https://www.thecut.com/2019/10/tori-dunlap-saved-usd100-000-in-3-years.html
She is a recent college graduate in Seattle with jobs paying $55,000 to $80,000 per year. However, she had no student loan debt.
Good for her! I feel like my oldest DD (recent grad, no student loans) could do something similar once she gets up to full time. She’s working for a start up that’s still part time, but they hope to have her at full time by year end. If that happens, she knows she can live on about $1000/month so the plan is to continue that lifestyle and make it a game to see how much she can put away.
I think it’s wonderful. Good for her! One does need to make sufficient income to save that amount to do so as a first step. Many kids do not even make that amount at their first jobs
Let me see…she started off her plan of saving 100K in three years while making 55K, being unemployed with zero income for three months, ending up at 77K three years later (with a bit of side income), and says her savings rate is 27% of her income.
Sounds like her math is off, or she left out some pertinent details to make the story sound better. Or perhaps I misread this, or the writer of the article mangled some facts, because the math isn’t even close.
There could also have been investment gains.
But the principle is Dave Ramsey, all the way.
Some folks make a lot more in their side job than their main job, but it’s always nice to see folks who are able to save and meet financial goals.
My youngest has a college classmate whose family is local to us. The family is in dire straits financially— the young man was in pretty much full financial aid. He rarely came back home due to expenses and only one parent attended graduation.
His best job offer was $40k a year with reimbursement of physical moving expenses. His alternative was to move back home and find whatever work available until something more of a career job opened up. He literally could not afford the start up costs of relocation.
And no wonder. My son started a position in a whole new-to-him city, far away from us. He was able to do so because we staked him. Helped him buy a car and get insurance for it. Brother and I rode out there with full load, helped him find an apartment, advised him on things, paid for that week it took to get him settled. He also had money saved from last summer’s work because we covered most of his expenses.
I’m proud of him right now because he’s sticking to a budget. Doing all of the right things. Saving, being frugal, etc etc. But he has had a lot of help in this regard
She actually did it in 2 years, but she lives alone and pays $1450/month in rent…and was unemployed for 12.5% of those 2 years. Something doesn’t add up.
As someone who spent his 20s making $20 - 23,000 a year in a major city, what is “saving”?
I still don’t make that much. Sigh. Nor do my kids.
The title is,”I saved $100,000 in 3 Years”. If much of that is from investment gains, that is pertinent to the story, and would dispute the claim of saving.
I think it is wonderful for young people to have savings goals, particularly if they first pay off all debt.
However, this is a gimmick. She is a financial coach. You can click on her link, sign up, and she will work with you to make it happen for you too. This isn’t some random person who just met her goals and happened to have an article written about her. This is a business solicitation.
Yes.
She says only $12000 is in savings (emergency fund) and the rest is invested. There could also be corporate matching in addition to the gains.
Oh my gosh, the closer I read, the more BS I see. As @GKUnion brought up, the article says she beat her three year goal by a year…while being unemployed for three months. She did it with 1 year and 9 months of salary.
She doesn’t waste money on things that are unimportant to her, like coffee, makeup and clothes, but prioritizes the things that are important to her, like eating out, nesting, and travel. You know, giving up the expensive things and focusing on the cheap ones. ?
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I do agree with others that the math doesn’t add to. At all.
My D could legitimately do this and likely will as she plans on living at home for 2-3 years, high salary, low cost of living city, and will have a full paid off car with low mileage that she got new as a high school grad present, has no debt, and is very frugal. She spent all of $1k this past summer living at home and banked the rest in retirement and investment accounts. It’s hard to do if not in a similar situation.
Interesting. I am having my daughter when she graduates have a sit down with our broker to come up with a wealth management plan. He has some ideas but of course hard to accomplish putting away 20% of income when your just starting out. But I think it’s also habitual. Put away anything you can and build on that but do it “every” month. She won’t be able to do what we have done and we never had these lessons when we were young.
My son ( yes, I’m proud of his efforts) is on target to save a nice % of income through Employer matched 401k, and careful budgeting. He had a nice head start in that he did not have to spend much of his saved money in that we, his parents, his siblings, his uncles, his cousins contributed to his launch. Friends in the area where he lives, donated all kinds of household goods, so that reduced that expense. No Starbucks addiction, packing lunch (yes!) most days, looking for free activities, not shopping unless necessary.
But he ain’t gonna get to $100k in 3 years unless he gets a huge raise in pay since he isn’t playing the lottery. You gotta make it to save it.
Shame on the writer for this lazy article that explains nothing. All while the recipient gets free publicity for their side gig. Which is actually where she probably makes the money that she saves.
I sometimes read money diaries (does anyone else). It always amazes me that these young kids talk about all the money they are saving and what they aren’t spending money on.
Many don’t pay for their phones (thanks, mom and dad!), Don’t pay for Netflix or Prime. Have boyfriends or dates who pay for nights out. Look at me! Look how much I’m saving! I’m so responsible!
I have a kid who makes good money and saves a fair amount. But she has more than rent. There’s car insurance and gas. Rent, utilities, food. Health insurance, Netflix, phone. Not a lot of extra expenses, paid off car, takes lunch to work. Puts a lot away in a Roth 401k, which has a great employer match and great health insurance. But no way in heck can she save more than 1/2 of her gross income, which somehow seems that this girl says she’s doing.
ANY savings is good. Not going to knock it.
I don’t knock the savings. But the article doesn’t address important situations
And, yeah, I’m still paying cell phone. Net flix and such, he gets for free. I’ve sent packages, visited as have his siblings.
I’m aware my kids have a lot of support that many do not have.