3 smart steps a millennial took to save $92,000 in a year
Posted by The Editor on June 24, 2021 9:48 am
Tags: Budgeting, DFP, Investing, Personal Finance, Personal Finance Insider, pfi, PFI GOBankingRates, PFI Related Content Module, PFI-XAMP, Saving, Savings Rate, side hustles, Spending
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Photo courtesy of Haley Kowalewski
- 27-year-old Haley Kowalewski started with a side hustle and saved $92,000 in a year
- She cut back her living expenses by living with roommates and later her mom.
- She kept track of her expenses and spending in a spreadsheet, and used buckets for saving money.
- Read more Personal Finance Insider coverage »
Twenty-seven-year-old Haley Kowalewski spent 2020 saving.
In a year, she managed to grow her net worth by saving and investing $92,000. Working in recruiting and on the side as a financial coach, Kowalewski managed to grow her wealth with several strategies.
Here's how she was able to save and invest so much, so quickly.
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1. She started a side hustle in her free time
Kowalewski started a side hustle as a financial coach in September 2019. "I started up the side hustle where I'd coach primarily millennial and Gen Z women, people of color, and LGBTQ [people] on finance and investing. I started it with charging $15 an hour," she said.
As she built up her side hustle, and built up her brand on TikTok and Instagram, it became a larger part of her income and gave her more cash to save. "I'm bringing in a couple thousand [dollars] every single month from it," she told Insider.
But it doesn't take thousands of dollars a month to make a difference. "Even bringing in an additional $200, $300, $400, or $500 a month can have so much impact, especially if you're investing that money over the long term," she said.
2. She lived cheaply and cut costs as much as possible
Living in Los Angeles, where living costs are high, she needed to cut her expenses as much as possible. "I lived with roommates, then I lived with a partner. When we ended up long-distance, I was in a cheap studio," she said. ''
Pre-pandemic, she did whatever she could to cut costs, especially on things she didn't prioritize. "I brought my lunch every day. I noticed a lot of people in my office would [eat out], but it's a big expense, basically," she said. "You've got to identify things that you want to spend money on."
When the pandemic hit, she increased her savings by moving in with her mom. "I was very fortunate, and last year I was living on and off at my mom's house. A lot of people don't have that opportunity, but obviously, it cut down from October through [June] on rent," she said.
3. She kept track of her costs in a spreadsheet and 'bucketed' her money
She tracks her expenses and her savings rate closely. "I know every month how much I'm putting towards investing," she said.
She keeps her designated spending money as organized as possible and uses a bucketing method for her savings. "I have buckets for saving. If I have a big purchase coming up, I'm saving for it well in advance because I struggle making really big purchases. So having a bucket of money that I can put towards a big purchase is big," she said.
Keeping track of her expenses and spending less were both important factors to her strategy. "I don't say I track every single cent, but I do keep track of my expenses. I try to keep them low and keep my savings rate high," she said.
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