100K BEFORE 30? Yes, it's possible! 💰

Hey Lemon8 pals! 🍋 Are you navigating your 20s and eyeing on that $100K milestone by 30? 👀 Ever wondered why that specific number? Well, there's no magic behind it, but most of us see it as a comfy amount for future endeavors like a BTO, wedding, or a dream vacation. 💰

I get that many folks might be skeptical, but trust me, it's doable. I'm on my way to hitting that goal, despite starting my first full time job at 25 due to uni. Let me spill the tea and share how!

1️⃣Maximize Earning Power

There is no way you can easily hit $100k by 30 if you do not maximize your earnings. Just imagine you are earning $2.5k a month; how much are you left after deducting CPF? Not to include all your basic expenses, etc. 💸You probably won't have enough money to save. The quickest way is to maximize your earning power so that you can save more. You can achieve this by taking on more responsibilities at work, getting an increment, and looking for side hustles. Besides my day job, I am working on other income streams such as my personal finance blog and options trading.

2️⃣Spend less than you earn

How are you able to save 100k by 30 if all you're doing is saving your paycheck for designer items every month? There are two simple ways to get more money: by earning more or spending less. That simple. It ain't rocket science.

3️⃣Make your money work harder

Are you still using the traditional POSB savings account for all your savings? You probably should not as inflation is rising every year. Letting your money sit in the bank could erode its value. Why not let it sit in a high yield savings account such as UOB one? You can get up to 5% interest although they claim that it is 7.8%. but 5% is still pretty cool yeah.

You can allocate the rest of your funds into avenues that offer higher returns, accelerating your journey toward financial milestones. Some of these instruments are stocks, ETF, REITS.

While these avenues promise higher returns, it’s crucial to understand that higher returns come with higher risks. Only invest what you can afford to lose, and always ensure sufficient cash flow for your living expenses.

4️⃣Creating a budget.

If you fail to plan, you plan to fail. Creating a budget is crucial. Personally, I use the 50/30/20 rule, which means 50% for needs, 30% for wants, and 20% for savings and investment. This helps you track your expenses – revealing spending patterns and identifying areas where you can make adjustments. 🤯 However, do note that you need to adjust as you move along because if you start to earn more money, 50% for needs may become a bit excessive.

Here's what I typically spend in a month:

Parental allowance - $300

Insurance - $120

Groceries - $200 (I cook for my family and meal prep a lot)

Transportation - $200

Dining out - $300

Drinks & shopping - $200

Membership - Anytime Fitness, Blessed MMA ($200)

Misc - $50 (phone bill, etc.)

I am very blessed that I am still living with my mom, thus I do not need to pay rent, etc. Despite these, I am still spending around $1. 7K a month. 😔 I am still exploring ways to cut down my expenses further, especially dining out. In fact, I'm pretty amazed by how other content creators can manage to spend less than $1k a month as someone in the late 20s.

The downside is that I only started working full time at 25 after graduation, thus I did not have much savings, but it's not too late to start now.

Let me know if you have any tips and advice for me! Also, I actually wrote about this topic with greater detail on my personal finance blog: eugenechaitf.com please support if you can 😊

#financialplanning #moneytips #moneyhacks