How a Simple Savings Tip from My Parents Helped Me Hit 6-Figures by 25!

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• As a kid, my parents instilled in me the habit of saving 50% of any money I received.
• I didn’t appreciate this wisdom at the time, but it has become a cornerstone of my financial success.
• Today, thanks to that early guidance, I’ve amassed over $35,000 in savings and enjoy a six-figure net worth.

Let’s face it: saving money isn’t a walk in the park. But consistently setting aside cash is essential for a secure future.

Fortunately, I grasped this concept early in life thanks to my parents. While I didn’t always see the value of their advice as a child, it has significantly shaped my financial landscape.

My parents insisted I save 50% of everything I got

From a young age, my parents were dedicated to teaching me the value of saving money.

As a blessed child, I often found myself on the receiving end of cash gifts for birthdays and holidays. My parents seized these moments to impress upon me the importance of saving, even when I didn’t feel like it.

They implemented a rule: I had to deposit half of any money I received into a savings account. After unwrapping each birthday present, we’d head to the bank so I could deposit half into my very own savings account.

The lesson was simple yet powerful: save money, no matter the source, with half going straight to savings until I hit 18.

Their mantra: Save every time you receive money, even if it feels tough

In theory, saving money sounds great. In practice, though, it often means passing up on immediate purchases. Initially, I was all for the idea of saving. But as I hit around age 10, my enthusiasm waned.

Since I couldn’t touch my childhood savings until I turned 18, I frequently tried to negotiate a pause on the 50% saving rule. After all, I had toys and games I wanted to buy! But my parents held firm, ensuring I adhered to the savings plan. Without fail, we made those bank trips to deposit my half.

How I save as an adult

As I grew up, the notion of prioritizing savings became second nature. It took some time, but I’m grateful my parents ingrained this habit in me.

When I moved out, saving a portion of my income was already a deep-seated habit. Although I may not always save 50% of my paycheck now, I’ve made it a non-negotiable priority.

Over the years, I’ve consistently saved at least a portion of my freelance earnings. Without the early lessons from my parents, I can’t imagine that saving would have held such a pivotal place in my budget.

My savings strategy is paying off

My strategy of saving a little from each paycheck has paved the way for a bright financial future.

Here are a few milestones my savings mindset has helped me reach:

• My top priority upon graduation was to create a robust emergency fund. Thanks to my savings habit, I was able to establish a $35,000 emergency fund.
• Next on my agenda was buying a house. In 2020, my husband and I achieved that dream with a solid 20% down payment.
• By 25, I had built a six-figure net worth, and my husband, at 31. This was possible by channeling some savings into a long-term investment portfolio.

Eventually, I realized that to save more, I needed to earn more. So, I focused on building a freelance writing career. After diligent budgeting and some time, we now successfully save 50% of our income.

I can genuinely say that I wouldn’t have reached these savings milestones without the strong foundation my parents laid for me. Their influence has shaped my financial journey in ways I can hardly express.

This story was originally shared in May 2022.