How To Save Your First $100,000

Perhaps these past few years would be the ones that highlighted uncertainty. Everything that we thought would be rock solid had come crashing down. Financial institutions, companies and countries have all stumbled and are struggling to stand back up. Even the weather was highly erratic. It's not at all unusual to worry and wonder how you will weather the storms that enter your life from time to time. Financial stability, apart from being able to pay unexpected bills, funding your child's education or your own retirement, gives the confidence and strength to go through everyday life. By saving money and increasing your income you too can move towards earning your first $100,000. And once you do that, the way to the next $100,000 becomes easier.

SEE: Anytime Is The Right Time To Start Saving For Retirement

The Right Mindset
Saving your first $100,000 is a goal that is neither short nor easy. To get there you need to start training your mind. You need to understand how to achieve this goal and plan accordingly. If you are the kind of person who rarely notes your expenses or budgets, now would be the time to start. All actions need to be oriented towards achieving this goal. Saving could start from reducing that daily Starbucks habit or taking a bus to work. If you understand that these are minor sacrifices for a little less financial uncertainty, the going will be smoother.

Create Short-Term Saving Goals
It's all very well to imagine yourself in a country home post-retirement, but that may not get you going for now. Break your saving goals into further short-term goals. They could be even be weekly goals. For example, a man who ran a dry-cleaning service decided he would take some small change everyday and put it in his daughter's college fund, starting from when she was five. This did not hinder his business or his day-to-day life, and he had a tidy sum by the time his daughter was ready to go to college. The earlier you start and the smaller the amounts are when you first start, then you'll know you have started covering the distance of a long journey. You could have daily saving goals too. This will help keep you fired up for the longer goals. Savings accounts, certificates of deposits, money market deposit accounts and government bonds are good short-term money saving instruments. A savings account is particularly useful as an emergency fund keeper. These instruments also earn you an interest on your savings.

Save on Taxes
If you are employed and your employer is enlisted, go for a 401(k) tax deferred saving plan. The amount you contribute to the plan and the earnings on it are tax-free, until you pull it out for retirement. The percentage you contribute also reduces your taxable income by the same percentage. Early on in your career, you can invest in stocks more aggressively. If your employer is not enlisted with a 401(k) plan, then you could go for an individual retirement account (IRA). Earnings in an IRA account are also tax deferred. To enroll in either, all you have to do is fill out a simple form and contribute. This is a structured way to save, where the interest is compounded, with tax savings to boot.

Reduce Your Interest Burden
We want it all. We want the home, car, home theater system or the double door fridge. With a few easy key stokes online and we can have it. It turns out that instant gratification has a hefty price that could take years to repay and even years off your life. Prioritizing debt and reducing it is the first critical step to saving. Take a look at all of your loans and see how long it will take you to whittle them down. If you do have savings or fixed deposits, you can liquidate some to reduce your debt burden. If you get a bonus or a dividend, think of prepaying a part of your mortgage to reduce your interest burden. In the case of credit card debt, talk to your credit card company and negotiate for a lower rate if possible. Companies are sometimes offering to take on other credit card company loans at a lower interest in their pursuit of new customers. If you need to take out a loan, make sure you look around carefully and take money with the least interest. You will be surprised how many people don't. Do ask friends and family who might be willing to extend interest free loans for shorter periods.

Take Advantage of Employee Benefits
Look at how your employer can be your partner in your savings goal. Many employers contribute an equal amount to 401(k) plans. Contribute aggressively. Avail any other benefits your employer may provide like special discounts at stores, coupons or health plans. If your employer provides assistance for skill upgradation or 'back to school' programs, use them.

Generating Additional Income
Generating revenue is the other oar that will help you reach the $100,000 goal faster. Do you sew, do some other craft or teach? These are some hobbies that can help rake in some extra money. You could tutor children for a few hours or sell your crafts at the weekend market. You could spend some time investing in stocks or do some freelance projects. Don't let any of your skills or talents go to waste. They will help you earn some more money and keep you more fulfilled.

