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

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Have you ever ever questioned if it’s potential to avoid wasting $100,000 in just some years—with out incomes a six-figure wage? I’m right here to inform you that it’s! On this publish, I’ll share my private cash story and break down precisely how I used to be capable of save over $100,000 in just a little 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 realize your personal monetary targets. 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 ideas 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 companion’s revenue—I did this fully alone. By means of a mixture of strategic saving, good investing, and disciplined spending, I used to be capable of 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 couple of years?
• Is it lifelike to avoid wasting $100k on a median revenue?
• What steps ought to I take to achieve my financial savings targets?

You’re in the fitting 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’ll be able to create your personal 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 12 months. 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 spotted that reaching a six-figure financial savings purpose was potential with the fitting 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 good choices, 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 couple of benefits that helped me attain my purpose sooner:

I used to be lucky sufficient to haven’t any pupil 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 beginning wage: Incomes $40,000 after taxes was a strong 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 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

Though 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 totally alone. No inheritance, no monetary assist from a companion, 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 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 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 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 properly, and my investments grew over time. Though I didn’t max out my 401(okay), persistently contributing from the start made an enormous distinction.

What you’ll be able to be taught from this technique

• Begin investing as early as potential: Time available in the market 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 sooner.
• Enhance your contributions over time: If maxing out isn’t possible straight away, 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(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 be taught 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 vital issues I did to achieve my $100k financial savings purpose was conserving my bills as little as potential. Many individuals focus solely on rising 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(okay) contributions, and different deductions, I needed to be strategic with how I managed the remainder of my revenue. My principal 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 conserving my housing and transportation prices manageable, I freed up more cash 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 way of life inflation AKA way of life 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 purchasing habits. Whereas I did permit 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 have been round $170 mixed every month, which I thought of cheap.

What you’ll be able to be taught from this technique

Holding bills low is without doubt 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. In case you can scale 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 potential to jumpstart your financial savings.
• Scale back meals bills by meal prepping, cooking at dwelling, and limiting takeout.
• Minimize 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 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 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 (persist with your requirements). Even small financial savings add up over time and may make an enormous distinction in your monetary progress.

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

Decreasing 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 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(okay) contributions, and deductions, my take-home pay throughout my first 12 months 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 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 capable of save round $18,000 per 12 months 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 might later make investments), which was an enormous a part of my $100k milestone.

What you’ll be able to be taught from this technique

An enormous financial savings purpose 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 selected financial savings proportion of your revenue and persist with it.
• Automate financial savings so the cash strikes to a separate account earlier than you may have an opportunity to spend it.
• Save sudden revenue like bonuses, tax refunds, and money items as an alternative of treating them as further spending cash.
• In case you get a elevate, enhance your financial savings proportion earlier than adjusting your way of life.

Intelligent Woman Tip: In relation to easy methods to save $100k, it’s not nearly reducing bills however being proactive about saving. I made saving non-negotiable by organising automated 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 greatest 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 12 months of saving, I developed a ardour for images. What began as a pastime rapidly become a worthwhile way of life and marriage ceremony images enterprise. To get began, I used a few of my financial savings to put money into an entry-level DSLR digital camera. 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 a couple 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 12 months, I had earned round $10,000 from my facet enterprise. By my second 12 months, 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 function in reaching my financial savings purpose.

You possibly can try my ebook, The Facet Hustle Information, for all my finest ideas 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 tools to extend the standard of my work. I additionally took on-line programs to enhance my images and advertising expertise.
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 a couple of 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 might have saved much more if I had been extra disciplined with my facet hustle earnings.

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

• Select a facet hustle that aligns together with your expertise or pursuits to maintain you motivated.
• Begin small, however be constant—a couple of hours every week can add up over time.
• Reinvest in what you are promoting properly, however don’t overlook 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 Woman Tip: A facet hustle is usually a game-changer on 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 sooner.

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

Though I used to be centered on saving, I nonetheless used bank cards—however I made certain to take action strategically. As a substitute of racking up pointless debt, I used credit score as a device 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 slightly 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 couple of errors early on—spending just a little 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

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 price range and never overspending.
3. I used credit score for mandatory 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 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 need to be unhealthy—if used properly, it may be a useful monetary device. The secret is controlling your spending and ensuring you’ll be able to 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 prices and debt accumulation.
• Monitor your credit score rating and credit score historical past to make sure accuracy and defend your monetary fame.
• Use credit score for strategic purchases—not for way of life inflation or impulse spending.

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

Professional 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, conserving bills low, and making strategic monetary selections will show you how to construct wealth sooner than you assume.

Generally requested questions on my $100k financial savings journey

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

Sure, nevertheless it is dependent upon your revenue, bills, and dedication to saving. In case you 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 revenue?

Completely. My story proves that you simply don’t have to 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 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 need to spotlight that self-education performed an enormous function in my success. Studying private finance books, studying from specialists, 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 Woman Finance: Ditch Debt, Save Cash & Construct Actual Wealth—the information I want I had firstly 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 most important mistake folks make when attempting to avoid wasting?

Way of life inflation—if 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 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 scenario is completely different, the important thing takeaway is that saving a major sum of money is feasible with the fitting mindset, technique, and consistency.

Even in the event you’re not able to avoid wasting $100k proper now, don’t be discouraged. Possibly you may have pupil 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 cost, monetary independence, or simply constructing a strong emergency fund, each single greenback counts.

Keep in mind to:

1. 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.
2. Set a sensible financial savings goal: If $100k feels overwhelming, begin with $10k, then work your approach 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 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 training: Studying about cash administration, investing, and wealth-building will show you how to make smarter choices.

I do know from expertise that adjusting your mindset is simply as vital because the money-saving ways themselves. As a substitute of desirous 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 revenue potential, and your long-term targets.