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Have you ever ever questioned 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 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 slightly 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 in search of 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 approach up. I didn’t come from wealth, didn’t have an inheritance, and didn’t depend on a accomplice’s revenue—I did this fully by myself. By means of a mixture 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 potential.
So, in the event you’ve been questioning:
- How can I save $100,000 in a number of years?
- Is it sensible to avoid wasting $100k on a median revenue?
- What steps ought to I take to succeed in my financial savings objectives?
You’re in the correct place. I’ll break down the precise steps I took—together with maximizing my revenue, slicing bills, investing correctly, and even beginning a worthwhile aspect 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 gentle 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 objective was potential with the correct 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 that 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 a number of benefits that helped me attain my objective sooner:
I used to be lucky sufficient to don’t have any pupil loans: Because of my extremely hardworking mom (who paid my faculty 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 strong revenue for a current faculty graduate, giving me room to avoid wasting whereas nonetheless protecting my fundamental bills.
My wage grew over time: I obtained a increase, 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 revenue progress 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 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 completely by myself. 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 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(ok) and took full benefit of my employer match
Once I first began working, I had no concept what a 401(ok) was or why I wanted one. All I knew was that my employer was providing free cash via a 401(ok) match, and I wasn’t about to go away that on the desk.
How I maximized my 401(ok) 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 approach 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 nicely, and my investments grew over time. Despite the fact that I didn’t max out my 401(ok), constantly contributing from the start made an enormous distinction.
What you possibly can study from this technique
- Begin investing as early as potential: Time available in the market 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.
- Enhance your contributions over time: If maxing out isn’t possible instantly, begin small and improve 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’ve got entry to a 401(ok), 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
Probably the most necessary issues I did to succeed in my $100k financial savings objective was retaining my bills as little as potential. Many individuals focus solely on growing their revenue, however in the event 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(ok) contributions, and different deductions, I needed to be strategic with how I managed the remainder of my revenue. My foremost bills included my used automotive cost ($150 at first, then $300 once I upgraded my automotive), automotive insurance coverage ($80), and my mortgage ($900). By retaining my housing and transportation prices manageable, I freed up extra money to avoid wasting.
For the primary six months after faculty, I lived at dwelling, 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 had been reimbursed because of my frequent journey, and I lived near my workplace, so fuel bills had been low.
I additionally prevented costly buying habits. Whereas I did enable myself some enjoyable cash to plan a trip and to buy sometimes, I didn’t have any expensive 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 cheap.
What you possibly can study from this technique
Protecting bills low is likely one of the quickest methods to speed up your financial savings. Even in the event you don’t make a excessive wage, how a lot you retain issues greater than how a lot you earn. Should you can cut back your dwelling prices preserve a lifestyle, you’ll have extra room to avoid wasting:
- Think about dwelling with household or getting roommates quickly if potential to jumpstart your financial savings.
- Cut back meals bills by meal prepping, cooking at dwelling, and limiting takeout.
- Lower 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 it is advisable improve your spending.
Intelligent Woman Tip: In case your objective is to avoid wasting a major sum of money, lowering bills needs 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 centered on saving 40% to 50% of every paycheck and something additional
Lowering bills was only one a part of my technique—what actually helped me construct financial savings rapidly 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 extra cash I obtained.
After taxes, 401(ok) 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, a variety 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 commonly. It’s not nearly slicing bills—it’s about deciding to avoid wasting first after which adjusting your spending round that call.
- Set a selected financial savings proportion of your revenue and follow it.
- Automate financial savings so the cash strikes to a separate account earlier than you will have an opportunity to spend it.
- Save sudden revenue like bonuses, tax refunds, and money presents as an alternative of treating them as additional spending cash.
- Should you get a increase, improve your financial savings proportion earlier than adjusting your life-style.
Intelligent Woman Tip: In terms of find out how to save $100k, it’s not nearly decreasing bills however being proactive about saving. I made saving non-negotiable by establishing 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 yr of saving, I developed a ardour for pictures. What began as a passion rapidly became a worthwhile life-style and marriage ceremony pictures enterprise. To get began, I used a few of my financial savings to put money into an entry-level DSLR digicam. I frolicked learning 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 a number of 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 position in reaching my financial savings objective.
You may take a look at my ebook, The Facet Hustle Information, for all my finest suggestions and recommendation on constructing a profitable aspect hustle.
What I did with my aspect hustle cash
I used my aspect hustle revenue in three key methods:
- 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 pictures and advertising and marketing abilities.
- I saved a big portion of my earnings: This additional revenue allowed me to extend my money financial savings and make investments extra aggressively.
- I indulged in a number of splurges: I received’t lie, I had a purse obsession for some time! I later bought lots of them, however wanting 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 improve your financial savings price, think about beginning a aspect hustle. Incomes additional revenue—even a number of 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—a number of hours every week can add up over time.
- Reinvest in your online business correctly, however don’t overlook to prioritize saving a portion of your earnings.
- Use aspect hustle revenue to pay down debt, increase financial savings, or make investments for the long run.
Intelligent Woman Tip: A aspect hustle generally is a game-changer on your funds, however provided that you handle the additional revenue 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 sooner.
5. I spent cash on credit score however I used to be sensible about it
Despite the fact 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 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 quite than a standard 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 a number of errors early on—spending slightly greater than I ought to have at occasions—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 prevented carrying a stability: 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 commonly, I ensured I used to be staying inside my price range and never overspending.
- I used credit score for obligatory 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.
- I monitored my credit score rating: I checked my credit score reviews commonly to remain on high 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 instrument. The hot button is 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 standard bank card to keep away from carrying a stability.
- All the time 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 life-style inflation or impulse spending.
Intelligent Woman Tip: It doesn’t matter what form of credit score you utilize, all the time keep on high of your credit score report—errors and fraud can have an effect on your capacity to get loans, hire an condominium, and even get a job.
Knowledgeable tip: It’s about what you retain
The most important 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, retaining bills low, and making strategic monetary selections will assist you to construct wealth sooner 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 relies on your revenue, bills, and dedication to saving. Should you 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 revenue?
Completely. My story proves that you just don’t must earn a large wage to avoid wasting a considerable quantity—you simply should be intentional with the way you save, spend, and make investments. The hot button is to begin the place you might be, deal with what you possibly can 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 fundamental investing ideas fully modified how I approached cash. That’s why I later wrote my very own ebook collection, beginning with Intelligent Woman Finance: Ditch Debt, Save Cash & Construct Actual Wealth—the information I want I had in the beginning of my journey.
Ought to I make investments or hold my financial savings in money?
A mixture of each is good. 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 most important mistake individuals make when attempting to avoid wasting?
Life-style inflation—whenever you improve 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 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 correct mindset, technique, and consistency.
Even in the event you’re not able to avoid wasting $100k proper now, don’t be discouraged. Possibly you will have 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 serious 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:
- Assess your present monetary scenario: Take a deep dive into your revenue, bills, and debt. Understanding the place you stand is step one to creating progress.
- Set a practical financial savings goal: If $100k feels overwhelming, begin with $10k, then work your approach up. Small wins construct momentum.
- Create a saving technique: Whether or not it’s slicing bills, growing revenue, or automating financial savings, make a plan that matches your life-style.
- Keep constant and affected person: Saving cash takes time, however staying centered in your objective will result in actual progress.
- Put money into your monetary training: Studying about cash administration, investing, and wealth-building will assist you to make smarter choices.
I do know from expertise that adjusting your mindset is simply as necessary because the money-saving techniques themselves. As a substitute of occupied with 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 objectives.