Kicking Ass at Saving: My Top Strategies for Financial Success
As a self-proclaimed over-saver, I’ve learned that finding the perfect balance between saving and living is key. While it’s easy to get caught up in the thrill of watching your account balance grow, it’s equally important to enjoy the fruits of your labor. In 2016, I managed to save an impressive $24,000, and I’m excited to share my top strategies for achieving financial success.
My Savings Breakdown
In 2016, I saved:
- $9,000 in savings
- $5,500 in my Roth IRA
- $8,500 in my 401(k)
- $1,200 in my Employer Stock Purchase Plan (ESPP)
That’s a total of roughly $24,000, or over 40% of my net cash received for the year.
How I Did It
My savings strategy was twofold. First, I have a well-paying full-time job and receive additional income from renting out a room in my house. I also received a promotion at work, which gave me a salary increase. However, the most important factor was controlling my spending. I’m a firm believer in delayed gratification, and I’m willing to give up something now to gain more in the future.
Top 4 Ways to Save Over 40% of Your Income
So, how can you become a badass saver like me? Here are my top four strategies:
1. Budget Like a Pro
Budgeting is a simple yet effective way to take control of your finances. By tracking your income and expenses, you can identify areas where you can cut back and allocate more funds towards savings. Remember, you control your money, or it controls you.
2. Automate Your Savings
Set up automatic transfers from your checking account to your savings account. This way, you’ll ensure that you’re “paying” yourself first and making savings a priority.
3. Make Trade-Offs
We all have different priorities in life. Whether you want to travel, upgrade your wardrobe, or invest in your kitchen, make sure you’re allocating your funds accordingly. Be willing to cut back on non-essential expenses to achieve your goals.
4. Increase Your Income
One of the most effective ways to boost your savings is to increase your income. Consider taking on a side hustle, freelancing, or picking up a part-time job to supplement your income.
Remember, saving is all about discipline and willpower. If you truly want to reach your financial goals, you’ll need to make sacrifices now to reap the rewards later. So, what are you saving for in the new year?
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