I recently celebrated two milestones: turning 25 and realizing I’d saved enough to make a down payment on a 4-bedroom house if I wanted.
While turning 25 was unavoidable, the amount of money I’ve saved is very much thanks to the intentional habits and decisions I’ve made. Ever since I got my first job at 16, I’ve been conscious that keeping my eye on my financial goals and actively working towards them is the only way to achieve them.
I began saving as soon as I finished my Masters when I was 22. In three years, I’ve saved $60,000. Here are the six factors that helped me achieve that sum by age 25.
I recently celebrated two milestones: turning 25 and realizing I’d saved enough to make a down payment on a 4-bedroom house if I wanted.
While turning 25 was unavoidable, the amount of money I’ve saved is very much thanks to the intentional habits and decisions I’ve made. Ever since I got my first job at 16, I’ve been conscious that keeping my eye on my financial goals and actively working towards them is the only way to achieve them.
I began saving as soon as I finished my Masters when I was 22. In three years, I’ve saved $60,000. Here are the six factors that helped me achieve that sum by age 25.
1. I Put My Entire Day Job Salary in My Savings
This one should not be a surprise. While I make a very comfortable salary on my day job, it’s not nearly enough to help me save $60,000 in 3 years. Instead, I effectively have two jobs — my first in Customer Success, and my second blogging, which earns me between $1,000 to $3,000 per month.
Not content with that, I also labored for over a year to make a profitable YouTube channel, a Patreon, and a coaching business. These streams contribute an additional $500+ per month, a number that is only increasing. It means every other week, when I get my day job salary, it can go straight into my savings account. My side hustles account for all my expenditures, with enough left over to boost my monthly savings rate.
This approach won’t work for everyone. My day job is remote, which means I don’t lose time to a commute. It’s a job I love, which means I don’t come home drained and mentally exhausted. Instead, it invigorates me while giving me the financial security to get creative with my side hobbies.
Finally, I absolutely love content creation, which lets me happily spend all my free time on it. While my friends and family members might be relaxing by watching TV, browsing social media, or pursuing any other hobby, I’m doing the same — but my hobbies happen to be very lucrative for me.
If I didn’t love making videos, writing articles, and helping others do the same, none of it would be a viable income source. This only works if you love what you do so much that you can and will spend most of your leisure time working on it.
This one should not be a surprise. While I make a very comfortable salary on my day job, it’s not nearly enough to help me save $60,000 in 3 years. Instead, I effectively have two jobs — my first in Customer Success, and my second blogging, which earns me between $1,000 to $3,000 per month.
Not content with that, I also labored for over a year to make a profitable YouTube channel, a Patreon, and a coaching business. These streams contribute an additional $500+ per month, a number that is only increasing. It means every other week, when I get my day job salary, it can go straight into my savings account. My side hustles account for all my expenditures, with enough left over to boost my monthly savings rate.
This approach won’t work for everyone. My day job is remote, which means I don’t lose time to a commute. It’s a job I love, which means I don’t come home drained and mentally exhausted. Instead, it invigorates me while giving me the financial security to get creative with my side hobbies.
Finally, I absolutely love content creation, which lets me happily spend all my free time on it. While my friends and family members might be relaxing by watching TV, browsing social media, or pursuing any other hobby, I’m doing the same — but my hobbies happen to be very lucrative for me.
If I didn’t love making videos, writing articles, and helping others do the same, none of it would be a viable income source. This only works if you love what you do so much that you can and will spend most of your leisure time working on it.
2. I Developed a Passion for My Budget Spreadsheet
When coronavirus hit and all my expenditures dropped, I’ll admit it — that extra money started burning a hole in my pocket. That first month, I spent just as much money as I normally would — but all on clothing, because it was my only fun activity left.
As soon as I filled in my monthly spreadsheet with my observed versus expected income and expenditure, I saw that despite seeing a huge drop across a ton of different categories, I’d made up for it by spending an equally vast amount on an impromptu summer wardrobe.
If you wanted to lose weight, it helps if you track your calories. If you want to save money, do the same but with your dollars. Log every penny coming in and out. Not only will it keep you accountable, but it will also stop you from continuing to spend frivolously like I did that first month.
When I entered my $110 Pure Barre membership I’d stopped going to, I immediately canceled it. When I input my $15 Xbox Game Pass subscription, I reconsidered whether it was worth the payment. And nothing beats the satisfaction of totting up my paycheck in the income column.
When coronavirus hit and all my expenditures dropped, I’ll admit it — that extra money started burning a hole in my pocket. That first month, I spent just as much money as I normally would — but all on clothing, because it was my only fun activity left.
As soon as I filled in my monthly spreadsheet with my observed versus expected income and expenditure, I saw that despite seeing a huge drop across a ton of different categories, I’d made up for it by spending an equally vast amount on an impromptu summer wardrobe.
If you wanted to lose weight, it helps if you track your calories. If you want to save money, do the same but with your dollars. Log every penny coming in and out. Not only will it keep you accountable, but it will also stop you from continuing to spend frivolously like I did that first month.
