How to save 100k- we did it!
Let’s be real, saving money is hard work!
Saving six figures isn’t easy, but we did it and so can you!
We’re about to teach you 5 Simple Money Moves that will help improve your finances beyond your wildest dreams.
Create a Money Saving Mentality
If you want to save 100 thousand dollars, having a money-saving mindset is critical. If you aren’t dead set on saving money there is a high chance that you won’t be able to save $100,000.
Once you start the process of saving and you see your accounts physically growing, use that as motivation to start saving more.
When we decided it was time to buy our first house, we knew we needed to save $20,000 in one year for a down payment. Not only did we have to change our way of spending but our way of thinking as well.
How To Change Your Money Mindset
You might be wondering, how do I change my mindset over night?
Here are a few things I recommend trying to change your mindset about money so you can make better choices.
– Get your family on board
– Set goals
– Set a vision board: Where would you like to see yourself in 5 years
– Live on less so you can save more
These are just a few minor things you can change that will help you start to look at money in a positive way.
Make Saving Money Fun
In order to save a large amount of money, you have to come up with ways to make saving fun! If we wouldn’t have found ways to make saving fun, we never would have met our goal.
We made a tracker so we could visually see how our accounts grew. The more we saw it grow the more excited we got and the more excited we got the more new ways we’d figure out how to save even more.
Believe me, saving money is contagious!
However, it’s not going to grow overnight and that might be a little discouraging. You have to be prepared for the reality, that it’s going to take time.
Consumerism is at an all-time high and we are programmed to buy, buy, buy.
We know, we used to be that way too!
Want to know how we broke this never-ending cycle? We don’t spend what we don’t have. Heck, we don’t spend what we do have.
We make a conscious effort to spend far less than what we make every month.
If you want to save 100,000 dollars you’re going to have to learn to live on less.
Related articles I recommend:
How Much Should I Save Per Month (Goals)
This is a really important step, no matter how much money you want to save. When we began our quest to save a
At the time it seemed crazy and we definitely weren’t even sure if it was possible for us to save that much but, we were determined.
So what is your goal?
Do you want to save $100,000? Are you looking to save a lump sum of money, do you want to pay cash for a car, or are you looking to save for a down payment on a house?
Whatever it is, write that goal down and put it somewhere you will see it every single day.
Setting a goal is going to lead you to success.
I remember exactly where I was sitting when I made the goal to save six figures in five years. At the time we lived in Washington State, I was going to college, and we were newlyweds living off David’s enlisted military salary.
When I made this goal, I’m pretty sure David laughed in my face but hey look who’s laughing now.
YOUR goal, YOUR why, is what’s going to be the driving factor behind what leads you to success.
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How long will it take to save $100,000?
This depends on how much you plan to save each month. The more you put away each month the quicker you will be able to save.
When we first started saving we were newly married living off less then $30,000. Our income was very small.
We weren’t able to put away much each month but what we did put away were work bonuses and tax money.
Keep reading to see how you can save a lot of money in just a few short years, like we did.
Update: It has been 8 years since we started saving our first 100k. We have gone from being able to save a couple pennies a month to thousands of dollars some months and we hope to pay off our mortgage in the next 2 years before we turn 33.
Saving large amounts of money isn’t going to happen over night, its been a long journey for us, but its been completely worth it.
Create A Budget That Works For You
I’m sure by now you are probably thinking, “how the hell am I suppose to save one hundred thousand dollars on my mediocre salary.”
We thought the same thing. Did I mention that we started our 5-year journey to save $100,000 at just 22 years old? We had no idea what we were doing nor did we make very much money at the time.
Budgeting is the most crucial step in your money-saving journey. Budgeting allows you to see exactly where your money is going each and every month.
Before budgeting, we would let our money come and go as it pleased yet at the end of the day we never had anything to show for it.
When we started our trek to six figures, we decided to stick to a tight budget.
I don’t think we ate out a single time in 2016, because we didn’t have room for it in the budget.
I know what you are thinking, this might now be realistic but.. Looking back let me tell you it was worth it.
You also don’t have to get as uber intense as we were with our budget. We had big goals.
Budgeting became a game between my husband and
Looking back we basically made saving $100,000 into a game. If you don’t make saving a large amount of money fun, there is a high chance it’s going to be miserable.
Helpful article: 71 Budget Categories You Might Be Forgetting From Your Budget
The budgeting method we used to save 100,000 dollars!
We used the cash envelope method and paid for just about everything in cash! This has been something we’ve been doing for years. We continue to budget this way even after we saved our first $100,000.
Yes, this means we don’t spend a dollar we don’t have. And we keep track of every last penny in our budget binder.
If you want to check out the budget binder we used to save $100,000 you can check it out here.
If you don’t know what a cash envelope system is, make sure you check out our beginners guide to the cash envelope system. It’s a pretty detailed guide that can help you get started using this system.
I also highly recommend checking out Dave Ramsey’s Total Money Makeover. This book changed our mentality and kick-started our journey to financial freedom. It has a ton of really great financial information, including the envelope system, and it will motivate anyone to save money.
As you begin your budget and looking for ways to cut expenses, get creative. I compiled a list of creative ways to save money in hopes that it makes this step a little easier for you.
Pay Off Your Debt
I’ll keep this one short and sweet.
If you have debt, pay it off as fast as you can. It makes it really hard to save money if you have a mountain of debt to pay off.