Keep Costs Low
There are always things you can do to keep your costs down like make more home dinners, walk short distances rather than take the car, read online rather than taking magazine subscriptions, take your kids to the park or zoo rather than the local mall, buy your groceries in bulk for the month and you will save more, stop smoking, take lunch to work, use your car until it can't be used anymore, buy a house within your means, if not rent, if you are not using that gym membership then don't renew it, recycle and reuse, use alternative energy to light and heat your home and you can sell what you don't use. The list is endless. There are many possibilities of saving in our everyday life. The dollars and cents will all add up to your $100,000 goal. Your quality of life will improve and not suffer.

The Bottom Line
Getting to your first $100,000 can be fulfilling, with many financial and non-financial insights along the way. It could mean redefining the way you live now, or strengthening it. Be it emergencies, or greater financial maneuverability and therefore opportunities, getting to that first $100,000 is a good habit to learn and keep.

SEE: Saving For Retirement: The Quest For Success



More From Investopedia

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
  • Wall St. falls after Fischer, Yellen comments
    Wall St. falls after Fischer, Yellen comments Reuters - 5 minutes ago

    U.S. stocks were lower in a choppy session on Friday, with stocks bouncing between gains and losses as investors grappled with the possible timing of a U.S. interest rate hike after comments from Federal Reserve officials, including Chair Janet … More »

  • Stocks slip into losses in the afternoon after Yellen speech
    Stocks slip into losses in the afternoon after Yellen speech Associated Press - 11 minutes ago

    Stocks were lower on Wall Street in afternoon trading on Friday, giving up modest gains following a generally upbeat assessment of the economy from Fed Chair Janet Yellen. Phone companies and utilities, ... … More »

  • Dutch PM Mark Rutte announces third-term candidacy
    Dutch PM Mark Rutte announces third-term candidacy AFP News - 11 minutes ago

    Prime Minister Mark Rutte announced Friday his candidacy to head the Dutch government for a third succesive term in office, as the countdown moves towards next year's parliamentary polls. "Rutte also informed his top party leadership about his … More »

  • Canada PM Trudeau to mount charm offensive in China: officials
    Canada PM Trudeau to mount charm offensive in China: officials AFP News - 19 minutes ago

    Canadian Prime Minister will tour the Great Wall, shoot hoops with retired basketball star Yao Ming and host a roundtable of women entrepreneurs when he travels to China next week to bolster trade and diplomatic ties, his office said Friday. There … More »

  • Dollar up on Yellen's case for U.S. rate hike; stocks surrender gains
    Dollar up on Yellen's case for U.S. rate hike; stocks surrender gains Reuters - 19 minutes ago

    U.S. stocks gave up early gains in choppy trading on Friday, hurt by a surging U.S. dollar as investors grappled with the possible timing of an interest rate hike after comments from several Federal Reserve officials, including Chair Janet Yellen. … More »

  • Canada's peacekeeping pledges will have a 'big impact': UN
    Canada's peacekeeping pledges will have a 'big impact': UN AFP News - 34 minutes ago

    The United Nations on Friday applauded Canada's decision to commit 600 troops and funding to peacekeeping, saying it will have a big impact. UN officials will quickly begin talks with Ottawa to nail down the specific details of the contribution, … More »

  • Morales sees 'conspiracy' in Bolivia minister's murder
    Morales sees 'conspiracy' in Bolivia minister's murder AFP News - 35 minutes ago

    Bolivian President Evo Morales said Friday there was a "political conspiracy" against his government after protesting miners allegedly kidnapped, tortured and beat to death a deputy minister who tried to negotiate with them. Defense Minister Reymi … More »

  • Yellen's case for rate hike boosts dollar; stocks surrender gains
    Yellen's case for rate hike boosts dollar; stocks surrender gains Reuters - 1 hour 3 minutes ago

    U.S. equities gave up early gains on Friday, hurt by a surging U.S. dollar after Federal Reserve Chair Janet Yellen said that the case for raising U.S. interest rates has strengthened in recent months. European stocks advanced, however, while oil … More »

