She Strengthens

Transforming My Finances: A Journey to Savings

In 2015, I embarked on a new career path, relocating to LA with a modest savings account. The initial year was a struggle, with numerous expenses piling up, including rent, gas, lunch, and unexpected moving costs. My savings balance fluctuated constantly, causing significant stress. However, when I decided to quit my job without a guarantee of another one, I knew I needed a safety net.

Building an Emergency Fund

I started my emergency fund in late 2014, aggressively saving chunks of my paycheck. By mid-February, I had managed to save about three months’ rent, plus additional expenses. Although I didn’t reach the ideal six months’ rent recommended by experts, this fund became a crucial safety net during uncertain times.

Seven Strategies for Saving $8,000

After quitting my job, I employed several tactics to save money. Here are seven key strategies that helped me accumulate $8,000:

1. Renting Out My Apartment

Airbnb became a lifesaver, covering my entire rent for the first couple of months after quitting my job. This allowed me to pocket all my freelance earnings and avoid dipping into my emergency fund.

2. Downsizing My Rent

Moving out of my apartment and finding a roommate reduced my rent by $250/month. This amount was directly allocated to savings every month.

3. Living Frugally

During the initial months without a full-time workload, I lived extremely frugally. Even when I started working full-time as a freelancer, I maintained this mindset, concerned that one of my contracts might disappear.

4. Side Hustling

I began asking around for extra income opportunities, such as babysitting, and made time for these gigs despite a busy schedule.

5. Cutting Back on Fun

I significantly reduced unnecessary expenses, including shopping, eating out, and buying drinks. This discipline helped me save a substantial amount.

6. Saving for Taxes

I was paranoid about not having enough for taxes, so I saved an excessive amount. Although I later discovered I was oversaving, this caution helped me build my savings.

7. Stashing Unexpected Money

Any unexpected income, such as birthday gifts or rebates, went directly into savings. This strategy helped me accumulate a sizable amount.

The Power of Savings

By adopting cost-cutting practices and making savings a priority, I developed habits that have made me a better saver in the long term. I’ve learned that the out-of-sight principle works best for me, and I now maintain a cushion in my checking account while keeping my savings separate.