How To Save $100K: I Did It In 3 Years

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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 publish, 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 a little bit 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 individual 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 suggestions will function motivation.

Why my story issues to you

Many individuals assume that saving six figures requires incomes six figures, however that’s not all the time 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 accomplice’s earnings—I did this fully alone. By way 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, in case you’ve been questioning:

• How can I save $100,000 in just a few years?
• Is it life like to avoid wasting $100k on a median earnings?
• What steps ought to I take to succeed in my financial savings objectives?

You’re in the appropriate place. I’ll break down the precise steps I took—together with maximizing my earnings, reducing bills, investing properly, and even beginning a worthwhile aspect hustle—so you’ll be able to create your individual 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 yr. On the time, I used to be simply excited to have a gradual paycheck. Saving a big sum of money wasn’t one thing I had initially deliberate for, however as I began studying extra about private finance, I noticed that reaching a six-figure financial savings purpose was doable with the appropriate technique and self-discipline.

Simply three and a half years later, I had over $100,000 saved. Hitting this vital 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 sooner:

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 deal with constructing financial savings as an alternative of paying off loans.

I had a very good beginning wage: Incomes $40,000 after taxes was a stable earnings for a current school graduate, giving me room to avoid wasting whereas nonetheless masking my primary bills.

My wage grew over time: I acquired a elevate, a bonus, and a promotion every year, growing 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 development helped speed up my financial savings.

What actually issues

Despite the fact that I had these benefits, what really made the distinction was my dedication to saving and managing my cash properly. 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 accomplice, and no windfall.
I used to be single with no children 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 precise 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 thought what a 401(okay) was or why I wanted one. All I knew was that my employer was providing free cash by means of 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 development, added as much as about $40,000 in my retirement account.

This was additionally earlier than a significant U.S. recession, so the inventory market was performing properly, and my investments grew over time. Despite the fact that I didn’t max out my 401(okay), constantly 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 out there issues greater than timing the market.
• In case your employer presents a match, take it: It’s actually free cash that helps you construct wealth sooner.
• Improve your contributions over time: If maxing out isn’t possible immediately, 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. When you’ve got 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.

Need to study extra about investing? Try my ebook: Study How Investing Works, Develop Your Cash!

2. I stored my bills low

Probably the most necessary issues I did to succeed in my $100k financial savings purpose was retaining my bills as little as doable. Many individuals focus solely on growing their earnings, however in case you don’t management your spending, it doesn’t matter how a lot you make—you’ll all the time 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 principal 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 retaining my housing and transportation prices manageable, I freed up more cash to avoid wasting.

For the primary six months after school, I lived at house, 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 prevented life-style inflation AKA life-style 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. Lots of my work lunches have been reimbursed resulting from my frequent journey, and I lived near my workplace, so gasoline bills have been low.

I additionally prevented costly procuring habits. Whereas I did enable 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 have been round $170 mixed every month, which I thought-about affordable.

What you’ll be able to study from this technique

Protecting bills low is without doubt one of the quickest methods to speed up your financial savings. Even in case you don’t make a excessive wage, how a lot you retain issues greater than how a lot you earn. For those who can scale back your dwelling prices preserve a way of life, you’ll have extra room to avoid wasting:

• Think about dwelling with household or getting roommates briefly if doable to jumpstart your financial savings.
• Cut back meals bills by meal prepping, cooking at house, and limiting takeout.
• Minimize pointless subscriptions and negotiate payments like web and insurance coverage.
• Keep away from life-style inflation—simply since you get a elevate doesn’t imply you must enhance your spending.

Intelligent Woman Tip: In case your purpose is to avoid wasting a major sum of money, lowering bills needs to be one in all your first areas of focus. Strive dwelling near work to avoid wasting on commuting prices, pack your lunches, and lower out pointless spending (persist with your requirements). Even small financial savings add up over time and may make an enormous distinction in your monetary progress.

3. I targeted on saving 40% to 50% of every paycheck and something additional

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 extra cash I acquired.

After taxes, 401(okay) contributions, and deductions, my take-home pay throughout my first yr 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 stored my bills low, this wasn’t tough to do, and over time, it turned a behavior.

Past my common financial savings, I made certain 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 yr 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, a whole 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

A giant financial savings purpose requires an intentional plan to place cash apart usually. It’s not nearly reducing bills—it’s about deciding to avoid wasting first after which adjusting your spending round that call.

• Set a selected financial savings share of your earnings and persist with it.
• Automate financial savings so the cash strikes to a separate account earlier than you’ve an opportunity to spend it.
• Save surprising earnings like bonuses, tax refunds, and money items as an alternative of treating them as additional spending cash.
• For those who get a elevate, enhance your financial savings share earlier than adjusting your life-style.

Intelligent Woman Tip: Relating to tips on how 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 largest boosts to my financial savings was beginning a aspect hustle. Whereas saving from my full-time job helped me construct a powerful basis, my aspect enterprise accelerated my progress and pushed me over the $100k mark.

In my second yr of saving, I developed a ardour for images. What began as a pastime shortly changed into a worthwhile life-style and marriage ceremony images enterprise. To get began, I used a few of my financial savings to spend money on an entry-level DSLR digicam. I frolicked finding out my craft, doing free shoots to construct my portfolio, and studying from extra skilled photographers.

