How I Saved $10,000 with a [Minimum Wage] Job

Here's how I saved $10,000 on a minimum wage job ($8/hour).



Chapters

0:00 My Story
1:31 Part 1: Knowing Your Race
3:13 Part 2: Create a Plan
5:32 Part 3: My $10,000 Saving Strategies

When I was in my early 20s I worked at a minimum wage job making $8/hour and with that job I did 3 significant things:

1. Graduated College Debt Free
2. Traveled to 35 countries
3. Saved my first $10,000

I believe that anything is possible if you set your mind to it and have a plan. In this video I talk about how I saved $10,000 on my minimum wage job through 3 parts:

1. Knowing Your Race
2. Creating a Plan
3. My $10,000 Saving Strategies

Part 1: Knowing Your Race

Life is like running a marathon; however, we don't all start at the same point: some start behind while others start ahead. The first step to saving is knowing your life circumstances. There is no "one size fits all" strategy with saving because we all come from different life circumstances. You have to be realistic with saving money because if you put unrealistic expectations on yourself, you won't follow through with your goals.

You also have to know that it doesn't matter what your life circumstances are, you can still save $10,000, it might just take you a bit longer to do...but you'll eventually get there!

In addition to knowing your life circumstances, you have to "establish your why." Why do you want to save $10,000 (or just save). It is much easier to save money when you have a reason to. Maybe you want more security in your life, maybe you want to buy something, regardless of what it is you need to have a "why."

Part 2: Create a Plan

Saving is a lot easier than people think. The problem that most people have is that they don't create a plan and think that they can just blindly put money in a savings account; however, you have to create a plan in order for your savings to grow. My strategy has always worked for me and consists of 3 simple steps:

Step 1: Establish a Weekly Savings Amount

Look at your expenses and ask yourself, "How much can I save a week?" Saving on a weekly basis helps me understand goals better. Even if you are only saving $10 or $20 a week, your account will steadily grow at your own pace.

Step 2: Separate Your Money

For me, it's important to separate my money in a checking account for spending and a savings account for saving. That way I know what money is for spending and what is for saving. The checking account will fluctuate, but the savings account should only increase.

Step 3: Consistency and Patience

Most people have trouble saving money because it is extremely boring. If you're making minimum wage, it will be a very slow process, but if you are consistent and patient you will eventually get there!

Part 3: My $10,000 Saving Strategies

Here are 10 strategies I use to cut my spending, keep expenses low, and save money.

1. It's 10,000 $1 decisions, not 1 $10,000 decision

Most people want to make 1 decision to save $10,000, but the reality is that it is actually a bunch of small decisions to save money every day.

2. Take Advantage of Your Resources

We all have some resources whether it's family, friends, or coworkers. My biggest resource was living at home and it saved me about $50,000 in expenses.

3. Know the Intangible Currencies

In the following video I spoke of the currencies outside of money:    • I Lost ALL My Money [Here’s what I le...  

4. Cut All Unnecessary Spending

All you really need in life is food, water, and shelter, everything else is optional. Know the difference between a want and a need and cut out the wants from your life.

5. Save All Bonuses

When I got money like tax returns of birthday money, I would pretend like I never got this money and saved it. Bonus money is great opportunity to catch up or increase your savings quicker.

6. Use Holidays to Your Advantage

Holidays like Christmas are a great time to ask for things you actually need instead of getting a bunch of junk. When you get clothes or household items, you can save a lot of money instead of buying it yourself.

7. Choose a Good Bank

Avoid fees from banks and choose a bank that doesn't charge you anything. Even if a bank is charging you $3/month in maintenance fees, that is money that you could be saving.

8. Learn How to Get Enjoyment Out of Free Things

The best things in life are free. Instead of spending $100 on an experience, take a walk in nature because it is free.

9. Fix Things Yourself

There is a YouTube video for everything. When I was making minimum wage I learned how to fix things myself and saved a lot of money in the process...also gained a new skill!

10. Focus on the Pennies, Not the Dollars

If you take care of the pennies, the dollars will take care of you. Don't underestimate the power of saving 50 cents on an item. If you are saving pennies in every avenue of your life, you will end up saving hundreds of dollars a year.