  • Oil steady in volatile session, on track for weekly loss
    Oil steady in volatile session, on track for weekly loss Reuters - 1 hour 10 minutes ago

    Oil prices were largely unchanged on Friday in a volatile session, as traders reacted to comments from Fed Chair Janet Yellen and reports of missile activity in Saudi Arabia. The market was taking its cues from the movement in the dollar, which has … More »

  • 11 Turkish police killed in PKK suicide bombing
    11 Turkish police killed in PKK suicide bombing AFP News - 1 hour 26 minutes ago

    The outlawed Kurdistan Workers' Party (PKK) on Friday claimed a suicide truck bombing on a police building in Turkey's southeast that killed 11 officers and wounded dozens more. The blast came two days after the Turkish army launched an offensive … More »

  • Stada shareholder AOC says wants board change not break up
    Stada shareholder AOC says wants board change not break up Reuters - 1 hour 32 minutes ago

    Stada shareholder Active Ownership Capital (AOC) is looking to replace most of the German drugmaker's supervisory board on Friday but has no desire to break up the 120-year-old company, one of its founding partners said. AOC wants to replace six of … More »

  • Upbeat Yellen sees markets stir, but Dow drifts
    Upbeat Yellen sees markets stir, but Dow drifts AFP News - 1 hour 45 minutes ago

    European stock markets stirred Friday at the end of a tranquil week as Federal Reserve chief Janet Yellen indicated there was a case for raising US interest rates. Market watchers had been waiting for Yellen to show her hand in an address to an … More »

  • British economy escapes Brexit blow, for now
    British economy escapes Brexit blow, for now Reuters - 1 hour 53 minutes ago

    Britain's high streets are heaving with shoppers despite June's shock vote to leave the European Union, big companies have reported few signs of distress and some tabloid newspapers are even talking about a post-Brexit economic boom. The … More »

  • RUBBER-Tokyo futures prices after evening session Aug 26 Reuters - 2 hours 14 minutes ago

    Following are prices for Tokyo rubber futures at the end of the Tokyo market's evening session on Aug 2016. Contract Day Volume Evening Volume * Aug 154.1 13 153.9 3 * Sep 155.6 41 156.5 66 * Oct 151.8 ... … More »

  • TABLE-INDONESIA KPB NUSANTARA PALM OIL PRICES - Aug 26 Reuters - 2 hours 15 minutes ago

    Aug 26 (Reuters) - Following are Indonesian prices for crude palm oil (CPO) quoted at an auction by PT KPB Nusantara (formerly known as the state marketing centre) on Monday. Buyer Volume Price Terms (tonnes) ... … More »

  • Google hires Airbnb exec to commercialize self-driving cars Reuters - 2 hours 23 minutes ago

    Alphabet Inc's Google self-driving car project took a step closer to market with the hire of a top executive from Airbnb, the online vacation home rental marketplace. Shaun Stewart is joining Google as a director of the self-driving car project, … More »

  • Global Economy Weekahead - U.S. jobs data to test case for rate hike
    Global Economy Weekahead - U.S. jobs data to test case for rate hike Reuters - 2 hours 25 minutes ago

    U.S. jobs data top economic readouts from around the world next week as global markets begin to return to business as usual following a typically quiet August with the calm broken on Friday by comments from Federal Reserve Chair Janet Yellen. … More »

  • FTSE gains after Yellen comments, Glencore rallies
    FTSE gains after Yellen comments, Glencore rallies Reuters - 2 hours 25 minutes ago

    Britain's top share index rose on Friday after Federal Reserve Chair Janet Yellen indicated that a U.S. interest rate rise could come later this year, a relief for investors after last week's hawkish comments from some Fed policymakers. The blue … More »

  • Tribe trucks totem pole 4,800 miles in fossil fuels protest
    Tribe trucks totem pole 4,800 miles in fossil fuels protest Associated Press - 2 hours 27 minutes ago

