So, you think you want to save 50% of your income? You must have some pretty big dreams! I’d love to hear about them because getting excited about your goals is the first step to achieving them.
Let me tell you, I’ve been there. When I was starting out, I managed to save between 70-80% of my income every month. Was I crazy? Probably. Did it work? Absolutely!
I’m not going to say it was easy, because it wasn’t, but with the right mindset and motivation, you can get into the groove and do it too.
Saving 50% of your income is a great short-term goal, and if you can maintain it longer without going bananas, anything is possible! It will fast-track you to your financial dreams. Here are some tips that worked for me—nothing earth-shattering, but they did the job.
IN THIS ARTICLE
How to Save 50% of Your Income: 10 Practical and Motivational Tips
1. Have a Budget
Having a budget is like having a map for your money. It allows you to see and decide what you want to do with your money. Plus, it’s way less stressful than getting lost financially!
2. Track Your Spending (All of It!)
Grab those receipts, check your accounts, and go through your credit card statements. You need a system to keep track of every penny. Trust me, you’ll be shocked at how those small purchases add up! Click here for a list of 112 things you could be wasting your hard earned money on.
Download my FREE EXCEL BUDGET.
3. Lower Your Highest Expenses
Look at your budget and find out what can be cheaper or what you can ditch altogether.
Your highest expense is often your living space. If you’re willing to sacrifice space for a few years, you’d be amazed how much you can save. I lived in a one room apartment for a year at $250/month, then upgraded to another small apartment for $500/month, and I ALWAYS had a roommate. Yes, even in the one room apartment. I’m not going to lie, I kinda hated my life for a while, but I knew these choices would hopefully be lifechanging down the road.
Reassess your expenses regularly and find ways to save everywhere. For example, get quotes on things like insurance—there’s always cheaper options out there.
For more ideas, check out:
- How to Save Money on Rent: 13 Proven Tips From Your Landlord (Game changer!)
- HOW TO SAVE: THE NO-SPEND CHALLENGE GUIDE
4. Increase Your Income
If you’re just starting out and your bank account is looking a bit sad, now’s the time to hustle. Get a side gig to give your bank account a boost. The sooner you start building your nest egg, the sooner you can sit back and let your money do the work.
I vowed not to spend a dime on myself until my money was making money for me. Now, in my 30s, I’m finally enjoying life more, and not on my own dime.
5. Set Money Goals
Once you start saving and see progress, you’ll be hooked. It’s simply another habit. Set some goals—like saving $5,000 for a trip or $30,000 for a new car. Or go even bigger and start saving for a house.
We rushed to pay our house off in 5 years and then sold it to build apartments.
Dream big and set your money goals!
6. Make It a Habit and Be Consistent
Make updating your budget a regular thing—daily, weekly, or monthly. Make saving a habit. Keep reassessing for cheaper living options. Keep setting goals and get excited about achieving them!
7. Don’t Be Afraid of Change
Change can be scary (I get it, I have anxiety just thinking about change sometimes). But once you’re in the middle of it, it’s not so bad. And remember, there’s always a way out if it doesn’t work out.
8. Put in the Time
The first 10 years after moving out are the toughest. You’re just trying to get your life together. Some people prefer to enjoy their 20s more, which makes sense too. But I chose to work hard early on so I could relax later. Pick your strategy and stick to it.
9. Get Over Your Fear of Missing Out (FOMO)
FOMO can stress you out and lead to unnecessary spending. My advice? Avoid social media. Stop following others and start making your own path in life. Be content with what you have and remind yourself why you’re doing this. You will make friends and meet people along the way to your own destination.
10. Don’t Follow the Crowd
I grew up with the mindset that you had to go to school, work hard, have kids, get married, buy a house, and hopefully retire with some extra cash one day.
I struggled forever with changing the plan of family generations, but it had to happen due to a back injury. And deep down, I felt the depression setting in every time I thought of having kids. I don’t know why or what caused such a feeling but it was there.
All I’m saying is don’t follow the crowd just to fit in and make others happy. Make your own choices and own your life.
If I had followed the crowd and stopped when everyone else around me told me to, I would have never achieved my goals or found the happiness I truly was looking for.
Saving half of your income isn’t just a goal; it’s a lifestyle. It’s about making smart choices, staying motivated, and not being afraid to take the road less traveled. Good luck, and remember, every penny saved is a step closer to your dreams!
Thank You Credits: Photos by Kiersten Williams on Pexels.
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