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 only a few 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 capable of 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 realize your individual 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 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 earnings—I did this utterly 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 potential.

So, when you’ve been questioning:

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

You’re in the suitable place. I’ll break down the precise steps I took—together with maximizing my earnings, slicing 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 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 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 aim was potential 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 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 imagine that anybody can implement sensible saving methods, I additionally acknowledge that I had a couple of benefits that helped me attain my aim sooner:

I used to be lucky sufficient to haven’t 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 concentrate on constructing financial savings as an alternative of paying off loans.

I had an excellent beginning wage: Incomes $40,000 after taxes was a stable earnings for a latest faculty graduate, giving me room to avoid wasting whereas nonetheless masking 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 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 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 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 got 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 via a 401(okay) match, and I wasn’t about to depart 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 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(okay), persistently contributing from the start made an enormous distinction.

What you may be taught from this technique

• Begin investing as early as potential: Time out there 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.
• Improve your contributions over time: If maxing out isn’t possible straight away, begin small and improve 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(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.

Wish to be taught extra about investing? Try my e-book: Be taught How Investing Works, Develop Your Cash!

2. I stored my bills low

One of the vital vital issues I did to succeed in my $100k financial savings aim was maintaining my bills as little as potential. 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 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 earnings. My most important 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 maintaining my housing and transportation prices manageable, I freed up extra money to avoid wasting.

For the primary six months after faculty, I lived at residence, 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 as a result of my frequent journey, and I lived near my workplace, so gasoline bills had been low.

I additionally prevented costly procuring 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 telephone bills had been round $170 mixed every month, which I thought of cheap.

What you may be taught from this technique

Holding bills low is without doubt one of 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 residing prices keep a way of life, you’ll have extra room to avoid wasting:

• Contemplate residing with household or getting roommates briefly if potential to jumpstart your financial savings.
• Scale back meals bills by meal prepping, cooking at residence, and limiting takeout.
• Reduce 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 you have to improve your spending.

Intelligent Lady Tip: In case your aim is to avoid wasting a big sum of money, lowering bills needs to be one among your first areas of focus. Attempt residing near work to avoid wasting on commuting prices, pack your lunches, and reduce 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 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 rapidly was committing to saving a big proportion of my earnings 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 aim 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 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 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’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 aim 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 particular financial savings proportion of your earnings and persist with it.
• Automate financial savings so the cash strikes to a separate account earlier than you might have an opportunity to spend it.
• Save surprising earnings like bonuses, tax refunds, and money items as an alternative of treating them as further spending cash.
• For those who get a elevate, improve your financial savings proportion earlier than adjusting your life-style.

Intelligent Lady Tip: Relating to the way 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 pictures. What began as a passion rapidly become a worthwhile life-style and wedding ceremony pictures enterprise. To get began, I used a few of my financial savings to put money into an entry-level DSLR digicam. I hung out finding out 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 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 laborious work and dedication, my facet hustle performed a key position in reaching my financial savings aim.

You’ll be able to try my e-book, 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 earnings in three key methods:

1. 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 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 couple of splurges: I received’t lie, I had a purse obsession for some time! I later bought a lot of them, however trying 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 improve your financial savings charge, think about beginning a facet hustle. Incomes further earnings—even a couple of 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—a couple of hours per week can add up over time.
• Reinvest in your online business correctly, however don’t neglect to prioritize saving a portion of your earnings.
• Use facet hustle earnings 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 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 sooner.

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

Despite the fact that I used to be targeted on saving, I nonetheless used bank cards—however I made positive 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 moderately 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 a couple of errors early on—spending slightly greater than I ought to have at instances—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

1. I prevented carrying a steadiness: 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 essential 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 experiences 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 correctly, it may be a useful monetary software. The secret’s controlling your spending and ensuring you may 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.
• All the time pay your bank card in full to keep away from curiosity costs 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 type of credit score you employ, at all times keep on prime of your credit score report—errors and fraud can have an effect on your means to get loans, lease an house, and even get a job.

Skilled tip: It’s about what you retain

The largest consider reaching a excessive financial savings aim isn’t how a lot you make—it’s how a lot you retain. Automating financial savings, maintaining bills low, and making strategic monetary decisions will enable you construct wealth sooner than you assume.

Generally requested questions on my $100k financial savings journey

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

Sure, however it will depend on your earnings, bills, and dedication to saving. For those who 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 earnings?

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’s to begin the place you might be, concentrate on what you may management, and construct momentum over time.

I additionally wish to spotlight that self-education performed an enormous position in my success. Studying private finance books, studying from specialists, 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 Lady Finance: Ditch Debt, Save Cash & Construct Actual Wealth—the information I want I had at the start of my journey.

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

A mixture of each is good. Maintain 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—if you improve spending as your earnings 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 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. Possibly you might have pupil loans, bank card debt, or household obligations that make saving tough. That doesn’t imply you may’t begin the place you might be and work towards a significant financial savings aim 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 scenario: 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 manner up. Small wins construct momentum.
3. Create a saving technique: Whether or not it’s slicing bills, growing earnings, or automating financial savings, make a plan that matches your life-style.
4. Keep constant and affected person: Saving cash takes time, however staying targeted in your aim will result in actual progress.
5. Put money into your monetary training: Studying about cash administration, investing, and wealth-building will enable you make smarter choices.

I do know from expertise that adjusting your mindset is simply as vital 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 may management—your spending habits, your earnings potential, and your long-term targets.