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

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Have you ever ever puzzled 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 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 slightly over three years, beginning with a modest wage.

I’m sharing these money-saving methods not simply to spotlight 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 all the time the case. I began with a $54,000 wage ($40,000 after taxes) and labored my method up. I didn’t come from wealth, didn’t have an inheritance, and didn’t depend on a companion’s earnings—I did this utterly alone. By means 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 doable.

So, when you’ve been questioning:

• How can I save $100,000 in a number of years?
• Is it practical to avoid wasting $100k on a mean earnings?
• What steps ought to I take to achieve my financial savings targets?

You’re in the suitable place. I’ll break down the precise steps I took—together with maximizing my earnings, chopping bills, investing correctly, and even beginning a worthwhile facet hustle—so you may 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 suitable 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 that 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 a number of benefits that helped me attain my purpose quicker:

I used to be lucky sufficient to don’t have any scholar loans: Because of 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 a superb beginning wage: Incomes $40,000 after taxes was a stable earnings for a current school graduate, giving me room to avoid wasting whereas nonetheless protecting my primary bills.

My wage grew over time: I acquired a elevate, a bonus, and a promotion annually, growing my wage to $74,000 ($52,000 after taxes) by the tip 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 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 solely alone. No inheritance, no monetary assist from a companion, 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 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

Once I first began working, I had no thought what a 401(ok) was or why I wanted one. All I knew was that my employer was providing free cash by way 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 method 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 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 may be taught from this technique

• Begin investing as early as doable: Time out there issues greater than timing the market.
• In case your employer affords 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 Woman 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? Take a look at my e book: Study How Investing Works, Develop Your Cash!

2. I stored my bills low

Probably the most vital issues I did to achieve my $100k financial savings purpose was preserving my bills as little as doable. Many individuals focus solely on growing their earnings, however when 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 earnings. My fundamental bills included my used automotive fee ($150 at first, then $300 once I upgraded my automotive), automotive insurance coverage ($80), and my mortgage ($900). By preserving 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 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 have been reimbursed on account of my frequent journey, and I lived near my workplace, so fuel bills have been low.

I additionally prevented costly buying 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 cellphone bills have been round $170 mixed every month, which I thought-about affordable.

What you may be taught from this technique

Conserving bills low is among the quickest methods to speed up your financial savings. Even when 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:

• Contemplate dwelling with household or getting roommates quickly if doable to jumpstart your financial savings.
• Cut back meals bills by meal prepping, cooking at house, and limiting takeout.
• Lower 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 that you must enhance your spending.

Intelligent Woman Tip: In case your purpose is to avoid wasting a big sum of money, lowering bills needs to 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 (stick with 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 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 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 acquired.

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 stored my bills low, this wasn’t tough to do, and over time, it grew to become 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 tip 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 may be taught from this technique

An enormous financial savings purpose requires an intentional plan to place cash apart recurrently. It’s not nearly chopping 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 stick with it.
• Automate financial savings so the cash strikes to a separate account earlier than you could have 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.
• For those who get a elevate, enhance your financial savings share earlier than adjusting your way of life.

Intelligent Woman Tip: In relation to easy methods 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 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 images. What began as a interest shortly was a worthwhile way of life and marriage ceremony images 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 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 tip 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 exhausting work and dedication, my facet hustle performed a key function in reaching my financial savings purpose.

You may try my e book, The Aspect Hustle Information, for all my finest suggestions and recommendation on constructing a profitable facet hustle.

What I did with my facet hustle cash

I used my facet hustle earnings 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 images and advertising and marketing abilities.
2. I saved a big portion of my earnings: This further earnings allowed me to extend my money financial savings and make investments extra aggressively.
3. I indulged in a number of splurges: I gained’t lie, I had a purse obsession for some time! I later bought a lot of them, however wanting 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, contemplate beginning a facet hustle. Incomes further earnings—even a number of 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—a number of hours per week can add up over time.
• Reinvest in your small business correctly, however don’t overlook to prioritize saving a portion of your earnings.
• Use facet hustle earnings to pay down debt, increase financial savings, or make investments for the long run.

Intelligent Woman Tip: A facet hustle could be a game-changer in your funds, however provided that you handle the additional earnings correctly. 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 good about it

Despite the fact that I used to be centered 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 Specific 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 instances—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 correctly

1. I prevented 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 recurrently, 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 recurrently to remain on high 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 correctly, it may be a useful monetary software. The hot button is controlling your spending and ensuring you may 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 defend your monetary status.
• 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, all the time keep on high of your credit score report—errors and fraud can have an effect on your means to get loans, hire an condominium, and even get a job.

Knowledgeable tip: It’s about what you retain

The most important consider reaching a excessive financial savings purpose isn’t how a lot you make—it’s how a lot you retain. Automating financial savings, preserving bills low, and making strategic monetary decisions will provide help to construct wealth quicker than you assume.

Generally requested questions on my $100k financial savings journey

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

Sure, nevertheless it is determined by your earnings, bills, and dedication to saving. For those who maximize your earnings, hold 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 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 hot button is to begin the place you’re, concentrate on what you may 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 utterly modified how I approached cash. That’s why I later wrote my very own e book collection, beginning with Intelligent Woman Finance: Ditch Debt, Save Cash & Construct Actual Wealth—the information I want I had at first 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 attempting to avoid wasting?

Life-style inflation—once you enhance spending as your earnings grows as an alternative of saving the additional cash. Keep away from this lure 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 sum of money is feasible with the suitable mindset, technique, and consistency.

Even when you’re not ready to avoid wasting $100k proper now, don’t be discouraged. Perhaps you could have scholar loans, bank card debt, or household obligations that make saving tough. That doesn’t imply you may’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 fee, monetary independence, or simply constructing a stable emergency fund, each single greenback counts.

Bear in mind to:

1. 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.
2. Set a sensible financial savings goal: If $100k feels overwhelming, begin with $10k, then work your method up. Small wins construct momentum.
3. Create a saving technique: Whether or not it’s chopping bills, growing earnings, or automating financial savings, make a plan that matches your way of life.
4. Keep constant and affected person: Saving cash takes time, however staying centered in your purpose will result in actual progress.
5. Put money into your monetary schooling: Studying about cash administration, investing, and wealth-building will provide help to make smarter selections.

I do know from expertise that adjusting your mindset is simply as vital because the money-saving techniques themselves. As an alternative of desirous about what you can’t afford or can’t do, shift your focus to what you may management—your spending habits, your earnings potential, and your long-term targets.