When I entered my $110 Pure Barre membership I’d stopped going to, I immediately canceled it. When I input my $15 Xbox Game Pass subscription, I reconsidered whether it was worth the payment. And nothing beats the satisfaction of totting up my paycheck in the
income column.3. I Decided to Move Back Home
When I got a new job that allowed me to work from home, I made the difficult choice to move back home with my parents for a year.
At first, honestly, I was ashamed of this. It feels embarrassing to admit that you’re back home for the first time since you turned 18. But the more I looked around (and the more I saw my bank account grow), the happier I was with my decision.
I realized the United States is very peculiar in its approach towards 18-year old kids. Here, college is seen as the big “adult” moment. Universities court applicants with lavish dorm rooms, the full campus experience, inviting teenagers to something that promises to be a bubble from the outside world.
By contrast, when I went to school in England, I learned most kids live at home until after they graduate from college, which is normally the local one. There’s no special campus bubble — students are just there to get an education. There’s much less hype about specific universities and much more focus on integrating with the real world.
The result is people graduate college with no or low student debt, strong relationships with their families, and aren’t forced to pay through the nose for “experiences” that don’t actually contribute to their education.
Moving back home made sense. I get along really well with my family, my job allowed me to work remotely, and most importantly, I could save buckets of money.
When I got a new job that allowed me to work from home, I made the difficult choice to move back home with my parents for a year.
At first, honestly, I was ashamed of this. It feels embarrassing to admit that you’re back home for the first time since you turned 18. But the more I looked around (and the more I saw my bank account grow), the happier I was with my decision.
I realized the United States is very peculiar in its approach towards 18-year old kids. Here, college is seen as the big “adult” moment. Universities court applicants with lavish dorm rooms, the full campus experience, inviting teenagers to something that promises to be a bubble from the outside world.
By contrast, when I went to school in England, I learned most kids live at home until after they graduate from college, which is normally the local one. There’s no special campus bubble — students are just there to get an education. There’s much less hype about specific universities and much more focus on integrating with the real world.
The result is people graduate college with no or low student debt, strong relationships with their families, and aren’t forced to pay through the nose for “experiences” that don’t actually contribute to their education.
Moving back home made sense. I get along really well with my family, my job allowed me to work remotely, and most importantly, I could save buckets of money.
4. When My Income Increased, I Didn’t Spend More
Nobody ever told me this when I started out in my career, but when you change jobs, it usually comes with a salary increase.
I was given notice that I was about to be laid off 2 months into my first job out of college. I took the time before my last day to find a better job and bargained hard for a higher starting salary. My annual salary increased by 12%. Then, when I left my second job to move to the States, I researched typical salaries for the job I wanted, so when I got a job offer, my salary increased this time by 84%. And I know if I were to look again, I could increase my salary by another 10% or more.
Changing jobs— or even just looking for a new job — always comes at a point when you have more experience and more bargaining power. This is because companies will pay you more to come to them instead of staying where you are now. Most employers know that in order to get potential new hires to make a change and leave their current job they need to be financially motivated. Despite most people saying money isn’t that important, we all know it is. To convince new potential hires to jump ship, companies have to make it worth their while.
Now here comes the kicker: if you’re living happily and comfortably on your initial salary when you get a pay raise, don’t spend it. Instead, sink it all into your savings. You won’t notice a drop in your quality of life, but your nest egg will start growing faster than ever.
Nobody ever told me this when I started out in my career, but when you change jobs, it usually comes with a salary increase.
I was given notice that I was about to be laid off 2 months into my first job out of college. I took the time before my last day to find a better job and bargained hard for a higher starting salary. My annual salary increased by 12%. Then, when I left my second job to move to the States, I researched typical salaries for the job I wanted, so when I got a job offer, my salary increased this time by 84%. And I know if I were to look again, I could increase my salary by another 10% or more.
Changing jobs— or even just looking for a new job — always comes at a point when you have more experience and more bargaining power. This is because companies will pay you more to come to them instead of staying where you are now. Most employers know that in order to get potential new hires to make a change and leave their current job they need to be financially motivated. Despite most people saying money isn’t that important, we all know it is. To convince new potential hires to jump ship, companies have to make it worth their while.
Now here comes the kicker: if you’re living happily and comfortably on your initial salary when you get a pay raise, don’t spend it. Instead, sink it all into your savings. You won’t notice a drop in your quality of life, but your nest egg will start growing faster than ever.
5. I Sacrificed My Relationship For My Career
This was always supposed to be a temporary sacrifice, but it was a sacrifice nonetheless. I interviewed for a US-based job— nearly doubling my salary, but meaning I would have to leave my UK partner behind.
I knew it would be difficult to be in a long-distance relationship for over a year while I waited for him to get his visa. Of course, I couldn’t have known at the time that there would also be a pandemic stopping me from even visiting him on the rare occasions I’d originally counted on.
