Are you looking to save money to travel the world, pay for a wedding, or to attend University?
Shortly after I started working at my first job after finishing my undergraduate degree, I decided that I wanted to go to Business School. I also got engaged at the same time and it got me thinking about my financial situation. I was earning an entry-level salary at a corporate office, but I wasn’t saving any of my money or really thinking about my future.
[clickToTweet tweet=”‘It’s not your salary that makes you rich, it’s your spending habits.’ – Charles A. Jeffe” quote=”‘It’s not your salary that makes you rich, it’s your spending habits.’ – Charles A. Jeffe”]
I knew that I needed to make a change and decided to make Business School my main priority. I started my graduate studies part-time while I continued to work on a full-time basis. However, room for advancement in the company I was working at was limited, and I decided that I wanted to accelerate my education by finishing my MBA sooner.
I got serious about saving money and made a plan which allowed me to quit my job, pay for the remainder of my school tuition and travel.
The first step was to determine how much money I needed and then to create a realistic budget for myself. $35,000 might not seem like a lot of money to save in under two years, but keep in mind that I was making an entry-level salary and paying for my tuition part time. I was also relying on a single source of income and not doing any side hustles to make extra money.
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Many people have asked to see a break down of my exact monthly budget, income, and school tuition. This post is already 2,500+ words and I did not feel that it was helpful to include my personal budget in this post. My income at the time was $39,000 annually. I tried to keep my monthly expenses as low as possible in order to help me save money for school. This post is meant to share the financial habits that I practiced. As a side note, I am a homebody and I live a relatively modest lifestyle. Even though I enjoy fancy things, I don’t go shopping for fun (only if I need something), I don’t own the latest gadgets or tech gear, and I rarely eat out. I hope these tips will help you in saving money for your goals!
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Here’s how I saved $35,000 in less than two years on an entry-level salary:
Table of Contents
1. I paid myself first
Yes, you may have seen this phrase in many personal finance books and blogs before, and it’s for good reason. This is one of the most effective and easiest ways to start saving money. You simply pay yourself first.
I opened up a savings account and automatically deposited a portion of my paycheck into this account for each pay period. Since it was automatic, I wasn’t tempted to spend the money before transferring it to my savings account.
Instead it was automatically done for me, and it guaranteed that I saved a portion of my pay cheque each month. I also made a promise to myself that I would not touch any of the money in my savings account unless it was for graduate school.
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2. I found ways to trim down my monthly bills
I reviewed all my monthly expenses to understand where my money was actually going. Once everything was clear and organized, I was able to determine where I could adjust my spending.
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Instead of paying for a monthly gym membership, I started buying workout DVDs instead. Now I’m a big fan of exercising to workout videos. It’s like being in a fitness class and having your own personal trainer at the same time. Here are a few inexpensive workout DVDs I recommend buying:
I also noticed that my cell phone contract was coming to an end, and I wanted to upgrade my phone, but I didn’t want to get stuck on another 2-year term. Instead, I bought an unlocked phone (on sale) and switched to a pay-as-you-go plan. Now I only pay $7.50 per month for my smartphone. This worked well for my needs and it saved me a lot of money in the long run.
3. I discovered affordable ways to have fun on the weekends
In the past, my weekends consisted of trying a new restaurant or bar, shopping and spending money on non-essentials. I look back on my spending habits and cringe at how much I use to blow on silly things.
Instead of going out to a restaurant, I started entertaining at home. I checked out free events happening in the city. I discovered that there were plenty of affordable ways to have fun on the weekend that didn’t involve spending a lot of money.
I also like using Groupon to save money on fun activities and dining out. When I wanted to eat out, I would always check for deals on Groupon first. (I just recently used Groupon to get $30 worth of food at my favorite restaurant for only $5 — I love finding great deals like this).
Another way I like saving money is to use discounts available in the Entertainment Book. I’ve been using the Entertainment Book for the past several years to save money at restaurants, shopping, city attractions and more.
4. I taught myself how to cook
I used to enjoy eating out ALL THE TIME and trying new restaurants that opened up near my office. I didn’t know how to cook, so I liked the convenience of grabbing something to go instead of packing my own lunch for work.
However, this habit was costing me $5-10 a day, not to mention how much I was spending eating out on the weekends too. It was eating up a large chunk of my monthly budget, no pun intended. If I wanted to attend graduate school full-time, I couldn’t afford to continue eating out every day.
I started borrowing cookbooks from the library and taught myself how to make my favourite meals. It wasn’t easy at first (or fun) because I was a terrible cook. But with more practice, I got better, and now I love to cook. It’s a creative outlet for me and I enjoy making new dishes for my family.
Some of my favourite cookbooks are:
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5. I brought my own tea and snacks to work
My office was located near several cafes, which made it tempting to grab a tea and pastry on my way to work each morning. It was so tempting in fact, that I used to frequent these cafes a few times a week.
$2-5 each day on coffee or tea didn’t seem like much, but over the month it became noticeable with my salary. Every penny counted, so I needed to cut back on my visits to Starbucks.
