How to save $100k: I did it in 3 years

=

Have you ever wondered if you could save $100,000 in just a few years? I’m here to tell you it is! In this post I share my personal money story and break down exactly how I can save over $100,000 in over three years, starting with a modest salary.

I share these money-saving strategies to not only emphasize your journey, but also inspire and empower you to achieve your own financial goals. Whether you’re aiming to hit a $10,000 milestone or simply looking for ways to save more effectively, I hope my experiences and tips will serve as a motivator.

Why is my story important to you?

Many people think that in order to save six digits you need to get a six digit number, but that’s not necessarily the case. I started with a $54,000 salary ($40,000 after tax) and worked my way. I didn’t come from wealth, I had no inheritance, and I didn’t rely on my partner’s income. This is completely something I did myself. The combination of strategic savings, wise investments and disciplined spending allowed me to build a savings account more than I initially thought possible.

So, if you’re wondering:

• How can I save $100,000 in a few years?
• Is it realistic to save $100,000 on average income?
• What steps should we take to achieve our savings goals?

You are in the right place. I’ll break down the exact measures I took. By maximizing your income, reducing costs, wise investments, and even starting a fuss on the profitable side, you can create a roadmap for economic success.

Starting My Journey: How I Started Saving $100k

As mentioned before, when I graduated from college, I landed my first full-time job with a starting salary of $54,000. At the time I was excited to have a stable salary. Saving a lot of money wasn’t something I originally planned to do, but when I began to learn more about personal finance, I realized that it was possible to reach a six-figure savings goal with the right strategy and discipline.

After just three and a half years, I saved over $100,000. Hitting this important financial milestone was a game changer for me. It reinforced the idea that economic independence is not just for high-income people. It was about being intentional with my money, making wise decisions and being consistent.

What worked out in my favor

We firmly believe that anyone can implement smart saving strategies, but we also recognize that there are several benefits that will help you reach your goals faster.

I was lucky enough to not have a student loan: Thanks to my incredibly hardworking mother (who paid my college tuition in cash), partial scholarships and campus work, I graduated from debt. This allowed me to focus on building my savings rather than paying off my loan.

I had a good starting salary: Earning $40,000 after tax was a solid income for recent college graduates.

My salary has grown over time: I received annual salary increases, bonuses and promotions, and by the end of 3.5 years I had increased my salary to $74,000 ($52,000 after tax). Although it’s not a six-figure salary, stable income growth has helped me accelerate my savings.

What’s really important

I had these benefits, but what really made the difference was my commitment to saving and managing my money wisely. I created a habit that guaranteed I saved most of all my pay, no matter how much I was earning.

I completely saved this money myself. There is no inheritance, no financial assistance from partners, and no windfall.
I was single without children and lived with one income. There was no second salary to contribute to my household.
I did it without getting the six numbers. High pay is helpful, but disciplined savings habits are even more important.

How to save $100,000 in 3 years: My key strategy

With the background of my financial journey, just 3. Let’s dive into certain financial saving strategies that will help you reach $100,000 in five years. These are practical and reproducible steps that anyone can apply to their financial goals.

1. I contributed to 401(k) and made the most out of my employer’s match

When I first started working, I had no idea what the 401(k) was or why I needed it. All I knew was that my employer was offering free money throughout the 401(k) match and I wasn’t trying to leave it on the table.

How to maximize the contribution of 401(k)

At the time, my employer coincided with the first 6% of the pre-tax dollars I contributed to. I started to contribute quickly and worked to save about 15% of my salary.

3. Over five years, my contribution, coupled with employer matching and stock market growth, has reached up to about $40,000 in my retirement account.

This was also before a massive US recession, so the stock market was working well and my investments grew over time. I didn’t maximize the 401(k), but consistent contributions from the start made a huge difference.

what You can learn from this strategy

• Start your investment as soon as possible: Time in the market is more important than the market timing.
• If your employer is offering a match, take it: It’s literally free money that will help you build wealth faster.
• Increase your contribution over time: If the maximum output is not feasible immediately, start small and increase by 1% each quarter or with each pay raise.

Tips for smart girls: Investing is an important part of saving money in the long term. If you have access to a 401(k), an individual retirement account (IRA), or another retirement plan, start your contribution as soon as possible, even for a small amount. Your future self will thank you.

Want to learn more about investments? Check out my book: Learn how investments work and grow your money!

2. I kept my expenses low

One of the most important things I did to achieve my $10,000 savings goal was to keep costs as low as possible. Many people focus solely on increasing income, but without controlling your spending, you will always feel that you are not enough, no matter how much you earn.

After taxes, 401(k) contributions and other deductions, I had to be strategic about how I managed my remaining income. My main expenses included paying for a used car (initially $150, $300 when I upgraded my car), car insurance ($80), and mortgage ($900). By making housing and transportation costs easier to manage, I freed up more money to save money.

