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

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Have you ever ever puzzled if it’s potential to avoid wasting $100,000 in only a few years—with out incomes a six-figure wage? I’m right here to inform you that it’s! On this submit, 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 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 attain your personal monetary targets. Whether or not you’re aiming to hit the $100k milestone or just searching 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 revenue—I did this utterly alone. By way of a mix of strategic saving, good investing, and disciplined spending, I used to be in a position to construct my financial savings account past what I initially thought potential.

So, should you’ve been questioning:

• How can I save $100,000 in just a few years?
• Is it sensible to avoid wasting $100k on a median revenue?
• What steps ought to I take to achieve my financial savings targets?

You’re in the best place. I’ll break down the precise steps I took—together with maximizing my revenue, slicing bills, investing properly, and even beginning a worthwhile facet hustle—so you possibly can create your personal roadmap to monetary success.

The start of my journey: How I began saving $100k

As talked about, once I graduated from faculty, 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 amount of cash 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 objective was potential with the best 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 strengthened the concept monetary independence wasn’t only for excessive earners. It was about being intentional with my cash, making good selections, and staying constant.

What labored in my favor

Whereas I firmly consider that anybody can implement good saving methods, I additionally acknowledge that I had just a few benefits that helped me attain my objective quicker:

I used to be lucky sufficient to haven’t any pupil loans: Due to my extremely hardworking mom (who paid my faculty tuition in money), partial scholarships and campus jobs, I graduated debt-free. This allowed me to give attention to constructing financial savings as an alternative of paying off loans.

I had a great beginning wage: Incomes $40,000 after taxes was a strong revenue for a latest faculty graduate, giving me room to avoid wasting whereas nonetheless masking my primary bills.

My wage grew over time: I acquired a increase, 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 revenue progress helped speed up my financial savings.

What actually issues

Although I had these benefits, what actually 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 revenue. 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 targets.

1. I Contributed to My 401(okay) and took full benefit of my employer match

Once 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 by way of a 401(okay) match, and I wasn’t about to depart 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 significant U.S. recession, so the inventory market was performing properly, and my investments grew over time. Although I didn’t max out my 401(okay), persistently contributing from the start made an enormous distinction.

What you possibly can study from this technique

• Begin investing as early as potential: Time out there issues greater than timing the market.
• In case your employer provides a match, take it: It’s actually free cash that helps you construct wealth quicker.
• Enhance 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 increase.

Intelligent Woman Tip: Investing is a key a part of saving cash for the long run. When you have entry to a 401(okay), Particular person Retirement Account (IRA), or one other retirement plan, begin contributing as quickly as potential—even when it’s only a small quantity. Your future self will thanks.

Need to study extra about investing? Take a look at my ebook: Be taught How Investing Works, Develop Your Cash!

2. I saved my bills low

Some of the necessary issues I did to achieve my $100k financial savings objective was preserving my bills as little as potential. Many individuals focus solely on rising their revenue, however should 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 revenue. My major bills included my used automobile cost ($150 at first, then $300 once I upgraded my automobile), automobile insurance coverage ($80), and my mortgage ($900). By preserving my housing and transportation prices manageable, I freed up extra money to avoid wasting.

For the primary six months after faculty, 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 conscious of my spending and averted life-style inflation AKA life-style creep. I not often 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 have been reimbursed as a consequence of my frequent journey, and I lived near my workplace, so gasoline bills have 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 expensive hobbies or luxurious spending habits at the moment. My utility payments, web, and cellphone bills have been round $170 mixed every month, which I thought-about affordable.

What you possibly can study from this technique

Holding bills low is among the quickest methods to speed up your financial savings. Even should you don’t make a excessive wage, how a lot you retain issues greater than how a lot you earn. When you can cut back your dwelling prices keep a lifestyle, you’ll have extra room to avoid wasting:

• Take into account dwelling with household or getting roommates quickly if potential 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 life-style inflation—simply since you get a increase doesn’t imply that you must enhance your spending.

Intelligent Woman Tip: In case your objective is to avoid wasting a major amount of cash, lowering bills ought to be one in every of your first areas of focus. Strive dwelling near work to avoid wasting on commuting prices, pack your lunches, and lower out pointless spending (follow your requirements). Even small financial savings add up over time and might make an enormous distinction in your monetary progress.

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

Lowering bills was only one a part of my technique—what actually helped me construct financial savings shortly was committing to saving a big proportion of my revenue 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 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 objective to place apart $500 to $700 per paycheck into financial savings. Since I saved my bills low, this wasn’t troublesome 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 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, quite a lot of which I’d later make investments), which was an enormous a part of my $100k milestone.

What you possibly can study from this technique

An enormous financial savings objective requires an intentional plan to place cash apart repeatedly. It’s not nearly slicing bills—it’s about deciding to avoid wasting first after which adjusting your spending round that call.

