She Strengthens

Breaking the Mold: How I Saved $20,000 on a Modest Income

As an independent singer-songwriter, I’ve defied the odds by saving a significant amount of money despite earning a modest income of $20,000 per year. It’s taken me four years to reach this milestone, and I’m excited to share the strategies that have helped me achieve it.

Avoiding Debt and Lowering Expenses

I’ve been fortunate to have a few advantages that have contributed to my savings. Firstly, I graduated from a two-year college program in my hometown, which allowed me to live at home and avoid student debt. Additionally, I’ve been able to live with my parents when needed, which has helped reduce my housing expenses. While not everyone may have these advantages, it’s essential to find ways to minimize debt and lower your largest budgetary expense – housing.

Smart Financial Habits

Beyond my initial advantages, I’ve developed several financial habits that have helped me reach my savings goal.

Ditching the Car

I’ve chosen to forgo owning a car, despite living in a city with limited public transportation. By taking the bus, I’ve been able to save approximately $10,000 per year on car-related expenses like insurance, gas, and maintenance. My subsidized bus pass costs only $75 per month, and I limit my rideshare usage to 1-2 times a month.

Tracking My Income

I’m a fan of lists and visual aids, so I started using Google Sheets to track my income and expenses. This has helped me stay on top of my finances and make informed decisions about my spending. I’ve even created pie charts and bar graphs to visualize my savings growth, which has become a great motivator for me.

Specific Expenses

I used to overspend on food, especially when eating out with friends and family. To combat this, I created separate categories for “fast food” and “experiences” in my budget. This has allowed me to cut back on unnecessary expenses and prioritize spending on meaningful experiences. I’ve saved approximately $500 per month by making this change.

Multiple Income Streams

Having multiple jobs has been a game-changer for me. While it can be challenging to balance multiple roles, it’s allowed me to increase my income and savings simultaneously. I’ve been able to live off one income source and save the other, which has added up to an additional $5,000 per year.

Living Below My Means

As a small business owner (of one employee – myself!), I’ve learned to live below my means despite having a modest income. I opt for low-cost activities like backyard hangouts instead of expensive outings, and I make gifts for friends and family instead of buying them. These small habits may not seem like much, but they add up over time.

By adopting these financial habits, I’ve been able to build a career as an independent singer-songwriter while saving for long-term goals. It’s not always easy, but it’s worth it to achieve my dreams.