    A Pacific Northwest tribe is traveling nearly 5,000 miles across Canada and the United States with a 22-foot-tall totem pole on a flatbed truck in a symbolic journey meant to galvanize opposition to fossil ... … More »

  • Oil falls as Saudi Arabia douses expectations for output freeze
    Oil falls as Saudi Arabia douses expectations for output freeze Reuters - 2 hours 29 minutes ago

    Oil eased on Friday, on course for its largest weekly decline in a month after the Saudi energy minister watered down expectations that the world's largest producers might agree next month to limit their output. Members of the Organization of the … More »

  • AXA prevails after U.S. trial on excessive fund fees Reuters - 2 hours 31 minutes ago

    U.S. District Judge Peter Sheridan in Trenton, New Jersey, said late Thursday that the investors did not show that AXA breached its fiduciary duties by keeping most fees charged for mutual fund investments and back-office duties, while remitting … More »

  • Markets Right Now: Stocks slip on Wall Street Associated Press - 2 hours 36 minutes ago

    The latest on developments in global financial markets (all times local): 11:55 a.m. Stocks were mostly lower on Wall Street at midday, giving up a modest gain following a generally upbeat assessment of ... … More »

  • Erdogan, Putin agree to step up aid for Syria's Aleppo
    Erdogan, Putin agree to step up aid for Syria's Aleppo AFP News - 2 hours 37 minutes ago

    Turkish President Recep Tayyip Erdogan and Russian counterpart Vladimir Putin on Friday agreed to step up efforts to ensure humanitarian aid reaches citizens in Syria's conflict-torn northern Aleppo province. In telephone talks "the two leaders... … More »

  • German Finance Ministry critical of ECB bond purchases - Spiegel Reuters - 2 hours 41 minutes ago

    The German Finance Ministry is critical of the effects the European Central Bank's asset-purchase programme is having on bond markets, magazine Der Spiegel reported on Friday, citing an internal draft from the ministry. The ECB is buying 80 billion … More »

  • U.S. jobs data to test case for rate hike
    U.S. jobs data to test case for rate hike Reuters - 2 hours 50 minutes ago

    U.S. jobs data top economic readouts from around the world next week as global markets begin to return to business as usual following a typically quiet August with the calm broken on Friday by comments from Federal Reserve Chair Janet Yellen. … More »

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.129+0.001+0.78%
    N21.SI
    1.855-0.040-2.11%
    MC0.SI
    2.84+0.02+0.71%
    C52.SI
    4.22-0.05-1.17%
    Z74.SI
    0.58-0.01-1.69%
    5TP.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.29+0.08+38.10%
    5VI.SI
    0.36+0.07+22.03%
    BPF.SI
    0.192+0.030+18.52%
    AYD.SI
    0.27+0.04+17.39%
    BLU.SI
    0.40+0.05+14.29%
    BFK.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.205-0.055-21.15%
    BTJ.SI
    0.34-0.06-15.00%
    BCD.SI
    0.39-0.06-13.33%
    AYB.SI
    0.31-0.04-11.43%
    5VP.SI
    0.24-0.02-9.43%
    BAZ.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3586+0.0055+0.41%
    USDSGD=X
    1.5217-0.005-0.33%
    EURSGD=X
    1.7846+0.0003+0.02%
    GBPSGD=X
    74.9340+0.689+0.93%
    SGDJPY=X
    5.7072-0.021-0.37%
    SGDHKD=X
    2.9614-0.0026-0.09%
    SGDMYR=X
    9,759.4238-59.1611-0.60%
    SGDIDR=X
    4.9105-0.0098-0.20%
    SGDCNY=X
    1.0279-0.0027-0.26%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,324.40-0.20-0.02%
    GCZ16.CMX
    18.59+0.10+0.55%
    SIU16.CMX
    94.87-1.64-1.70%
    ^XAU
    2.080.000.00%
    HGU16.CMX
    47.60+0.27+0.57%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.23+0.07
    ^FVX
    1.62+0.05
    ^TNX
    2.29+0.02
    ^TYX