• Set a particular financial savings proportion of your revenue and follow it.
• Automate financial savings so the cash strikes to a separate account earlier than you’ve an opportunity to spend it.
• Save sudden revenue like bonuses, tax refunds, and money presents as an alternative of treating them as further spending cash.
• When you get a increase, enhance your financial savings proportion earlier than adjusting your life-style.

Intelligent Woman Tip: Relating to easy methods to save $100k, it’s not nearly decreasing 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 facet hustle

One of many largest boosts to my financial savings was beginning a facet hustle. Whereas saving from my full-time job helped me construct a powerful basis, my facet enterprise accelerated my progress and pushed me over the $100k mark.

In my second yr of saving, I developed a ardour for pictures. What began as a interest shortly changed into a worthwhile life-style and marriage ceremony pictures enterprise. To get began, I used a few of my financial savings to spend money on an entry-level DSLR digital camera. I hung out 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 yr, I had earned round $10,000 from my facet enterprise. By my second yr, that quantity had jumped to $30,000, and within the following years, I earned much more. Whereas it required laborious work and dedication, my facet hustle performed a key position in reaching my financial savings objective.

You possibly can take a look at my ebook, The Aspect Hustle Information, for all my greatest suggestions and recommendation on constructing a profitable facet hustle.

What I did with my facet hustle cash

I used my facet hustle revenue in three key methods:

1. 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 abilities.
2. I saved a big portion of my earnings: This further revenue 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 bought lots of them, however trying again, I do know I might have saved much more if I had been extra disciplined with my facet hustle earnings.

If you wish to enhance your financial savings fee, think about beginning a facet hustle. Incomes further revenue—even just a few hundred {dollars} a month—can considerably pace up your financial savings.

• Select a facet hustle that aligns together with your abilities 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 online business properly, however don’t neglect to prioritize saving a portion of your earnings.
• Use facet hustle revenue to pay down debt, increase financial savings, or make investments for the long run.

Intelligent Woman Tip: A facet hustle is usually a game-changer to your funds, however provided that you handle the additional revenue properly. As a substitute of accelerating your spending, use your facet hustle earnings to fund your monetary targets. It may be the important thing to reaching your financial savings targets even quicker.

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

Although I used to be targeted 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 instrument 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 moderately than a conventional bank card. A cost card, just like the American Categorical Gold, requires you to pay your stability 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 bit 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 properly

1. I averted carrying a stability: 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 repeatedly, I ensured I used to be staying inside my finances and never overspending.
3. I used credit score for vital 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 studies repeatedly to remain on prime of my monetary well being and guarantee there have been no errors or fraudulent exercise.

Utilizing credit score doesn’t must be unhealthy—if used properly, it may be a useful monetary instrument. The secret’s controlling your spending and ensuring you possibly can repay your stability in full every month.

• Think about using a cost card as an alternative of a conventional bank card to keep away from carrying a stability.
• All the time pay your bank card in full to keep away from curiosity expenses and debt accumulation.
• Monitor your credit score rating and credit score historical past to make sure accuracy and shield your monetary fame.
• 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 capability to get loans, lease an residence, and even get a job.

Professional tip: It’s about what you retain

The largest think about reaching a excessive financial savings objective isn’t how a lot you make—it’s how a lot you retain. Automating financial savings, preserving bills low, and making strategic monetary selections will assist you construct wealth quicker than you suppose.

Generally requested questions on my $100k financial savings journey

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

Sure, nevertheless it will depend on your revenue, bills, and dedication to saving. When you maximize your earnings, preserve bills low, and make investments strategically, it’s achievable—even and not using a six-figure wage.

Are you able to save $100k and not using a excessive revenue?

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’s to start out the place you might be, give attention to what you possibly can management, and construct momentum over time.

I additionally wish to spotlight that self-education performed an enormous position in my success. Studying private finance books, studying from specialists, and understanding primary investing ideas utterly 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 preserve my financial savings in money?

A mixture of each is right. Preserve 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 most important mistake individuals make when making an attempt to avoid wasting?

Life-style inflation—once you enhance spending as your revenue 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 might do it, so are you able to. Whereas everybody’s monetary state of affairs is completely different, the important thing takeaway is that saving a major amount of cash is feasible with the best mindset, technique, and consistency.

Even should you’re not able to avoid wasting $100k proper now, don’t be discouraged. Possibly you’ve pupil loans, bank card debt, or household obligations that make saving troublesome. That doesn’t imply you possibly can’t begin the place you might be and work towards a significant financial savings objective over time. Whether or not you’re saving for a home down cost, monetary independence, or simply constructing a strong emergency fund, each single greenback counts.

Keep in mind to:

1. Assess your present monetary state of affairs: Take a deep dive into your revenue, 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 slicing bills, rising revenue, 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 objective will result in actual progress.
5. Put money into your monetary training: Studying about cash administration, investing, and wealth-building will assist you make smarter selections.

I do know from expertise that adjusting your mindset is simply as necessary because the money-saving ways themselves. As a substitute of serious about what you can’t afford or can’t do, shift your focus to what you possibly can management—your spending habits, your revenue potential, and your long-term targets.