She Strengthens

From Broke to Thrifty: How I Saved $25,000 in One Year

After graduating from college, I faced a daunting financial reality. With less than $2,000 in my bank account, I knew I had to get creative with my finances. I landed a job as a technology salesperson, but I was determined to save aggressively to achieve my goal of entering a post-grad program in my mid-twenties.

Budgeting Around My Base Salary

I started by budgeting around my base salary, ignoring the uncertainty of commission and bonus payments. This allowed me to focus on building savings targets into my guaranteed income. Any extra earnings were treated as a bonus, which I promptly deposited into my savings account.

Affordable Living

I opted for student housing, which provided a flat monthly rate that covered rent, utilities, and internet. This simplified my bill payments and helped me keep track of my expenses. Although it wasn’t the most luxurious living arrangement, it was functional, clean, and safe.

Fitness as a Hobby

My employer offered a corporate gym membership, which I utilized to stay active and focused. This perk not only helped me manage stress but also sparked my interest in weightlifting. By investing in my physical health, I avoided expensive fitness classes and social gatherings that could have drained my wallet.

Cycling to Get Around

Instead of relying on public transportation, I dusted off my old bike and used it as my primary mode of transportation. This decision saved me over $150 per month and allowed me to get to work in under 10 minutes.

Rewarding Myself

Saving aggressively can be challenging, so I budgeted for biweekly manicures to keep myself motivated. This small indulgence helped me stay focused and happy, reminding me that saving didn’t have to mean sacrificing everything.

Saving Bonus Compensation

When I received bonus payments, I resisted the temptation to splurge and instead deposited the entire amount into my savings account. By focusing on my long-term goals, I ignored the allure of instant gratification.

No-Spend Weeks

To challenge myself, I implemented “no-spend” weeks, where I aimed to spend $0 on non-essential items. Each day I succeeded, I marked it on my calendar. Once I reached a week, I treated myself to something small, like a latte or takeout. This exercise helped me develop a greater appreciation for the value of money and the impact of impulse purchases.

Cutting Bad Habits

I identified areas where I could improve my spending habits, such as impulsive takeout orders, online shopping, and alcohol consumption. By reframing these vices in my mind, I realized they didn’t bring me lasting joy. I replaced these habits with healthier alternatives like cooking, reading, and working out, which benefited both my wallet and well-being.

Tax Return Bonus

The following year, I saved half of my tax return, adding an extra $4,000 to my savings. Although I couldn’t save 100% of it, I still wanted to make the most of this opportunity to boost my savings.

Lessons Learned

My year of saving taught me valuable lessons about discipline, patience, and the importance of prioritizing my goals. As I continue my post-grad journey, I intend to carry these habits forward, knowing that they will serve me well in the long run.