She Strengthens

From broke to financially free: My journey to saving $20,000 in 18 months

As I sit here in my small furnished apartment in Lesotho, a country nestled inside South Africa, I am proud to say that I have managed to save $20,000 in less than two years. It’s a far cry from my previous life in Washington, D.C., where I was barely breaking even each month.

The turning point

Before making the drastic decision to move to Lesotho, I was living above my means. My rent was over $1,000 per month, and I was spending lavishly on luxuries. But I knew I had to make a change. I took a job in Lesotho, which pays a modest salary, but with careful budgeting, I’ve been able to save far more than I ever thought possible.

Debunking misconceptions about Africa

There are many misconceptions about Africa being a war-torn, violent, and dangerous place to live. While it’s true that some parts of the continent face challenges, there are many countries with “normal” ways of life, similar to what I experienced back in D.C. In Lesotho, I’ve found that the cost of living is similar to the U.S., with some things being cheaper and others more expensive.

The secret to my savings

So, how have I managed to save $1,600 per month? It’s all about making smart decisions and cutting back on unnecessary expenses. Here’s a breakdown of where my savings come from:

• Rent: By downsizing to a smaller apartment, I’ve saved $550 per month.
• Cable TV: I’ve ditched cable and now use Netflix, Amazon Prime, and a VPN, saving me $70 per month.
• Haircuts and dye jobs: I’ve taken matters into my own hands, buying hair dye at the grocery store and getting a haircut only every few months, saving $50 per month.
• New clothes: I’ve cut back on shopping, buying only what I need and investing in quality items, saving $350 per month.
• Yoga and gym membership: I’ve replaced my expensive yoga studio membership with free classes and YouTube videos, saving $160 per month.
• Salary increase: My new job comes with a higher salary, which has boosted my savings by $180 per month.
• Dinner and drinks out: By limiting my eating out and drinking, I’ve saved $200 per month.

The importance of smart budgeting

While some expenses have stayed the same, such as transportation and groceries, I’ve made conscious decisions to reallocate my funds from luxury categories to savings. At first, I used a budgeting spreadsheet, but it became too stressful. Now, I automatically put $1,600 into my savings account each month and make do with what I have left.

The takeaway

Saving money isn’t about living in a “cheaper” country; it’s about making smart decisions and cutting back on unnecessary expenses. By identifying areas where you can cut back, you can make significant gains in your savings. Take a closer look at your finances, and I’m sure you’ll be surprised at what you can achieve.