You won’t believe what I did (and didn’t do!) to save 100k by 26. Building wealth isn’t what you think it is. Last week on the blog I shared three reasons why I wanted to save 100k in my twenties. Now, I’ll dive into how I saved 100k with eight things I did and (didn’t do) to save 100k.
As a heads up, I’m sharing how I saved 100k not to brag, but instead hopefully you’ll find motivation with money. If I can save a lot (earning just average pay), then you can too! Saving 100k is life changing. It’s the first milestone to gaining financial independence, security, and freedom.
Let’s start with what I didn’t do to save 100k by 26.
1. Grow up rich
First, I didn’t grow up rich or with money. My mom’s a dental hygienist and dad’s a teacher. Yes, there’s privilege in having two working parents, but I’m not a trust fund baby by any means! I didn’t receive an inheritance or large windfall from family.
The saying, ‘you need money to make money’ wasn’t part of my money journey. I started with no money! A study from Fidelity Investment reported 88% of millionaires are self-made versus born into wealth.
This is good news for you! You don’t need Kris Jenner as a mom to build wealth.
2. Make six-figures
You’d think you need to earn a ton to save and invest, right?! Wrong. The next thing I didn’t do to save 100k was make six-figures. The most I made throughout my journey to saving 100k was $63,000 a year. For a young 20-something this is a lot (especially considering this was ten years ago, I’m now 36!). However, this salary isn’t out of the ordinary!
If you’re having a hard time saving, chances are a higher income won’t help. According to Bloomberg 63% of millennials earning between $100,000- $150,000 are living paycheck to paycheck. Also, one third of all Americans earning $250,000 are living paycheck to paycheck.
Building wealth is about living below your means and consistently investing no matter how much you earn.
3. Spend hours studying the stock market
Thirdly, I wasn’t a stock market whiz or genius. Investing can seem like a foreign language, but it doesn’t need to be complicated. I didn’t spend hours evaluating individual stocks and day trading. You don’t need to either!
I’m a fan of index fund investing which is simply following the market at large. This is a passive and hands-off form of investing. I learned to basics of investing and tuned out the hype.
If you’re scared of the stock market crashing, here’s why I don’t care how stock prices went down and how to prepare for a stock market crash.
4. Miss out on travel and fun
One big misconception about saving, is if you save then you’ll have no social life. This is a lie! To save 100k, I didn’t sit at home doing nothing saving every penny.
Instead, I went on epic trips and even closed bars on 6th Street (more times than I’d like to admit!). My first international trip was three weeks in Europe. As a sixteen-year-old, I saved babysitting money and 100% paid in cash for a three-week Europe trip. I visited England, France, Greece, Turkey, Switzerland, and Italy.
The travel didn’t stop then! I’ve traveled to over 20 countries and decided to live full-time in a RV with tons of epic road trips.
You can plan for your financial future and enjoy the present!
Now here’s the unsexy truth on what I did do to save 100k.
5. Create a budget
I did create a budget and track my spending every month. Every month I forecasted my income and expenses. Then at the end of each month I entered what my actual income and expenses were. This helped me stay accountable.
Much like the saying, “a goal without a plan is just a wish,” A financial goal without a budget is just a wish!
Budgets get a bad rep, but they make your dreams a reality.
6. Automate investing and saving
A huge part of my budget was automatically investing a percentage of my pay. In the personal finance world, this is called paying yourself first. Or in other words, I saved before I had the chance to spend. I viewed investing as an automatic, non-negotiable expense every single month.
Setting up an automatic transfer the same day of each month, guaranteed I was living below my means and building wealth.
7. Work
To save 100k I did work as soon as I was old enough to earn an income. Old fashion work was key! As a preteen I babysat and refed soccer games. Then my senior year in high school, I worked part-time as a waitress. The summer before my freshman year in college I did a sales internship working 80+ hours a week. It was the same one Chip Gaines did in college!
I did sales internships every summer throughout college, working a ton in my summers and by my junior year in college, I earned a full-time income as a college student. This gave me a huge head start to save 100k!
8. Lived below my means
Lastly to save 100k by the time I was 26, I lived well below my means. In order to save a lot, I developed frugal habits like meal planning, brown baggin’ my lunch versus eating out, shopping clearance, $15 haircuts, and always had a roommate to split costs.
I learned the art of being incredibly social (while not spending a ton of money!).
In summary, if you want to save 100k, you can do it!
You don’t need to come from a wealthy family, earn six-figures, study the stock market daily, or miss out on living your life now. However, you do need a budget, automatic investing, work, and live below your means.
Up next, I’ll share my exact budget to save 100k.
❤️Carly
P.S. The fall session of Best Money Class Ever, will start November 14th. Space is limited. Get the details and save your spot now!
