Yahoo Finance I Saved $20,000 in Less Than a Year: Here’s My Monthly Budget
Mark C., a healthcare worker in North Hollywood, and his husband set an ambitious goal: Save $20,000 in less than a year. They’re childfree now but want to start a family soon.
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“We knew we needed a big chunk of change before having kids,” Mark said. “It wasn’t easy, but we made it happen.”
Here’s a look at how they got it done.
Getting on the Same Page
Mark and his husband, both in their early 30s, realized they needed to think about their finances in a new way. Before, they were paying rent, buying food and setting some aside for savings — but it wasn’t calculated.
“When we actually sat down to figure out where the heck our money was going, it was a little embarrassing,” Mark shared. “We realized we were spending money in kind of wild ways — way too many Switch games!”
With an understanding of their finances, the two sat down and created a budget with the goal of saving $20,000 in a year.
They made a pact to stick to their new budget no matter what. Both had to be fully committed for this to work.
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Monthly Income
Mark works full time as a nurse, while his husband has a job working as a manager at a local grocery chain. Their combined take-home pay is about $7,500 per month.
“We’re lucky to have good jobs,” Mark said. “But living in L.A. isn’t cheap, and we like to go out.”
Housing: $2,200
They rent a decently-sized one-bedroom apartment in North Hollywood. Living a little outside of the city center saves them money, but they don’t want to sacrifice by moving further out or into a smaller space.
“We thought about moving somewhere cheaper,” Mark said. “But… we just don’t want to! We love where we live.”
Transportation: $200
They own one car outright — they bought it used — and share it. This covers gas, insurance and maintenance.
“I can actually walk to work so sharing a car isn’t a big deal,” Mark shared.
Food: $600-$800
This includes groceries and occasional meals out. They cook most meals at home and pack lunches for work.
“We got really into meal prepping,” Mark said. “I blame my YouTube addiction! But it really does save time and money, and we eat healthier too!”
Utilities: $200
This covers electricity, water, internet and their cellphone plan.
“We’re pretty careful about energy use,” Mark said. “It has to be insanely hot out for me to turn on the AC!”
Entertainment: $200-$400
They budget for streaming services, occasional movies and other fun stuff.
“We had to cut back here,” Mark admitted. “But we still do stuff, we just supplement it with free activities like hiking and the beach.”
Health Insurance: $300
Mark gets insurance through work, but they pay extra for a better plan for his husband.
“It’s expensive, but health is something we don’t want to skimp on,” he said.
Debt Payments: $600
They’re paying off some old student loans and a small credit card balance.
“We’re throwing extra money at these whenever we can,” Mark said. “The sooner they’re gone, the more we can save.”
Emergency fund: $1,000
Mark and his husband didn’t have much of an emergency fund and so they also used this year to bulk that up.
“It’s not sexy, but it’s necessary,” he said.
Savings: $1,500-$2,000
This is the big one. They’re putting away a big chunk of their income into savings.
“It’s a lot, but that’s what it took to hit our goal,” Mark explained. “We treat it like a bill that has to be paid.”
How We Cut Costs
Reaching their savings goal meant making some tough choices. Here’s what worked for them:
No More Impulse Buys
“We used to grab stuff on Amazon all the time without thinking,” Mark said. “Now we wait 24 hours before buying anything nonessential.”
Cheaper Date Nights
Instead of expensive restaurants, they started cooking fancy meals at home.
“We’ve gotten pretty good at making restaurant-quality food — or at least close,” Mark said. “It’s fun and way cheaper.”
Cutting Subscriptions
This is a common one and Mark was surprised to find that he missed something so obvious.
“I’m actually the most embarrassed about this one,” Mark shared. “I was subscribed to a recipe site and was paying $10 a month and never visiting it. Awful!”
Shopping Smarter
They started using shopping apps with coupons, buying some items in bulk, and stocking up at sales for things they always need.
“It’s kind of a fun game at this point,” Mark said. “A game where the prize is about $200 savings a month in groceries!”
Side Hustles
Both picked up some extra work to boost their income. Mark does some home nursing shifts, and his husband is a Task Rabbit.
“We decided we didn’t want to kill ourselves with extra work,” Mark shared. “So we’re not going full out, but some months are slower at my work so I can swing it.”
Staying Motivated
Saving such a big chunk of money wasn’t always easy. Here’s how they stayed on track:
Tracking Progress
They made a big chart to visualize the growth of their savings.
“Seeing that line go up kept us going,” Mark said. “It was like a game we were determined to win.”
Rewarding Milestones
They set mini-goals and celebrated when they hit them.
“Nothing big, maybe a nice dinner out,” Mark explained. “But it helped break up the grind.”
Keeping the End Goal in Mind
Whenever they felt tempted to splurge, they thought about their future family.
“Remembering why we’re doing this makes it easier to say no to stuff we don’t really need,” Mark said.
What They Learned
This intense saving experience taught them a lot about money and themselves:
They Can Live on Less
“We realized we don’t need as much stuff as we thought,” Mark said. “It’s freeing, actually.”
Teamwork Is Crucial
Both partners had to be fully committed for this to work.
“If one of us slipped up, the other would help get back on track,” Mark explained. “We’re closer because of it.”
It Gets Easier
The first few months were the hardest, but it became routine over time.
“Now saving feels normal,” Mark said. “We’ll probably keep a lot of these habits even after we reach our goal.”
Small Changes Add Up
Lots of little savings here and there made a big difference.
“It’s not about depriving yourself,” Mark said. “It’s about being smarter with your money.”
Mark and his husband proved that with dedication and teamwork, big financial goals are achievable.
“If we can do it in expensive L.A., anyone can,” Mark said. “It takes work, but it’s worth it to set ourselves up for the future we want.”
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