7 Ways to Get $50,000 in the Bank By 30 Years Old
No, you didn’t read that title wrong. For many young people, the idea of saving $50,000 by the age of 30 seems like a pipe dream. But if you’re willing to remain focused, exercise some discipline and use your determination to stay the course, it’s actually a very achievable goal. How so? Keep reading to learn the simple secrets to saving $50k before your 30th birthday.
Simple Ways to Meet Your Savings Goals
Break It Down
First thing’s first: if you’re going to hit that $50,000 goal, then you need to change how you think about the sum total. Instead of viewing it as a massive, unattainable number, try breaking it down into a week by week, month by month goal instead.
For the purposes of this article let’s assume you’re around twenty years old, meaning you have 10 years to reach your goal. Fifty-thousand divided by 10 equates to $5,000 a year, which divided by twelve gets us to $416 a month, or $104 a week.
Not so undoable when you break it down, right? Small but consistent savings over a long period of time can add up to huge returns, and that’s the key concept behind this financial plan.
No More Lotto
If you like playing the lottery for entertainment that’s fine, but let’s make one thing very clear: you have next to no chance of winning. You are literally more likely to be struck by lightning while being attacked by a shark than winning the Powerball. And meanwhile, you’re throwing your money away one dollar at a time. Wouldn’t it just be better to put that lotto money in your savings account and watch it grow over time?
Eat Out Less
Not only can it have deleterious long-term health effects, eating out on a regular basis is a lot more expensive than you might realize. Even the seemingly insignificant cost of your morning cup of coffee can add up to big money over time. Start packing your lunches, carry your morning coffee in a travel mug and you’ll be on your way to reaching your goal.
Cut Out Your Vices
There are two other vices that will slowly kill you while also costing you hundreds, if not thousands of dollars a year: alcohol and smoking. They may seem fun and good in the short-term, but in the long-term, they will cost you your health and your money. Can you really afford that?
Reduce Your Debt
One of the best ways of saving money in the long-term actually has to do with making an investment now. Your first order of business before putting money in savings should always be to pay off any outstanding debts first. The interest on your debt equates to money wasted, and while you may have thought you had a good reason to use credit cards or payday loans to cover your expenses, you need to start your saving journey with a clean slate.
While we’re all reluctant to give up our privacy and autonomy, carpooling is one of the single most effective things you can do to save money. You will significantly reduce the wear and tear on your car in the long-term by not driving every day, and in the meantime, you will also cut your fuel costs. While it may not be your idea of a pleasant way to commute, many people end up preferring the social aspect of carpooling.
Don’t Buy Bottled Water
You know the most expensive part of bottled water? While the water does have a certain cost in the production process, the most expensive part of a bottle of water is the bottle and the transportation cost of getting it to the store. Instead of wasting your money on bottled water, get yourself a home filtering system for your sink and a reusable water bottle. It works just as well and will save you a huge amount of money over the course of your saving journey.
Related: A penny saved is a penny earned! Start a penny-saving challenge for National one-cent day.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.