Invest
Investing is a very lucrative way to save money, especially if it is a long time goal. This is because when you invest you put in money you will not need for the next 3-5 years. If you are thinking of investing, you must understand the stock market and the stock you are investing in. Do not just go for the most popular. Billionaire Warren Buffet once said to invest in something you use every day, this way it is like investing in a product you trust and cannot live without.
Invest in yourself
Investing in yourself might seem like a waste of money, but like every investment in the long run you will be grateful you did it. How to invest in yourself, can be done by learning a skill which could be cooking, hair styling, photography, baking, painting, woodwork, makeup, etc. Acquisition of These skills will give you a leg up in any economy, for instance, if you learn baking you could start by baking cakes and other pastries for friends, then events, and before you know it you are opening your open bakery and teaching these skills to other people. Self-investments are the best kind of investment.
50-30-20 formula
This simple formula is used by people to save money know what percentage of their salary goes to certain things. The 50-30-20 helps allocate your total earnings with 50% of your earnings going to your needs, this may include rent, gas, and clothing.30% allocated to fun and luxury, and 20% going to savings, this should be put in retirement funds for future investment.
Run away from dept
Debt is one of the largest consumers of money from student loan debts to medical bill debt and credit card debts. It’s like a never-ending wormhole of debts that just keeps sinking with the tremendous interest rate. If you plan on saving 100k by the time your 30, you better swear off all debts. After getting rid of any debt, then you can start saving.
Visualize your goals
This may be a more difficult step than you think, for some people you need to create a list of where you want to be financially by the time you turn 30. It could be done through a Google spreadsheet, Microsoft Excel spreadsheet, or even a notebook. Make sure you choose the method you want to do this on a system that you can always refer back to.
Mapping out your goals is the first step, then you can sort your wants from needs, expenses, and non-negotiable and in total track your progress.
Lifestyle change
Saving money may include some lifestyle changes, this could be complete changes or just substitutions. Get rid of unnecessary expenses which may be incurring heavily on your account. Substitute eating out for cooking your meals, cut down on those 3 weeks vacations twice a year, and think of something in state and with little implications on your bank account. You do not always have to spend money to have the most fun sometimes a picnic at the park with friends could be more fulfilling. Cut down on all those streaming service memberships.
Reading more and gaining more information
In other to learn about saving 100k it is best to acquire as much knowledge as possible from people that have successfully done so. Thankfully the internet helps with this, reading books and saving could give you more insights on how things should be done for a more effective saving plan. If you are not a fan of reading you could opt for audiobooks, also not a fan there are thousands of podcasts that talk about saving before a certain age.
Side hustle
The truth about saving is in other to save more money you have to make money, the two go hand in hand. Adopting a few side hustles may be a good way to increase your earnings, therefore save more. Side hustles do not necessarily have to be skilled or part-time jobs, you can bag a few side hustles with the minimalist of skills. If you are good at basically anything like writing or reading, Fiverr and Upwork are apps that help job searchers reach people looking for work. You could find freelance jobs like require transcription, proofreading, writing, drawing, editing, etc.
The Bottom Line
When adopting these simple formula you will end up save money more than 100k in the bank, just stay level-headed, follow your game plan, and be committed to your goal.