For the first six months after college, I lived at home, which helped me build my first savings cushion. Once I moved to my place, I kept my expenses low, keeping my costs low, avoiding lifestyle inflation, aka lifestyle creep. I rarely ate, I didn’t cook much, so my grocery bill was minimal, and I didn’t splurge on alcohol or expensive entertainment. Many of my work lunches were refunded for my frequent trips and as I lived near my office the gas costs were low.

I also avoided expensive shopping habits. I had planned my vacation and allowed myself some fun money to shop at times, but at the time I had no expensive hobbies or extravagant spending habits. My utility bills, internet and phone costs were combined at around $170 a month, which I thought was reasonable.

What you can learn from this strategy

Keeping costs low is one of the fastest ways to accelerate your savings. How important is the amount of money you keep up, even if you’re not earning a high salary? If you can cut your living expenses and maintain your standard of living, there will be more room to save.

• Consider living with your family or finding a roommate Temporarily to jump your savings if possible.
• Reduce food costs Due to restrictions on meal preparation, cooking at home and takeout.
• Reduce unnecessary subscriptions and negotiate your invoice Like the internet or insurance.
• Avoid lifestyle inflation– Getting a salary increase doesn’t mean you need to increase your spending.

Tips for smart girls: If your goal is to save a lot of money, reducing costs should be one of your first focus areas. Try to save on commute costs, pack lunch and get closer to work to cut off unnecessary spending (stick to essentials). Even small savings can increase over time and make a huge difference in your financial progress.

3. Focused on saving 40% to 50% of each salary.

Cutting costs was only part of my strategy. What really helps me build my savings right away was working to save a large portion of my income while I could. From the beginning, I was aiming to save 40% to 50% of each salary as well as save the extra money I received.

After taxes, 401(k) contributions and deductions, my first year takeaway salary was around $1,350 to $1,400 per salary. My goal was to save $500-$700 per salary. This wasn’t difficult because I kept my costs low. Over time, it became a habit.

Beyond my regular savings, I tried to save all my annual bonuses (it ended up at about $1,500 early on after tax). I also saved money instead of spending most of my tax refunds.

Consistently, I was able to save about $18,000 a year from my full-time job with cash. 3. By the end of five years, I had saved more than $50,000 in cash savings (high yield savings accounts, many of which I would invest later).

What you can learn from this strategy

Big savings goals require intentional planning to keep your money aside on a regular basis. It’s not just about cutting costs. It’s about first deciding to save money and adjusting your spending to that decision.

• Set a specific savings rate Stick to your income and it.
• Automate savings So the money will be moved to another account before you have the opportunity to spend it.
• Unexpected save Instead of treating income such as bonuses, tax refunds, cash gifts, and other income as money for additional expenditures.
• If you receive a salary increase, increase your savings rate Before you adjust your lifestyle.

Tips for smart girls: When it comes to how to save $100,000, it’s about not only reducing costs, but being proactive about savings. I made an unnegotiable saver by setting up automatic transfers in my high profit savings account. By treating my savings like a bill I had to pay, I didn’t have to resort to willpower alone.

4. I started side hustle

One of my biggest boosts to saving was to start side hustles. Rescuing me from my full-time job helped me build a strong foundation, but the business on my side accelerated my progress and pushed me up above the $100,000 mark.

In my second year of savings, I was passionate about photography. What started out as a hobby quickly transformed into a profitable lifestyle and wedding photography business. To get started, I used some of my savings to invest in an entry-level DSLR camera. I spent my time studying my craft, taking free shoots to build my portfolio, and learning from more experienced photographers.

As my skills improved, I started booking paid gigs and within a few months my business began to grow. I networked with the photographer who let me take a second shot for them.

By the end of my first year, I was making about $10,000 from my side business. By my second year, those numbers jumped to $30,000 and earned more the next year. It took effort and dedication, but the hustle on my side played an important role in achieving my savings goals.

You can check my book, Side Hustle GuideFor my best tips and advice on building a successful side hustle.

That I was the money that was hustle on my side

I used the stolen side in three important ways:

1. I reinvest in my business: Upgraded camera gear, lighting and equipment to improve work quality. I also took an online course to improve my photography and marketing skills.
2. Saved a large portion of revenue: This extra income allowed me to save more cash and invest more aggressively.
3. I’ve been hooked on some splurges: I don’t lie, I’ve had a handbag obsession for a while! I later sold many of them, but looking back, I know I could have saved even more if I had been more trained in the hustle on my side.

If you want to increase your savings rate, consider starting a side hustle. Earning additional income can significantly speed up savings, even hundreds of dollars a month.

• Choose a side hustle that matches your skills and interests To maintain motivation.
• Start small but be consistent– Several hours per week may be added over time.
• Reinvest in your business wiselybut don’t forget to prioritize saving a portion of your revenue.
• Use side hustle income to pay off debt, promote savings, and invest in the long term.

