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Have you ever ever questioned if it’s doable to avoid wasting $100,000 in just some 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 capable of save over $100,000 in somewhat 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 targets. 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 at all times 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 way of a mix of strategic saving, sensible investing, and disciplined spending, I used to be capable of construct my financial savings account past what I initially thought doable.
So, should you’ve been questioning:
- How can I save $100,000 in just a few years?
- Is it reasonable 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, chopping bills, investing properly, and even beginning a worthwhile facet hustle—so you possibly can 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 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 spotted that reaching a six-figure financial savings purpose was doable with the best 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 strengthened the concept monetary independence wasn’t only for excessive earners. It was about being intentional with my cash, making sensible selections, 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 give attention to 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 revenue for a current 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 annually, 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
Regardless 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 completely by myself. No inheritance, no monetary assist from a accomplice, and no windfall.
I used to be single with no youngsters 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 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 targets.
1. I Contributed to My 401(ok) and took full benefit of my employer match
After 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 by means of 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 significant 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(ok), persistently contributing from the start made an enormous distinction.
What you possibly can be taught from this technique
- Begin investing as early as doable: 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 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 elevate.
Intelligent Lady Tip: Investing is a key a part of saving cash for the long run. When you have entry to a 401(ok), 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 be taught extra about investing? Try my ebook: Be taught How Investing Works, Develop Your Cash!
2. I saved my bills low
Some of the essential issues I did to achieve my $100k financial savings purpose was protecting my bills as little as doable. Many individuals focus solely on growing their revenue, however should you 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(ok) contributions, and different deductions, I needed to be strategic with how I managed the remainder of my revenue. My primary 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 protecting my housing and transportation prices manageable, I freed up extra money to avoid wasting.
For the primary six months after school, 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 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 fuel bills have been low.
I additionally averted 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 cellphone bills have been round $170 mixed every month, which I thought of cheap.
What you possibly can be taught from this technique
Conserving bills low is likely one of 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. In the event you can cut back your dwelling prices preserve a way of life, you’ll have extra room to avoid wasting:
- Take into account dwelling with household or getting roommates quickly if doable 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 elevate doesn’t imply it’s essential to enhance your spending.
Intelligent Lady Tip: In case your purpose is to avoid wasting a major sum of money, lowering bills must be considered one of your first areas of focus. Attempt dwelling near work to avoid wasting on commuting prices, pack your lunches, and lower 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 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 proportion of my revenue whereas I used to be capable of. 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 purpose 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 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 capable of 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 be taught from this technique
A giant financial savings purpose requires an intentional plan to place cash apart repeatedly. 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 proportion of your revenue and keep on with 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 additional spending cash.
- In the event you get a elevate, enhance your financial savings proportion earlier than adjusting your life-style.
Intelligent Lady Tip: Relating to the way 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 robust 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 pastime shortly changed into a worthwhile life-style and wedding ceremony pictures enterprise. To get began, I used a few of my financial savings to spend money on an entry-level DSLR digicam. I hung out 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 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 arduous work and dedication, my facet hustle performed a key position in reaching my financial savings purpose.
You possibly can try my ebook, The Facet 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:
- I reinvested in my enterprise: I upgraded my digicam 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 additional revenue 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 may have saved much more if I had been extra disciplined with my facet hustle earnings.
If you wish to enhance your financial savings price, take into account beginning a facet hustle. Incomes additional revenue—even just a few hundred {dollars} a month—can considerably pace up your financial savings.
- Select a facet 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 properly, however don’t neglect to prioritize saving a portion of your earnings.
- Use facet hustle revenue to pay down debt, enhance financial savings, or make investments for the long run.
Intelligent Lady Tip: A facet hustle is usually a game-changer to your funds, however provided that you handle the additional revenue properly. As an alternative 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 sensible about it
Regardless 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 reasonably 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 somewhat 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 properly
- 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 repeatedly, I ensured I used to be staying inside my funds and never overspending.
- I used credit score for crucial 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 studies repeatedly 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 properly, it may be a useful monetary software. The secret is controlling your spending and ensuring you possibly can 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 expenses and debt accumulation.
- Monitor your credit score rating and credit score historical past to make sure accuracy and defend your monetary status.
- Use credit score for strategic purchases—not for life-style inflation or impulse spending.
Intelligent Lady Tip: It doesn’t matter what form of credit score you utilize, at all times keep on high of your credit score report—errors and fraud can have an effect on your capacity to get loans, lease 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, protecting bills low, and making strategic monetary selections will make it easier to construct wealth quicker than you assume.
Generally requested questions on my $100k financial savings journey
Is it reasonable to avoid wasting $100k in 3 years?
Sure, but it surely depends upon your revenue, bills, and dedication to saving. In the event you maximize your earnings, preserve 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 simply don’t must earn an enormous 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 start out the place you’re, give attention to 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 consultants, and understanding primary investing ideas fully modified how I approached cash. That’s why I later wrote my very own ebook collection, beginning with Intelligent Lady 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 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 largest 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 lure 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 best mindset, technique, and consistency.
Even should you’re not able to avoid wasting $100k proper now, don’t be discouraged. Perhaps you’ve scholar loans, bank card debt, or household obligations that make saving troublesome. That doesn’t imply you possibly can’t begin the place you’re and work towards a significant financial savings purpose over time. Whether or not you’re saving for a home down cost, monetary independence, or simply constructing a stable 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 sensible 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 chopping 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 targeted in your purpose will result in actual progress.
- Spend money on your monetary schooling: Studying about cash administration, investing, and wealth-building will make it easier to make smarter selections.
I do know from expertise that adjusting your mindset is simply as essential because the money-saving ways themselves. As an alternative of enthusiastic 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.
