Savings Superstar: My Journey to $70,000
As I embark on my undergraduate degree, I’ve set a daunting goal for myself: to save $70,000 CAD ($54,881 USD) over the next six years. This substantial sum will serve as a down payment on a home, or perhaps even kickstart my retirement savings. Living with my parents has made it possible to save aggressively, but it requires discipline and sacrifices.
Year One: A Strong Start
In my first year, I managed to save $14,400 CAD ($11,293 USD) by working two jobs and utilizing my existing savings. To reach my goal, I need to save an average of $11,667 CAD ($9,150 USD) annually. Breaking it down into smaller, manageable chunks, I’ve set a target of $10,000 CAD ($7,843 USD) for each of the remaining three years of my undergraduate studies.
The Challenges of Saving on a Limited Income
My work-study job limits me to 15 hours of work per week, with an hourly wage of $15 CAD (~$12 USD). After deductions, I take home $443.72 CAD ($348 USD) bi-weekly. To meet my goal, I transfer $300 CAD ($235 USD) into my High-Interest Savings Account every payday, leaving me with a modest $143.72 CAD ($112 USD) for expenses.
Cutting Back and Finding Efficiencies
To save almost 75% of my income, I’ve had to make significant lifestyle changes. I’ve reduced my pleasure spending, opting for affordable meals on campus and curbing my latte habit. I only purchase clothes during sales, and I’ve stopped buying non-essential shoes and makeup. My long commute has also forced me to reevaluate my priorities, and I’ve found ways to save on transit costs by working from home and adjusting my schedule.
Side Hustles and Summer Goals
To supplement my income, I’ve taken up transcribing audio files at rev.com. Although I’m still slow, I’m determined to improve my efficiency. As summer approaches, I plan to increase my monthly contribution goal to $1,300 CAD ($1,020 USD), which will help me reach my $10,000 target for the year.
Staying Motivated and Focused
Saving on a limited income requires discipline and creativity. By sharing my goal publicly, I hope to inspire others to take control of their finances and stay motivated to reach their own targets. The thought of having $70,000 in my bank account in a few years is exhilarating, and I’m excited to see my progress unfold.
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