This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
The first 100k is the hardest, but the most critical
Two thousand eighty-three dollars.
This is how much you would need to save for 48 months (4 years) to accumulate $100,000 in savings. Some people save this dollar amount every month, but others gradually increase the amount they save monthly, with income increasing and expenditure decreasing.
If you want to save at least $100,000, you need to increase your income. You can save quite a bit of money in 4 years on a low salary, but it’s harder to save ~$2,083.00/month when your income is at 24k-30k/year. If your income is ~$2,000/month, your whole paycheck would have to disappear to meet this goal.
If you currently cannot save this amount, get clear and creative to determine how you will increase your income to meet this monthly savings goal.
A Few Ideas:
1. Switch professions/careers
2. Ask for a raise with legitimate reasoning.
3. Get a second job.
4. Start a business.
5. Decrease your expenditures/spending
Lastly, what’s your reason? Why do you want to save $100,000?
Have a worthy reason for standing behind this goal that will motivate you when you get off track and feel like giving up. Your reason is what will get you from zero in savings (point A) to $100,000 in savings (point Z).
2. Decrease Your Expenditures
The easiest way to increase your monthly income is to decrease your monthly expenditures.
A Few Questions To Ask Yourself:
1. What am I spending my money on?
2. Am I paying more than I should for insurance (all types)?
3. Am I eating out frequently?
4. Is my streaming budget higher than it needs to be?
5. Ultimately, the big question is: Where the f*ck is my money going?
Most people don’t know the answer to this last question, which is why most people are broke and end up staying broke – living paycheck to paycheck.
When you have a budget, you have complete clarity on where your money is going. You can also regularly make adjustments based on how the month went. When you don’t have transparency in your finances, you tend to regress and lose control of your finances.
If you want to save $2,083.00/month, you will need to know where your money is going so you can shift your money to go in the right direction to meet your aggressive savings goal of $100,000.00 in 4 years or less.
3. Multiple Income Sources
Do you have more than one source of income?
In this day and age, many people have more than one source of income. However, many people still rely on one source of income, which is a dangerous game. Having one source of income is like betting all your money on one sick horse.
Always have more than one source of income.
Not only will various sources of income increase your options, opportunities, savings capabilities, and net worth, but establishing multiple sources of consistent income will enhance your well-being and peace of mind. It is a wise practice to get your income from multiple ventures.
The best way to add new income sources is to look at your skills, hobbies, and passions; these are the first things readily available to you for monetization.
4. Utilize Available Resources
Do you work for a company? Were you/ are you in the military? Are scholarships, grants, and funding available to you and your situation? Are there financial opportunities to take advantage of? Yes! Do some research and find out. The last thing you want is to pass up free money to help you reach your savings goal of $100,000.00.
Free Money Many People Are Unaware Of:
1. VA monthly disability/benefit check for all former military
2. 401K company match (this is a critical one)
3. Grants for everything and anything
4. Tax advantages
Take advantage of free money opportunities quickly. The more you can save here and there and increase your income here and there, the more it starts to compound and make a significant difference to your financial health.
5. Invest
Invest early. Invest now. Invest ASAP. The sooner you invest, the sooner your pockets and bank accounts will thank you.
When you save $100,000.00, you need to put it to work (immediately) to earn interest off your savings. You don’t want to let your money sit still without compounding into more money. Make your money work on your behalf – while you are awake and sleep – through the magical art of investing.
Don’t know where to start? Start easy with robot investing. Or you can chat with a reputable financial advisor (do your research) to help you make sound and wise financial decisions. Depending on your age, savings goals, and other pertinent factors, a robot advisor or human advisor can help you maximize your investment opportunities.
Once you start investing $2,083.00/month, you will notice that you start earning money off your savings, and you will have to save less over time due to the compound interest and dividends you earn on your investments.
Warren Buffet recommends the best thing you can do with your investments: leave them alone, don’t touch them, and engage in long-term (or forever) holding.
6. Consistency & Discipline
So far, you have learned five things to help you reach your savings goal. The answer is clear and doable.
You Know What To Do Now:
1. Increase Your Income
2. Decrease Your Expenditures
3. Create Multiple Income Sources
4. Utilize Resources Available to You
5. Invest Your Savings
If you desire to reach your 100k savings goal, the final thing you must remember is to stay consistent and implement discipline into your daily financial habits. These are the final keys to ensuring your success with your savings goal.
7. 4 Years Or Less
If you want to save $100,000.00 in less than four years, you must save more money each month. But as you continue to invest, you will notice that you are on track to reach your goal before the 4-year mark, which is amply helpful.
Once you start decreasing your expenditures, increasing your income, increasing your income sources, investing, utilizing the resources and opportunities available to you, etc., you will be on track to reach your goal in less than four years.
* I am glad for you because you have the power to save not only $100,000 but MORE. Your financial future is up to you. Get creative and take action right now!
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.