpose requires an intentional plan to place cash apart usually. It’s not nearly chopping bills—it’s about deciding to avoid wasting first after which adjusting your spending round that call.
- Set a particular financial savings share of your earnings and keep on with it.
- Automate financial savings so the cash strikes to a separate account earlier than you have got an opportunity to spend it.
- Save sudden earnings like bonuses, tax refunds, and money items as an alternative of treating them as further spending cash.
- In the event you get a elevate, enhance your financial savings share earlier than adjusting your way of life.
Intelligent Woman Tip: With regards to the right way to save $100k, it’s not nearly reducing bills however being proactive about saving. I made saving non-negotiable by organising computerized transfers into my my high-interest financial savings account. By treating financial savings like a invoice I needed to pay, I by no means needed to depend on willpower alone.
4. I began a aspect hustle
One of many greatest boosts to my financial savings was beginning a aspect hustle. Whereas saving from my full-time job helped me construct a robust basis, my aspect enterprise accelerated my progress and pushed me over the $100k mark.
In my second 12 months of saving, I developed a ardour for pictures. What began as a interest shortly was a worthwhile way of life and marriage ceremony pictures enterprise. To get began, I used a few of my financial savings to put money into an entry-level DSLR digital camera. I frolicked finding out my craft, doing free shoots to construct my portfolio, and studying from extra skilled photographers.
As my abilities improved, I started reserving paid gigs, and inside just a few months, my enterprise began rising. I networked with photographers who let me second shoot for them, which led to referrals and extra paid work.
By the top of my first 12 months, I had earned round $10,000 from my aspect enterprise. By my second 12 months, that quantity had jumped to $30,000, and within the following years, I earned much more. Whereas it required arduous work and dedication, my aspect hustle performed a key position in reaching my financial savings purpose.
You possibly can take a look at my guide, The Aspect Hustle Information, for all my greatest ideas and recommendation on constructing a profitable aspect hustle.
What I did with my aspect hustle cash
I used my aspect hustle earnings in three key methods:
- I reinvested in my enterprise: I upgraded my digital camera gear, lighting, and gear to extend the standard of my work. I additionally took on-line programs to enhance my pictures and advertising and marketing abilities.
- I saved a big portion of my earnings: This further earnings allowed me to extend my money financial savings and make investments extra aggressively.
- I indulged in just a few splurges: I gained’t lie, I had a purse obsession for some time! I later offered a lot of them, however wanting again, I do know I might have saved much more if I had been extra disciplined with my aspect hustle earnings.
If you wish to enhance your financial savings price, think about beginning a aspect hustle. Incomes further earnings—even just a few hundred {dollars} a month—can considerably velocity up your financial savings.
- Select a aspect hustle that aligns along with your abilities or pursuits to maintain you motivated.
- Begin small, however be constant—just a few hours per week can add up over time.
- Reinvest in your enterprise correctly, however don’t neglect to prioritize saving a portion of your earnings.
- Use aspect hustle earnings to pay down debt, increase financial savings, or make investments for the long run.
Intelligent Woman Tip: A aspect hustle could be a game-changer in your funds, however provided that you handle the additional earnings correctly. As a substitute of accelerating your spending, use your aspect hustle earnings to fund your monetary objectives. It may be the important thing to reaching your financial savings objectives even quicker.
5. I spent cash on credit score however I used to be sensible about it
Regardless that I used to be centered on saving, I nonetheless used bank cards—however I made positive to take action strategically. As a substitute of racking up pointless debt, I used credit score as a device to construct my credit score historical past, earn rewards, and handle bills responsibly.
One of many key methods I managed my credit score use was by primarily utilizing a cost card fairly than a conventional bank card. A cost card, just like the American Categorical Gold, requires you to pay your steadiness in full each month, stopping me from carrying high-interest debt.
I used to be required to have a cost card for work-related journey bills, and I figured, why not get one for myself too? Whereas I did make just a few errors early on—spending just a little greater than I ought to have at instances—the cost card helped me develop robust monetary self-discipline as a result of I needed to pay it off in full every billing cycle.
How I used credit score correctly
- I averted carrying a steadiness: I paid off my cost card in full each month, which helped me construct a robust credit score historical past with out accumulating curiosity.