Tips for smart girls: Side hustles can be a game changer for your finances, but that’s only if you manage your extra income wisely. Instead of increasing your spending, use your side of us to fund your financial goals. It can be key to reaching your savings goals even faster.

5. I spent money on credits, but I was smart about it

I was focused on saving, but I was still using my credit card, but I tried to do that strategically. Instead of acquiring unnecessary debt, we used credits to build credit history, earn rewards, and use them as a tool to manage expenses responsibly.

One important way to control credit usage was primarily to use billing cards rather than traditional credit cards. Like American Express Gold, the charging card requires you to pay your balance in full each month, preventing me from harboring high profit debt.

You had to prepare a fee card for work-related travel expenses, but why not get one for yourself too? I made some mistakes early on, but sometimes I spent a little more than I should have, but the charge card helped me develop strong financial discipline as I had to pay it off completely on each billing cycle.

How to use credits wisely

1. I avoided balancing: I fully repaid my fee card every month. So it helped me build a strong credit history without accumulating interest.
2. I tracked my spending: By reviewing the statements regularly, I have ensured that I remained within my budget and not overexpenditure.
3. I used credits for the required expenses: I charged work-related travel and daily expenses, but I always had cash to pay back immediately.
4. I monitored my credit score: I regularly checked my credit reports to get a sense of my financial health and to make sure there were no errors or fraudulent activities.

Using credits is not a bad thing. If used wisely, it becomes a useful financial tool. The key is to control your spending and ensure you can pay off your balance completely each month.

• Consider using a fee card instead of a traditional credit card Don’t balance it.
• everytime Full credit card payment To avoid accumulation of interest charges and debts.
• Monitor your credit score and credit history To ensure accuracy and protect your financial reputation.
• Please use credits Strategic Purchase-No lifestyle inflation or impulse spending.

Tips for smart girls: No matter what type of credit you use, always keep an eye on your credit report. Errors and fraud can affect your ability to get a loan, rent an apartment, or get a job.

Expert Tips: It’s about what you keep

The biggest factor in reaching a high savings goal isn’t how much you save. It’s how much you keep. Automate savings, keep costs low, and strategic financial choices will help you build wealth faster.

Generally asked about my $100,000 savings journey

Is it realistic to save $100,000 over three years?

Yes, but it depends on your income, expenses and commitment to savings. Maximizing revenue, keeping costs low and investing strategically is achievable without a six-figure salary.

Can you save $10,000 without high income?

absolutely. My story proves that you don’t need to earn a massive salary to save a significant amount of money. The key is to start where you are, focus on what you can control, and build momentum over time.

I would also like to emphasize that self-education played a major role in my success. Reading personal finance books, learning from experts and understanding basic investment concepts has completely changed the way I approach money. So I wrote my book series later, A smart girl’s finances: throw away debt, save money, build real wealth– Guide I wish I had it at the beginning of my journey.

Do I need to invest or maintain my savings in cash?

A mix of both is ideal. You will store your emergency funds in cash, but the rest will be invested in a retirement account (401K, IRA) or securities account to increase your money over time.

What are the biggest mistakes people make when trying to save?

Lifestyle inflation – when you increase your spending as your income grows, rather than saving extra money. Avoid this trap by prioritizing preservation and investments first before adjusting your lifestyle.

Articles related to saving and earning more money

If you enjoyed this article about how I saved $10,000, check out this related content.

Save $100,000

These are the exact steps I took to save $100,000 over three years, and if I could do that, you could too. Everyone’s financial situations are different, but the key point is that it is possible to save a significant amount of money with the right mindset, strategy and consistency.

Don’t be discouraged if you’re not in a position to save $100,000 right now. There may be student loans, credit card debt, or family obligations that make saving difficult. That doesn’t mean you can’t start where you are and work towards a big savings goal over time. All dollars are counted whether you save for a down payment of your home, financial independence, or simply building a solid emergency fund.

Don’t forget:

1. Assess your current financial situation: Dive deeply into your income, expenses and debt. Understanding where you stand is the first step in making progress.
2. Set realistic saving goals: If you feel that $10,000 is overwhelming, start with $10,000 and then follow your path. Small victories gain momentum.
3. Create a conservation strategy: Plan your lifestyle-oriented plans, such as reducing costs, increasing income, and automating savings.
4. Stay consistent and patient: It takes time to save money, but focusing on your goals will lead to real progress.
5. Invest in your financial education:Learning about managing money, investing, and building wealth can help you make smarter decisions.

From experience, I know that adjusting your way of thinking is just as important as the money-saving tactics themselves. Not what you think you can’t Do you have time? you can’t Shift your focus to what you have control over: your spending habits, your income potential, and your long-term goals.