How Can I Save 100k in 3 Years?

Table of Contents

Invest in your 401(k)

Employer matches are one of the biggest benefits of a 401(k). If your company offers a 401(k) match, contribute at least enough to get the full employer match. For example, if your company matches 50 cents for every dollar you contribute up to 6% of your salary, you’ll want to contribute 6% of your salary to get the full employer match.

If you don’t have access to a 401(k), consider opening an IRA. You can deduct up to $5,500 from your taxes each year ($6,500 if you’re 50 or older), which can help reduce the amount of taxes you owe.

Save automatically: One easy way to make sure you’re saving regularly is to have money automatically withdrawn from your paycheck and deposited into a savings account or retirement account. This way, you don’t have to think about it – the money will just be there when you need it.

Pay yourself first: When you get paid, put some money into savings before you start spending. This will help make sure that savings is always a priority. You can automate this process by having a certain amount transferred from your checking account into savings each month.

Keep your expenses very, very low

If your goal is to save $100,000 in three years, then you will need to keep your expenses very low. One of the best ways to do this is to track your spending so that you are aware of where every dollar goes. Once you have a good understanding of your spending patterns, you can work on making changes to reduce your overall costs.

One area where people often spend too much money is on housing. If you can live in a smaller home or apartment, or even get roommates to help split the cost, this can save you a lot of money each month. Transportation costs are another area where it is easy to cut back – consider carpooling, walking or biking whenever possible instead of driving everywhere. And finally, be mindful of how much you spend on food and entertainment – cooking at home and finding free or low-cost activities can help stretch your budget further.

Save 40% to 50% of your earnings

How much should you save each month to reach your goal?

Saving 40% to 50% of your earnings is a great way to save money quickly. To reach your goal of saving $100,000 in three years, you would need to save $3,333 per month. This might seem like a lot, but it is possible to do if you are diligent about your savings plan. Here are a few tips on how you can make this happen:

1. Make saving automatic: One of the best ways to make sure you hit your savings goals is to set up an automatic transfer from your paycheck into a savings account. This way, the money is automatically deposited and you don’t have to think about it. You can also arrange for a portion of any bonuses or other windfalls to be deposited straight into savings.

2. Live below your means: In order to have extra money available for saving, it’s important that you live below your means. This doesn’t mean that you have to deprive yourself – just be mindful of where your money goes and make sure that non-essential spending doesn’t eat up all of your income. Track where you spend for a couple of months so that you can identify areas where you can cut back if necessary.

3 Invest in yourself: One of the best investments you can make is in yourself – specifically, in increasing your income potential through education or training courses. The more money you earn, the easier it will be to reach goals like saving $100K in 3 years time! Not only that, but investing in yourself will pay off in the long run even if taking some time out from working now means lower earnings temporarily..

Start a side hustle

If you’re looking to save up 100 k in three years, a side hustle may be the way to go. With a little creativity and some extra effort, you can earn money outside of your full-time job – and potentially boost your savings significantly.

There are endless opportunities for side hustles these days. You can start a blog and sell advertising or become an affiliate for other businesses. Or, if you have a knack for crafting, you could start selling handmade goods online or at local markets. If you’re handy with technology, you could offer web or app development services on a freelance basis. The options are really only limited by your imagination – and willingness to put in the work.

Of course, starting a side hustle takes some initial investment of time and energy. But if you’re dedicated to reaching your 100 k savings goal within three years, it’s definitely worth it. Not only will you be bringing in extra money each month (which can be funneled straight into savings), but you’ll also gain valuable skills and experience that could help further your career down the road.

So what are you waiting for? If saving up 100 k is your goal, consider starting a side hustle today!

Don’t get caught up in comparison

I’m often asked how I was able to save $100,000 in just three years. And while there are a few things I did that helped me get there, the biggest factor was simply not getting caught up in comparison.

You see, when we compare ourselves to others, we’re usually comparing our worst to their best. We compare our bank account balances, houses, cars and clothes without taking into account all of the other factors that play into those numbers. And as a result, we often feel inadequate and like we’ll never be able to reach our financial goals.

But here’s the thing: you can’t compare your financial situation to someone else’s because you don’t know their whole story. Maybe they make more money than you do or maybe they have less debt. Maybe they’ve been saving for years or maybe they got lucky and inherited a large sum of money. The point is, you don’t know what their financial picture looks like behind the scenes so it’s unfair (and unproductive) to compare yourself to them.

Instead of comparing yourself to others, focus on your own financial situation and what you can do to improve it. Set realistic goals for yourself and work towards them each day/week/month/year. And most importantly, don’t beat yourself up if you have an off month or two (we all do!). Just pick yourself up and keep moving forward towards your goals!