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

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Have you ever ever puzzled if it’s attainable 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 a bit of 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 achieve your own financial goals. 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 at all times the case. I began with a $54,000 wage ($40,000 after taxes) and labored my manner up. I didn’t come from wealth, didn’t have an inheritance, and didn’t depend on a associate’s revenue—I did this fully by myself. Via 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 attainable.

So, in the event you’ve been questioning:

• How can I save $100,000 in a number of years?
• Is it real looking to avoid wasting $100k on a median revenue?
• 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 revenue, chopping bills, investing properly, and even starting a profitable side 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 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 12 months. 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 purpose was attainable with the suitable 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 good selections, and staying constant.

What labored in my favor

Whereas I firmly imagine 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: 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 deal with constructing financial savings as an alternative of paying off loans.

I had an excellent beginning wage: Incomes $40,000 after taxes was a stable revenue for a current faculty graduate, giving me room to avoid wasting whereas nonetheless masking 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 tip 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 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 by myself. No inheritance, no monetary assist from a associate, 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 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(k) was or why I wanted one. All I knew was that my employer was providing free money through a 401(k) 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 manner 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 major U.S. recession, so the inventory market was performing effectively, and my investments grew over time. Although I didn’t max out my 401(okay), constantly contributing from the start made an enormous distinction.

What you may be taught from this technique

• Begin investing as early as attainable: 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.
• Improve your contributions over time: If maxing out isn’t possible immediately, 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. In case you have entry to a 401(okay), Particular person Retirement Account (IRA), or one other retirement plan, begin contributing as quickly as attainable—even when it’s only a small quantity. Your future self will thanks.

Wish to be taught extra about investing? Try my e-book: Learn How Investing Works, Grow Your Money!

2. I stored my bills low

One of the vital issues I did to achieve my $100k financial savings purpose was keeping my expenses as low as possible. 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 at all times 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 predominant 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 conserving my housing and transportation prices manageable, I freed up extra money to avoid wasting.

For the primary six months after faculty, 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 lifestyle inflation AKA lifestyle 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 resulting from my frequent journey, and I lived near my workplace, so fuel bills have been low.

I additionally prevented costly purchasing habits. Whereas I did enable 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 telephone bills have been round $170 mixed every month, which I thought-about cheap.

What you may be taught from this technique

Preserving bills low is among 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. If you happen to can cut back your dwelling prices keep a lifestyle, you’ll have extra room to avoid wasting:

• Contemplate dwelling with household or getting roommates briefly if attainable to jumpstart your financial savings.
• Scale back meals bills by meal prepping, cooking at house, and limiting takeout.
• Reduce pointless subscriptions and negotiate payments like web and insurance coverage.
• Keep away from way of life inflation—simply since you get a increase doesn’t imply you must improve your spending.

Intelligent Woman Tip: In case your purpose is to avoid wasting a big amount of cash, lowering bills needs to be one in every of your first areas of focus. Attempt dwelling near work to avoid wasting on commuting prices, pack your lunches, and reduce 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 further

Decreasing 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 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 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 stored 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 in a position to save round $18,000 per 12 months 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 variety 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

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 selected financial savings share of your revenue and keep on with it.
• Automate financial savings so the cash strikes to a separate account earlier than you may have an opportunity to spend it.
• Save surprising revenue like bonuses, tax refunds, and money items as an alternative of treating them as further spending cash.
• If you happen to get a increase, improve your financial savings share earlier than adjusting your way of life.

Intelligent Woman Tip: With regards to easy methods to save $100k, it’s not nearly decreasing bills however being proactive about saving. I made saving non-negotiable by establishing 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 robust 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 pictures. What began as a pastime shortly changed into a worthwhile way of life and marriage ceremony pictures enterprise. To get began, I used a few of my financial savings to put money into 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 expertise 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 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 onerous work and dedication, my facet hustle performed a key function in reaching my financial savings purpose.

You’ll be able to try my e-book, The Side Hustle Guide, 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 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 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 number of splurges: I received’t lie, I had a handbag obsession for some time! I later bought lots 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 improve your financial savings charge, contemplate beginning a facet hustle. Incomes further revenue—even a number of hundred {dollars} a month—can considerably velocity 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 number of hours per week can add up over time.
• Reinvest in your corporation properly, however don’t overlook 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 could be 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 good about it

Although I used to be targeted on saving, I still used credit 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 standard 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 a bit of greater than I ought to have at occasions—the cost card helped me develop strong financial discipline as a result of I needed to pay it off in full every billing cycle.

How I used credit score properly

1. 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.
2. I tracked my spending: By reviewing my statements repeatedly, I ensured I used to be staying inside my funds and never overspending.
3. I used credit score for vital 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.
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 dangerous—if used properly, 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 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 status.
• Use credit score for strategic purchases—not for way of life inflation or impulse spending.

Intelligent Woman Tip: It doesn’t matter what type of credit score you utilize, at all times keep on prime of your credit score report—errors and fraud can have an effect on your potential to get loans, hire an residence, and even get a job.

Professional 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, conserving bills low, and making strategic monetary selections will enable you to construct wealth quicker than you suppose.

Generally requested questions on my $100k financial savings journey

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

Sure, however it will depend on your revenue, bills, and dedication to saving. If you happen to maximize your earnings, maintain 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 hot button is to start out the place you’re, deal with what you may 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 consultants, and understanding fundamental investing ideas fully modified how I approached cash. That’s why I later wrote my very own e-book sequence, beginning with Clever Girl Finance: Ditch Debt, Save Money & Build Real Wealth—the information I want I had firstly of my journey.

Ought to I make investments or maintain my financial savings in money?

A mixture of each is right. 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 making an attempt to avoid wasting?

Way of life inflation—once 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 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 amount of cash is feasible with the suitable mindset, technique, and consistency.

Even in the event you’re not ready to avoid wasting $100k proper now, don’t be discouraged. Possibly you may 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 serious 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:

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 sensible financial savings goal: If $100k feels overwhelming, begin with $10k, then work your manner up. Small wins construct momentum.
3. Create a saving technique: Whether or not it’s chopping bills, growing 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 targeted in your purpose will result in actual progress.
5. Put money into your monetary schooling: Studying about cash administration, investing, and wealth-building will enable you 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 serious about what you can’t afford or can’t do, shift your focus to what you may management—your spending habits, your revenue potential, and your long-term targets.