Save 100k in 3 years was no easy task, but I was fortunate to have my mother’s assistance, who worked relentlessly to help pay for all four years of my private college tuition (about $35,000 each year).I recognize that most individuals do not have the benefit of their parent’s assistance. Instead, students must fund their own education or take out student loans. (I hope that one day, education will be more inexpensive so that my luck isn’t simply “luck,” but rather a typical occurrence.)
Seeing my mum work so hard pushed me to be frugal with my own money. Thus, after graduating from college, I set a goal of accumulating $100,000 to invest in my retirement accounts, emergency money, and other investment accounts. I was able to achieve it through listening to others, reading books, and trial and error. These are the five most essential money-saving ideas I discovered throughout those three years.
Here are 5 Tips for How can I save 100k in 3 years
1. Contribute to your 401(k)
This may seem obvious to save 100k in 3 years, yet three out of every four Americans say their worst financial mistake was not contributing in their 401(k) as soon as possible. I got my first full-time work at a technology consulting business when I was 24. I had a beginning salary of $54,000 and contributed 15% of it to my 401(k) (k).
My company matched 100% of the first 6% I contributed at the time. My money had grown to about $40,000 three and a half years later, owing to the miracle of compound interest and great market returns.If your firm has an employee-matching program, take advantage of it right away and contribute the maximum amount allowed. Can’t afford to go all-in right away? Consider raising your donations by 1% each quarter until you reach your goal.
If you are unable to participate in an employer-sponsored plan, you may invest in individual retirement accounts such as a Roth IRA or a regular IRA.
2. Reduce your spending as minimally as possible.
To save 100k in 3 years, Most of my friends couldn’t wait to get out of college and get their apartments, but I chose to remain at home with my parents for six months. I obtained my own apartment in New Jersey after saving enough money. Even so, I continued to live frugally and kept my spending to a minimum by:
- Relocating close to work: I picked a place close to my office in order to save money on commuting.
- Making a lunch:
- Going out for lunch every day during the workweek would have cost me around $10 each meal on average. Thus by packing my own meals, I saved around $2,500 each year.
Not going out every night: It was difficult to skip evenings out since it meant saying no and feeling left out. Making friends with folks who had similar financial objectives, on the other hand, was really beneficial. (When I did go out, I avoided expensive products such as theater popcorn and pricey beverages). Cutting cable: Unless you’re a great sports fan, you may save a lot by cutting the cord. And you could be better off switching to an internet streaming service like Netflix, Hulu, or YouTube TV these days.
1. Cell phone bill negotiation:
Mobile phone plans may be prohibitively costly, particularly when it comes to data. It’s always worth contacting your service provider to discuss strategies to reduce your cost. You’d be astonished by the exclusive prices and offers available if you’re a devoted — and exceedingly persistent — client.
2. Saving money on groceries:
Make sure you have a full stomach and a list of products you want to purchase before you go to the grocery shop. That way, you won’t get distracted by unnecessary purchases or food cravings that arise while you’re there. Coupons are also useful!
3. Getting rid of unneeded memberships and subscriptions:
Make it a practice to go through your bank accounts every month to check if there are any subscription services you don’t need or can do without. If you’re afraid that cancelling your gym membership would mean you’ll never exercise again, push yourself to come up with new methods to work out (e.g., running outdoors or working out with YouTube videos).
3. Save aside 40% to 50% of your income.
Increasing your money entails more than simply keeping your spending low; it also entails establishing a strategy to save what you have left over. During my first year of employment, after my 401(k), taxes, and other deductions, I was making between $1,350 and $1,400 every biweekly paycheck. I attempted to save $500 to $700 from each salary, as well as my whole $1,500 annual bonus. It’s not much, but it’s something! Every year, I also saved the majority of my tax returns.
Another tip: if I obtained a promotion, I continued to live on my previous budget in order to save the whole amount of my increase. (At the conclusion of my third year at work, my pay after taxes was about $74,000.) As a consequence, I saved an average of $18,000 every year. and save 100k in 3 years from my full-time employment. Making my finances more automated by having money automatically sent to my savings account makes things a lot simpler to save 100k in 3 years.
4. Begin a secondary business
I got highly interested in photography during my second year of saving. I bought a low-cost DSLR camera and decided to establish a side business as a lifestyle and wedding photographer. To begin to save 100k in 3 years, I studied my skill and performed a lot of free work. As I grew better, I started to increase my charges. After a few months, my company had grown and become quite successful. Networking with other photographers was advantageous since they may recommend me to new customers.
Operating a side company while working a full-time job was difficult, but it was worthwhile: My earnings in the first year of my company were approximately $10,000; in the second year, they were over $30,000; and in future years, they only increased. About the same time, I began studying about investing outside of retirement plans and invested part of the proceeds from my photography company. This contributed to save 100k in 3 years. Consider launching a side business if you have a passion or skill set that others often commend you on. You may also get additional income by selling electronics, clothes, shoes or anything else you no longer use.
5. Avoid comparing yourself to others.
You’ve certainly heard the expression “comparison is the thief of joy,” and it’s true. People often spend money they don’t have on things they don’t need, generally because someone else has it or expects them to have it. You should never feel compelled to spend money in order to impress others. If you do, you may find yourself competing much beyond your budget’s capacity. Be content with what you have and disregard what others think. Of course, I rewarded myself with purchases, but only those that made me genuinely pleased.
I always reminded myself to save 100k in 3 years and that future planning should always come first. Those who flaunt their costly clothing and automobiles on Instagram are likely to regret their purchases once they examine their finances and realize how distant they are from financial freedom. Time flies, and preparing for the future might enable you to enjoy retirement without having to rely on the government or your children to look after you. This are ways to save 100k in 3 years.