With your budget in place, you should be able to clearly see how much debt you have and start focusing on paying it off. Pay off the smallest debts first and then use that money to pay off the next debt.
The Debt Snowball Tracker and several other spreadsheets in this tool will really help you track your debt.
Continue this trend until all your debt is gone.
Save, Save, Save And Then Save More
Now the fun part, start saving!! I recommend paying off your debt before you start saving. However, my student loans were not completely paid off before we started saving our first $100,000.
Do what’s right for your household!
Pay your bills each pay period and then put excess money into your savings account before you have a chance to spend it.
By doing this you won’t be tempted to use it to buy something you didn’t need. If you can set up to have your money from your paycheck direct deposited to your savings account, that’s even better.
If you are lucky enough to have a job that pays a yearly bonus or even gives out spot bonuses, save that money. Do not have a plan to spend it before you even get it.
If you’ve cut everything you can possible cut from your spending and you still can’t save enough every month. Its time to get a side hustle!
Our side hustle made us $22,000 last month. Yes, you heard that right.
Our Favorite Ways To Save & Make Extra Cash
- Cut out cable, for good. This is one of the easiest ways to save money each month. If you need tv there are many other great options that still allow you to watch your favorite shows. Our favorite is Hulu. We pay $8 dollars a month to watch our favorite T.V. shows. Use our link to start your
30 dayfree trial.
- Start living below your means. Every financially independent person will tell you this is the key to staying out of debt and saving money.
- If you are looking for
a cheapphone service, check out Republic Wireless. I have only heard great things about their 4G service. They have Unlimited Talk & Text plans starting at $15 a month and you don’t have to sign a contract!
- Always shop with a website like Rakuten when you’re shopping online. They give you cashback when you shop your favorite stores such as Target, Kohls, Amazon, Walmart, Nike and many more. When you sign up with our link you get a free $10 gift card with your first purchase of $25 or more!
- Join Swagbucks! Swagbucks is awesome and if you haven’t tried it out you have to! It’s free to sign up. You can take surveys, watch videos and shop online to earn Swagbucks. Cash in your Swagbucks for gift cards to some of your favorite stores. So next time you are watching TV, jump on Swagbucks and earn yourself some gift cards.
- Check out our post 40 Ways to Make Extra Money this includes easy ways for you to start making money this week.
Related articles: Make Free Money Today With These Companies: Just By Using The Internet
Bonus Tip: Investing
With all that money you’re going to be saving, it’s time to make your money work for you.
Investing has been a big part of our strategy to hit the $100,000 goal we set and it should be part of yours too.
In fact, in the month of January, we made more money off of our retirement accounts interest than David made all month at his 9-5 job!
Whether you choose to use a money market account, mutual funds, or IRA’s, I recommend finding somewhere to put your money that will get a bigger return rate than your standard savings account.
Leaving your money in a savings account is essentially wasting valuable time and money that you could be investing.
If you want to start investing in stocks, WeBull provides an excellent platform for trading stock. With no trading fees, it doesn’t get much better than that. Check out Webull for all your stock market needs!
Compounding interest is your new best friend and the sooner you start the better.
We chose to invest most of our money in mutual funds. This is a great option for anyone wanting to save money over a long period of time. You have to be willing to let your money sit for at the very
We have our money divided into 3 different funds and recommend the same:
- Two high-risk funds. These funds are mostly focused on the United States. We figure since we are young, we can be a little more aggressive with our accounts. Once we get closer to retirement we will dial them back to be a little more conservative.
- A foreign-based fund. You always want to make sure that you diversify your portfolio.
This strategy has worked for us but does come with its share of ups and downs. We have seen the accounts swing from really far in the red to even higher into the green. It’s kind of an emotional roller coaster but we held out and are rolling in the returns now.
Whatever method you choose for investing I suggest doing your research beforehand. There are so many good books to choose from out there, pick a couple and educate yourself before you start investing. Most banks also have personal advisors, I recommend sitting down with one and picking their brain first.
I wanted to share our story with you hoping that it will inspire you to build your savings. Whether it’s for a rainy day, retirement or anywhere in between, it’s never too late to get serious about saving money.
If you have your own unique story make sure to share it with us! Any goal reached, no matter the size is a victory in our book.
If you enjoyed our post make sure you save it for later! And don’t forget to check us out on Pinterest!
Here are some other articles I recommend that may help you save money, so you can save 100k too!
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Our Favorite Resources
Ibotta: This is by far my favorite app to get cashback when I shop in stores or online. Whether I’m buying groceries or going to Target for everyday essentials, Ibotta has great deals that you need to take advantage of! The other day I got $1.20 cashback from a $3.60 box of granola bars. When you signup with our link you’ll get a $10 welcome bonus.
Credit Sesame: Have you checked your credit score lately? I recommend checking your credit score at least once per year. My choice for getting a quick and FREE credit score check is Credit Sesame. They require a minimal amount of information to get your credit score and they have a bunch of other useful finance tools at your disposal.
Rakuten (formally known as Ebates): If you do any shopping online you need to check out Rakuten. Much like Ibotta, Rakuten will give you cashback when you shop online at your favorite stores. They partner with over 150 stores so you’ll be sure to find a store you love. Cashback amounts range from 1% up to 15% or more. When you sign up using our link you’ll get a $10 welcome bonus on your first purchase of $25 or more.