Yahoo Finance TikTok’s Humphrey Yang: How To Go From Zero To $100K in 2024
With over 3 million followers on TikTok, Humphrey Yang has gained a reputation as a personal finance guru for Millennials and Gen Z. His candid videos tackle investing, side hustles and money tips– all delivered in an engaging format tailored to young viewers.
In a recent YouTube video, Yang outlined an ambitious goal — going from zero dollars to $100,000 saved in one year. On the surface this seems implausible, but Yang broke it down into practical, actionable steps.
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“It’s all about saving, being smart with your money and earning more money all in tandem,” explained Yang.
Here’s Yang’s methodology broken down into digestible steps that just may make this savings quest attainable.
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Know Your Money Goal
Yang started by reframing the big hairy goal of $100,000 into a more tangible daily target — $384 on average per weekday. “This would be my target; I want to make between $380 to $400 every single working day,” he said.
He then translated that into a rate of $48 per hour if working 40 hours per week. Having a precise monetary benchmark makes the end goal less abstract and more achievable.
Become Irreplaceable
According to Yang, the path to boosting your income starts with identifying your superpower. Take an inventory of your specialized skills, talents and areas of expertise. Figure out what makes you stand out and how to monetize it.
Yang used basketball phenom Steph Curry as an extreme example. Curry’s magical three-point shooting abilities are completely unmatched, making him impossible for the Warriors to replace. That gives him tremendous leverage during contract negotiations, made evident by his $215 million deal.
You likely don’t have ultra-rare skills like Steph, but you can almost certainly find a niche where you provide a unique value. For Yang, that includes gaming companies, e-commerce, personal finance and social media. Determine the best opportunities to generate money from your differentiated skills and knowledge, whether through consulting, affiliate marketing, online courses or something else that’s marketable.
Build In-Demand Skills
What should you do if you don’t feel confident in your unique expertise? Yang suggested dedicating time towards building a specialized skill that drives high income. Areas like coding, graphic design and copywriting require dedication to master but can command over $50 per hour freelancing. Begin by taking available online classes, and then practice those skills by providing services for cheap or free to build a portfolio. As you improve, gradually increase rates while expanding your suite of service offerings.
Use Your Existing Service Skills
Not keen to pick up an entirely unfamiliar skill? Yang proposed using a skill you’re already familiar with to provide local services, like dog walking, house cleaning or landscaping. You’ll gain small business experience and earn additional income. Start small serving neighborhood customers, encourage referrals and reviews, then hire help to expand once your schedule is full.
Become a Master of Frugality
According to Yang, when you’re working towards an ambitious money goal like $100,000, it’s absolutely mandatory to limit your expenses carefully. He practices reasonable frugality day-to-day, saving money where possible without depriving himself of reasonable enjoyments.
Yang does this by using McDonald’s mobile app daily deals for cheap coffee, comparing rates for transportation, and skipping sides and drinks when he gets takeout. These minor lifestyle tweaks save dollars here and there and really compound substantially over the long haul. Whenever you make a purchase decision, always be highly intentional about differentiating wants from needs.
Automate Savings and Investing
Yang emphasized that earning more income is only half the equation. To build wealth, he said it’s equally critical to consistently save a portion of that income. Yang recommended automatically funneling a part of each paycheck towards retirement investing, an emergency fund, college savings or other financial goals. When you’re building toward a savings target like $100,000, seeing that your account balance is steadily growing will provide invaluable positive reinforcement you’re on the right track.
The road to amassing $100,000 in a year does sets the bar extremely high, but Yang laid out an approach that may just inch that goal into the realm of possibility. If you maximize your income by leveraging your existing skills and learning new ones, minimize unnecessary costs, and save religiously, you can steadily ramp up your earnings and accumulate wealth over time. Even if you’re not setting such a lofty goal, you may want to adopt a more intentional approach to personal finances. You can still benefit from these tips. With extreme focus and perseverance, building your wealth incrementally — even from zero — may not be as unfathomable as it initially seems.
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This article originally appeared on GOBankingRates.com: TikTok’s Humphrey Yang: How To Go From Zero To $100K in 2024