I could have stayed content in the UK with my partner and a mediocre salary. Instead, I trusted that our relationship would be able to survive this massive leap. As a result, I reaped the financial rewards. It hasn’t been easy. And honestly, I don’t know if it’s been worth it. But prioritizing my career over my relationship has certainly been a factor in saving $60k.
This was always supposed to be a temporary sacrifice, but it was a sacrifice nonetheless. I interviewed for a US-based job— nearly doubling my salary, but meaning I would have to leave my UK partner behind.
I knew it would be difficult to be in a long-distance relationship for over a year while I waited for him to get his visa. Of course, I couldn’t have known at the time that there would also be a pandemic stopping me from even visiting him on the rare occasions I’d originally counted on.
I could have stayed content in the UK with my partner and a mediocre salary. Instead, I trusted that our relationship would be able to survive this massive leap. As a result, I reaped the financial rewards. It hasn’t been easy. And honestly, I don’t know if it’s been worth it. But prioritizing my career over my relationship has certainly been a factor in saving $60k.
6. My Parents Taught Me About Finances
While the five factors above contributed to being able to save such a huge amount of money in a short span of time, I can’t discount the massive advantages I have simply due to how I was raised.
My dad works in the finance industry and constantly advised me on how to navigate my 401k to my best advantage. He counseled me on how much, when, and where to invest my savings (if you’re wondering where, it was the S&P 500 index fund). He gave me the blueprints for the spreadsheet I rely on so much.
But he gave me more than just advice — both he and my mom imparted on me the “long term view.”
I was raised to bring my own lunch whenever I could, to buy secondhand instead of new, to cook at home instead of eating out, to do bodyweight workouts instead of gym memberships, and to take cheap long haul flights instead of buying direct.
None of those individual habits contribute significantly to my savings. But once you look at things through a long term lens, everything changes.
If I don’t buy a $5 lunch every day at work, that’s $100 per month, which is $1,200 a year. I save another $1,200 canceling my gym membership. If I eat out only once a month instead of 4 times a month, that’s another $1–2K per year. Cheap flights save me $500 each time if I’m smart about it. Every choice I make adds up — or subtracts.
More than each habit, it’s this overarching perspective that has really helped me when it comes to saving money.
While the five factors above contributed to being able to save such a huge amount of money in a short span of time, I can’t discount the massive advantages I have simply due to how I was raised.
My dad works in the finance industry and constantly advised me on how to navigate my 401k to my best advantage. He counseled me on how much, when, and where to invest my savings (if you’re wondering where, it was the S&P 500 index fund). He gave me the blueprints for the spreadsheet I rely on so much.
But he gave me more than just advice — both he and my mom imparted on me the “long term view.”
I was raised to bring my own lunch whenever I could, to buy secondhand instead of new, to cook at home instead of eating out, to do bodyweight workouts instead of gym memberships, and to take cheap long haul flights instead of buying direct.
None of those individual habits contribute significantly to my savings. But once you look at things through a long term lens, everything changes.
If I don’t buy a $5 lunch every day at work, that’s $100 per month, which is $1,200 a year. I save another $1,200 canceling my gym membership. If I eat out only once a month instead of 4 times a month, that’s another $1–2K per year. Cheap flights save me $500 each time if I’m smart about it. Every choice I make adds up — or subtracts.
More than each habit, it’s this overarching perspective that has really helped me when it comes to saving money.
ByDecember 2021, I’ll Have Saved At Least $100k.
If you look at my life through one lens, you might consider me a failure. I was laid off two months into my first job out of college. I’m back home with my parents. I left behind an amazing job at a fun startup and a wonderful partner whom I haven’t seen in 7 months. I never go out, I only wear second-hand clothes, and my hobby is typing on the internet.
On the other, I’ve reached financial stability and success that I couldn’t have imagined when I began saving three years ago.
With my $60,000 sitting in my savings account, I can easily look ahead to the near future when I can dedicate myself to being a full-time content creator. Even now, just knowing I have the money and the habits I need when I do decide to strike out on my own gives me a huge amount of peace and security.
When I set out to save money three years ago, I didn’t intend to become a content creator. But as I’ve squirreled away every penny, it’s become clear to me that no matter which one of the entrepreneurship ventures I choose, I have the financial stability to go all-in on it.
If you look at my life through one lens, you might consider me a failure. I was laid off two months into my first job out of college. I’m back home with my parents. I left behind an amazing job at a fun startup and a wonderful partner whom I haven’t seen in 7 months. I never go out, I only wear second-hand clothes, and my hobby is typing on the internet.
On the other, I’ve reached financial stability and success that I couldn’t have imagined when I began saving three years ago.
With my $60,000 sitting in my savings account, I can easily look ahead to the near future when I can dedicate myself to being a full-time content creator. Even now, just knowing I have the money and the habits I need when I do decide to strike out on my own gives me a huge amount of peace and security.
When I set out to save money three years ago, I didn’t intend to become a content creator. But as I’ve squirreled away every penny, it’s become clear to me that no matter which one of the entrepreneurship ventures I choose, I have the financial stability to go all-in on it.