As you’re reading this blog, we are assuming that you are below 16, and curious to know how you can own 100k dollars in your savings account when you reach twenty-one or when you come out of the college. To tell you frankly, it’s not impossible to achieve that feat, however, it’s as tough as it is to turn down a feast when you are hungry.
Adolescence is the best age to start saving. It helps in developing a life-long and very compelling habit of conserving your hard-earned money in every possible manner. Also, when your savings reach the triumphant figure of, say, $100,000, it gives you the confidence of turning into an investor from a mere saver. That’s all a conservative approach to save money is all about!
So, how can you turn your dream of owning 100k in your savings even before you take up a permanent job? Nihar Suthar, a 21 years old consultant at the firm Roland Berger in Boston, achieved this feat before entering his job. His ‘conservative’ idea of saving has proved successful, at least for him. Taking inspiration from his journey of saving his first 100k, we are providing you 5 ‘conservative’ ways to save your first $100,000 before you turn twenty-one.
Here are the tips:
- Start Early: “Putting away as much money as you can from an early age takes patience to grow a portfolio, but over time, the more you save, the more it grows”, says Nihar Suthar. He’s putting it right! The strongest financial force in the market is the compound interest and the most important variable in any future value calculation is time. So, if you start today and invest a certain amount every year, the compounded value of the amount you’ll receive will be way higher than what you’ll get after starting off late.
- Save Most of Your Income: We are not advising to save every penny of your planned expenditure, but whatever comes as a bonus must be saved for the greater benefit. A greater part of your cash stockpiling from the odd jobs at school or from various internships at college and even gift money from your dad or from winning a competition needs to go to your savings fund. You can save the remaining parts for fun.
- Cut the Cost Wherever Possible: It’s also advisable to cut your cost of living wherever possible. Avoid eating outside and make your food at home, stay away from unnecessary gadget and cut your partying expense, especially the drinking costs. Grownups that are also single are likely to save more on these fronts (certainly, we are not advising you to stay single, but you can still save on these fronts when in a relationship). Staying disciplined in every front of your expenses can save you a lot of cash to help in your first dream saving.
- Find an Investment Destination: Whatever savings you accumulate will multiply only through investment. Invest your money in bonds, equities, as well as ETFs and gold. One best way here is to invest 60% in bonds that are more secure, and 40% in gold and ETFs. If you can’t open these investment accounts in your name, you can simply hand over your money to your mom or dad or someone you can trust to invest in their accounts. Maintain a ledger for your entire invested amount, their duration, their rate, and their yielding date.
- Start Earning Before You Get a Job: Money won’t grow in a tree in your backyard. With only the extra incomes, you won’t be able to save a huge amount like $100,000. Earn from whatever sources you may find suitable. Get a part-time job at some hotel or restaurant, mall or gas pump, or simply provide your physical labor as a help to people in exchange of some bucks. Also, saving at an adolescent age will help develop a Warren Buffet kind of investor mindset for you.
so, these are the ways you can help yourself to save your first 100k dollars in savings.