How I Saved My First $100,000 (My Formula)

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Chapters

00:00 Start Here
01:28 Make a low income for a long time
02:42 Make good decisions at an early age
05:54 Save all extra money
07:16 Create a savings plan
08:12 Be frugal
09:05 Take advantage of free money
10:10 Be more aggressive as income increases
11:16 See and seize opportunity
12:58 Invest
14:26 Looking at my own situation and making it work

In the past four years, I have gone from $0 to $100,000 in savings and I did it on very average incomes (no more than $55,000/year). In this video, I explain 10 things that helped me save my first $100,000.

1. Make a low income for a long time

The first thing that helped me save $100,000 was before I started making a high income, I was making a very low income for a very long time. Earning a low income forced me to learn the value of a dollar, how to stretch money, and how to budget. And because I had these skills, once I started making a higher income, I was able to save at a much quicker rate.

2. Make good decisions at an early age

Something that holds people back or helps people get ahead financially are the decisions they make between the ages 20 to 30. I made very good decisions in this phase of my life like not taking on student loans, avoiding consumer debt, and developing good financial habits. These decisions allowed me to focus on financial goals rather than financial burdens.

3. Save all extra money

In life there are moments when you receive extra money and one thing that helped me reach $100,000 much quicker was acting as if I never received this money and saving it. I was able to go from $5000 to $20000 in a matter of months because of this extra money.

4. Create a savings plan

My first adult income was $48,000/year and when I received this income, I had never made anything close to it before and I wanted to maximize my savings rate. So I sat down, wrote down my expenses, subtracted it from my income, and determined how much money I could save, which allowed me to save at a very steady pace.

5. Be frugal

I was able to save a lot of money despite having an average salary because I lived a frugal life and kept my expenses low. Frugal living is a great tool that allows you to save at a much quicker rate.

6. Take advantage of free money

Over 20% of my $100,000 was actually free money because a huge chuck of it was from my employer match. If you get a match for a 401k it is important to take advantage of it because it is free money.

7. Be more aggressive as income increases

The next adult salary I had was $72,000, which was a drastic raise from my past salary. And when I got this raise, I decided that I wasn't going to increase my quality of life and instead save 100% of the extra income, which allowed me to save at a much quicker pace.

8. See and seize opportunity

Getting the huge raise and starting to make $72,000 was a very unique opportunity in my life because I was on a contract and I knew once the contract ended that I would be making less money, which is why I was so aggressive with saving. Opportunities don't come around that often, but when they do it is important to see and seize them.

9. Invest

Over 80% of my money is invested in the stock market, which has passively grown my money over time. In order to reach $100,000 it is important to get that money to work for you by investing in the market.

10. Looking at my own situation and making it work

In this video, I explained how I saved my first $100,000 and my story is unique to me and many things might not apply in your own life. Instead of comparing your saving journey to others, it is important to look at your own situation, decide what's possible, and make it work.

**This video is intended for entertainment purposes only, none of it should be interpreted as financial advice. Links above are affiliate links where if you click and order, I will receive a commission at no cost to you. **

[ElAgustin]

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[Suntz_u]

Net worth truly snowballs after $100k! Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE!

[emilyfreddie]

Great video and very straightforward. I don't see any other perfect time for one to invest in crypto and trade than now. I don't think that buy and hold is a valid investment strategy anymore but trading is worth it and you make more money when you trade correctly. just made my first $100, 000 in crypto and I barely know how to express how happy and excited I am right now. Its all about knowing what strategy to apply and when.

[thinktankpolskathinktankpo]

As a debt collector with 15 years of experience, I must say that your content on YT is very much needed

[nicolasbenson]

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

[azieltobias]

I began my investment journey at the age of 33, primarily through hard work and dedication. Now at the age of 58, I am thrilled to share that my passive income exceeded $100k in a single month for the first time. This success reinforces the importance of the advice mentioned earlier. It is not about achieving quick wealth, but rather ensuring long-term financial prosperity.

[mybdayis]

congratulations! heres to another $100k 🎉

[_Feed_Me]

In 2022 my boss text me (while I was cheaply cutting my own hair), saying I was being given a 17% cost of living raise, and I think I got even more frugal. Don’t recall adding any additional expenses to my life.

[Delthalaseiden]

I am at 54, 000
I still have a long way to go, but I hope to achieve it in 3 years. Thanks for sharing

[lifewithbakari]

It doesn’t matter how much you make it matters how much you keep

[tlapace]

I like how he includes all his sources of savings including, "free money".

[Andreyatl]

Great vid and channel !As an immigrant I was working 3 jobs living in motel 4 years the only "furniture" was my sleeping bag :) but purchased my first house with saved money, paid cash no mortgages.And looking back I'm glad I was so poor and didn't have eyes bigger than my stomach

[daodejing]

I agree. It's not about the quantity of wealth but about the wisdom, the strategy.

I have done the trip to $100, 000 many times. The trip is easy if you are disciplined and diligent.

[Beeannks]

Congratulations! 🥳 I started frugal financial at the beginning of this year. Prior to that I would spend money and waste it. I decided I was going to go as frugal as I could with my money and set a goal of saving $10, 000 in three months. Well this is the third month and I achieved my goal. It is the first time I’ve ever saved that much. I’m low income in Australia and paying off a mortgage by myself. I’ve been working 6 days a week and only spending money on bills and as little as possible on a food shop. All excess money goes straight to savings. No spending on anything else. It can be done but depends on how much you are willing to give up to get there. I’m going to continue the goal of $10, 000 every three months and can’t wait for my first $100, 000. 🎉

[ExplorationB]

Another tip is not to necessarily "look poor" but shop poor. That is, buy clothes at the outlets and plan purchases so you're ready to buy at a more acceptable price. I have royal doulton (sp?) dinner sets, $1k Italian suits, and leather shoes all purchased for Kmart prices. Buy once, buy well, and buy on sale. I absolutely agree with you on all this. I bought a modest sized apartment in a beautiful building for half my borrowing power and will pay it off in 8 years with an emergency fund if I need it. The feeling of security I would never trade for my 20s lifestyle of party party. Loved this video.

[cyoishi]

Congratulations Austin! Quite an achievement to reach the $100K in only 4 years. Nicely done.

[trialanderrorbym.f]

It's the clearing throat for me before the announcement 😂😭anyway El Augustin congratulations 🎊 🎉u deserve it, u work hard for it.I don't know why i feel like u gon make it to one million, because u good at what u do.

[Shelley]

YES!!.I am frugal but still do things I enjoy....wish I could get my husband on board! He makes good money but spends most of it and refuses to even compare prices on things!!! 😞

[ejzvffr]

I have watched two videos of your channel... literally found out about your videos today. I am already a fan. I LOVE how brutally honest you are. New subscriber. I am very inspired.

[nomencalatus]

Something is not adding up. He said he got his raise from 48k to 72k during COVID yet at the beginning of the video he shows he never made more than 55k and never showed a salary of 48k. Hmmm 🤔