- I tracked my spending: By reviewing my statements usually, I ensured I used to be staying inside my finances and never overspending.
- I used credit score for vital bills: I charged work-related journey prices and on a regular basis bills however at all times had the money to pay them off instantly.
- I monitored my credit score rating: I checked my credit score experiences usually to remain on prime of my monetary well being and guarantee there have been no errors or fraudulent exercise.
Utilizing credit score doesn’t should be dangerous—if used correctly, it may be a useful monetary device. The secret is controlling your spending and ensuring you’ll be able to repay your steadiness in full every month.
- Think about using a cost card as an alternative of a conventional bank card to keep away from carrying a steadiness.
- At all times pay your bank card in full to keep away from curiosity fees and debt accumulation.
- Monitor your credit score rating and credit score historical past to make sure accuracy and defend your monetary popularity.
- Use credit score for strategic purchases—not for way of life inflation or impulse spending.
Intelligent Woman Tip: It doesn’t matter what sort of credit score you utilize, at all times keep on prime of your credit score report—errors and fraud can have an effect on your potential to get loans, hire an condo, and even get a job.
Skilled tip: It’s about what you retain
The largest consider reaching a excessive financial savings purpose isn’t how a lot you make—it’s how a lot you retain. Automating financial savings, maintaining bills low, and making strategic monetary decisions will show you how to construct wealth quicker than you suppose.
Generally requested questions on my $100k financial savings journey
Is it lifelike to avoid wasting $100k in 3 years?
Sure, but it surely relies on your earnings, bills, and dedication to saving. In the event you maximize your earnings, hold bills low, and make investments strategically, it’s achievable—even with no six-figure wage.
Are you able to save $100k with no excessive earnings?
Completely. My story proves that you simply don’t must earn a large wage to avoid wasting a considerable quantity—you simply must be intentional with the way you save, spend, and make investments. The secret is to begin the place you’re, concentrate on what you’ll be able to management, and construct momentum over time.
I additionally need to spotlight that self-education performed an enormous position in my success. Studying private finance books, studying from specialists, and understanding primary investing ideas fully modified how I approached cash. That’s why I later wrote my very own guide collection, beginning with Intelligent Woman Finance: Ditch Debt, Save Cash & Construct Actual Wealth—the information I want I had firstly of my journey.
Ought to I make investments or hold my financial savings in money?
A mixture of each is good. Hold an emergency fund in money however make investments the remaining in retirement accounts (401k, IRA) or brokerage accounts to develop your cash over time.
What’s the largest mistake folks make when making an attempt to avoid wasting?
Way of life inflation—whenever you enhance spending as your earnings grows as an alternative of saving the additional cash. Keep away from this entice by prioritizing saving and investing first earlier than adjusting your way of life.
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It can save you $100,000
These are the precise steps I took to avoid wasting $100,000 in 3 years, and if I might do it, so are you able to. Whereas everybody’s monetary state of affairs is totally different, the important thing takeaway is that saving a big amount of cash is feasible with the proper mindset, technique, and consistency.
Even for those who’re not ready to avoid wasting $100k proper now, don’t be discouraged. Perhaps you have got scholar loans, bank card debt, or household obligations that make saving tough. That doesn’t imply you’ll be able to’t begin the place you’re and work towards a serious financial savings purpose over time. Whether or not you’re saving for a home down fee, monetary independence, or simply constructing a strong emergency fund, each single greenback counts.
Bear in mind to:
- Assess your present monetary state of affairs: Take a deep dive into your earnings, bills, and debt. Understanding the place you stand is step one to creating progress.
- Set a sensible financial savings goal: If $100k feels overwhelming, begin with $10k, then work your means up. Small wins construct momentum.
- Create a saving technique: Whether or not it’s chopping bills, rising earnings, or automating financial savings, make a plan that matches your way of life.
- Keep constant and affected person: Saving cash takes time, however staying centered in your purpose will result in actual progress.
- Spend money on your monetary training: Studying about cash administration, investing, and wealth-building will show you how to make smarter choices.
I do know from expertise that adjusting your mindset is simply as vital because the money-saving techniques themselves. As a substitute of eager about what you can’t afford or can’t do, shift your focus to what you’ll be able to management—your spending habits, your earnings potential, and your long-term objectives.