HOW I SAVED $100K AS A 27 YEAR OLD
The biggest contributing factor for me was increasing my income! You can only cut expenses so much, but your potential for making more money is unlimited.
It’s never been easier to increase your income — especially if you have access to a phone and internet. Let me explain… I went from working in an office to fully remote and doubling my income in 6 months. Want to know how I did it? I leveraged my transferable skills.
Then once I started making more money, I made that money work for me by opening a high yield savings account and retirement investing accounts such as a Roth IRA.
The HYSA is where we keep our emergency fund and our account earns 5.5% interest currently (this is variable, so it will change).
Our Roth IRA is where we invest for our future. Historically, the market returns ~10%, but to take inflation into account you can expect ~7% returns.
This second part is crucial once you start making more money to quickly reach your money goals! 💸
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Saving money effectively often requires a two-pronged approach: increasing income while managing expenses. One key strategy to elevate income is to explore high-demand remote job opportunities that utilize transferable skills. The digital landscape offers countless platforms, such as freelance websites and job boards, where individuals can showcase their skills to prospective employers. Once income starts to grow, it's essential to make that money work for you. Utilizing high-yield savings accounts (HYSA) not only keeps funds accessible for emergencies but also earns a competitive interest rate, which can significantly contribute to long-term savings. For retirement planning, a Roth IRA serves as an excellent vehicle to invest after-tax income while benefiting from tax-free growth. Notably, consistently investing in low-cost index funds through a Roth IRA can yield substantial returns over time, adapting with the market's ebbs and flows. Setting specific financial goals, whether they involve a major purchase like a home or building a retirement fund, allows individuals to strategize more effectively. Budgeting tools and apps can help track expenses and identify areas for savings, creating a clearer path toward financial freedom. Remember, building wealth is a marathon, not a sprint—commit to learning, adapting, and making informed financial decisions to stay on the right track!
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