As my expertise 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 yr, I had earned round $10,000 from my aspect enterprise. By my second yr, 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 function in reaching my financial savings purpose.

You may take a look at my ebook, The Facet Hustle Information, for all my greatest suggestions 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:

1. I reinvested in my enterprise: I upgraded my digicam gear, lighting, and tools to extend the standard of my work. I additionally took on-line programs to enhance my images and advertising and marketing expertise.
2. I saved a big portion of my earnings: This additional earnings allowed me to extend my money financial savings and make investments extra aggressively.
3. 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 trying again, I do know I may have saved much more if I had been extra disciplined with my aspect hustle earnings.

If you wish to enhance your financial savings charge, contemplate beginning a aspect hustle. Incomes additional earnings—even just a few hundred {dollars} a month—can considerably velocity up your financial savings.

• Select a aspect hustle that aligns together with your expertise or pursuits to maintain you motivated.
• Begin small, however be constant—just a few hours every week can add up over time.
• Reinvest in your enterprise properly, however don’t overlook to prioritize saving a portion of your earnings.
• Use aspect hustle earnings to pay down debt, enhance 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 properly. As an alternative 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 sooner.

5. I spent cash on credit score however I used to be sensible about it

Despite the fact that I used to be targeted on saving, I nonetheless used bank cards—however I made certain to take action strategically. As an alternative of racking up pointless debt, I used credit score as a software 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 a little bit greater than I ought to have at occasions—the cost card helped me develop sturdy monetary self-discipline as a result of I needed to pay it off in full every billing cycle.

How I used credit score properly

1. I prevented carrying a steadiness: I paid off my cost card in full each month, which helped me construct a powerful credit score historical past with out accumulating curiosity.
2. I tracked my spending: By reviewing my statements usually, I ensured I used to be staying inside my price range and never overspending.
3. I used credit score for essential bills: I charged work-related journey prices and on a regular basis bills however all the time had the money to pay them off instantly.
4. I monitored my credit score rating: I checked my credit score reviews 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 need to be dangerous—if used properly, it may be a useful monetary software. 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 prices and debt accumulation.
• Monitor your credit score rating and credit score historical past to make sure accuracy and shield your monetary status.
• Use credit score for strategic purchases—not for life-style inflation or impulse spending.

Intelligent Woman Tip: It doesn’t matter what form of credit score you employ, all the time keep on prime of your credit score report—errors and fraud can have an effect on your potential to get loans, lease an condo, and even get a job.

Skilled tip: It’s about what you retain

The largest think about reaching a excessive financial savings purpose isn’t how a lot you make—it’s how a lot you retain. Automating financial savings, retaining bills low, and making strategic monetary decisions will allow you to construct wealth sooner than you assume.

Generally requested questions on my $100k financial savings journey

Is it life like to avoid wasting $100k in 3 years?

Sure, however it relies on your earnings, bills, and dedication to saving. For those who maximize your earnings, hold bills low, and make investments strategically, it’s achievable—even with out a six-figure wage.

Are you able to save $100k with out a excessive earnings?

Completely. My story proves that you simply don’t have to earn a large wage to avoid wasting a considerable quantity—you simply have to be intentional with the way you save, spend, and make investments. The secret is to begin the place you might be, deal with what you’ll be able to management, and construct momentum over time.

I additionally wish to spotlight that self-education performed an enormous function in my success. Studying private finance books, studying from consultants, and understanding primary investing ideas fully modified how I approached cash. That’s why I later wrote my very own ebook sequence, beginning with Intelligent Woman Finance: Ditch Debt, Save Cash & Construct Actual Wealth—the information I want I had initially of my journey.

Ought to I make investments or hold my financial savings in money?

A mixture of each is right. Preserve an emergency fund in money however make investments the remainder in retirement accounts (401k, IRA) or brokerage accounts to develop your cash over time.

What’s the largest mistake individuals make when attempting to avoid wasting?

Life-style inflation—while 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 life-style.

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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 may do it, so are you able to. Whereas everybody’s monetary scenario is totally different, the important thing takeaway is that saving a major sum of money is feasible with the appropriate mindset, technique, and consistency.

Even in case you’re not able to avoid wasting $100k proper now, don’t be discouraged. Possibly you’ve 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 might be and work towards a significant financial savings purpose over time. Whether or not you’re saving for a home down fee, monetary independence, or simply constructing a stable emergency fund, each single greenback counts.

Bear in mind to:

1. Assess your present monetary scenario: Take a deep dive into your earnings, bills, and debt. Understanding the place you stand is step one to creating progress.
2. Set a practical financial savings goal: If $100k feels overwhelming, begin with $10k, then work your means up. Small wins construct momentum.
3. Create a saving technique: Whether or not it’s reducing bills, growing earnings, or automating financial savings, make a plan that matches your life-style.
4. Keep constant and affected person: Saving cash takes time, however staying targeted in your purpose will result in actual progress.
5. Put money into your monetary schooling: Studying about cash administration, investing, and wealth-building will allow you to make smarter choices.

I do know from expertise that adjusting your mindset is simply as necessary because the money-saving ways themselves. As an alternative of excited 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.