Instead, I started to bring my own tea and snacks to work. I also made an unwritten rule where I could go to Starbucks once a week (usually on Fridays) as a special treat to myself. This small change added up to big savings for me.
Related: 17 easy ways to save money at Starbucks
6. I became a smart shopper
Remember how I said that I use to spend my money on frivolous things? Well, I needed to break that bad habit in order to help me save money. Whenever I needed to buy something, I started shopping on Ebates so I would earn cashback on all my purchases.
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Here are some other ways I became a smart shopper:
- I bought things I needed only when they were on sale
Before buying anything, I always asked myself if I really needed it. This helped me to separate my wants from my needs. I checked flyers to find out what was on sale that week and made a list so I could shop with a plan. - I stopped experimenting with beauty products
In the past, I used to enjoy trying new beauty products such as face masks, makeup and nail polish. However, I didn’t end up liking every new product I would buy, and it was a waste of money. Instead of experimenting with new beauty products, I stuck to products that were tried and true, and ones that worked for me. - I stopped buying dry-clean only clothing
I worked in a corporate office, which meant I needed to wear professional clothing. However, a lot of professional clothing is dry-clean only, and this can get expensive over time. Also, I don’t like the chemicals used in dry cleaning, so I avoided buying any new clothing that required dry cleaning. - When buying new clothing, I stuck to neutral colors
Buying neutral colours (black, grey, white, beige, etc.) allowed me to mix and match outfits more easily. Also, I could get away with wearing the same black dress or blazer each week without anyone really knowing. This however, would have been harder to do if it were a red dress for example. - I bought multiples of toiletries when they were on sale
When my favourite face wash or body lotion went on sale, I stocked up. I created a small stock pile of items that I frequently used. This prevented me from having to buy items at full price if I ran out of them before they went on sale again.
7. I switched up my banking
For the longest time, I was only putting my money in one place – a single chequing account at my bank. I didn’t have a credit card, I didn’t think I had enough money to open up a savings account, or invest it in a TFSA (tax free savings account).
It wasn’t until I started learning more about my banking options that I decided to open up a high-interest savings account and start investing in a TFSA. At this time, I also signed up for my first credit card, which I used to pay for my school tuition (since I was attending graduate school on a part-time basis).
I watched my savings, investments and reward points on my credit card grow which was exciting! I regret not exploring my banking options sooner.
8. I changed my priorities
In the past, I use to save up my money to buy designer shoes and splurge on fine dining. There was nothing wrong with that, but if I was serious about saving enough money to pay for graduate school, I needed to change my financial priorities.
Since I was only making an entry-level postgraduate salary, I couldn’t afford to continue my current spending habits if I wanted to pursue higher education.
In other words — I couldn’t have it all — and that’s something I needed to understand.
We are constantly seeing others portray these glamorous lifestyles on social media, which are unrealistic and can result in high amounts of debt to sustain this rich appearance.
I know it’s easy to get caught up in that thinking and feel like you deserve to have it all too. But if you want to build wealth, you can’t have your cake and eat it too. You have to make compromises, and that’s exactly what I needed to do.
9. I stopped trying to keep up with Joneses
I’ll admit that I was never really one to keep up with the Joneses. However, I enjoyed reading fashion magazine and would lust after designer shoes or purses that were advertised.
My mind would trick itself into thinking that I needed those items in order to be happy. Eventually I realized that this spending habit was not healthy, and I needed to stop keeping up with the Joneses if I wanted to reach my financial goals.
10. I stayed focused and set a time frame for my goals
Even though this point is last on the list, setting a time frame for my goals was pertinent to my success. If I told myself that I wanted to save $35,000 eventually, it would have taken a lot longer since it’s easy to get side tracked when you don’t have a specific time frame.
Also, each time I felt tempted to spend money on non-essentials, I would ask myself if this purchase would get me closer to my goals. If the answer was no, then I wouldn’t buy the item. This self-discipline took A LOT of practice and was something that I got better at doing over time.
Trust me on this one, nothing worth doing is ever easy. Believing that you can is the first step.
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This was a great read! Thank-you so much for sharing this! I am so happy and proud of you for being able to save $35,000 in such a short period of time! I had a conversation last night with a friend about my existing undergraduate student loans and how I need to be more aggressive with paying them off. Reading this now has given me the motivation I truly needed! This will be my year to eliminate my student loan debt! Thank-you again!
Thanks for reading Amanda, it sounds like you’re on the right track. Wishing you all the best! 🙂
Awesome job! I’m switching my focus next year to start building my savings and these are great tips.
Inspiring,,, goal: 35,000 in 2 years!!!! let’s do this
Excellent tips. Small savings here and there can definitely add up overtime. I started bringing lunch to works twice a week instead of never and that alone helped me offset a $60 increase in my rent and allowed me to keep my saving and investing goals unchanged.
I know some people have a hard time giving up their morning coffee from a cafe, but I find every little bit of savings helps. I used to treat myself once a week to a drink at my favorite cafe and make my own tea on the other days of the week 🙂
Hi Eden, great advice! I was wondering if you’d mind sharing a range for your entry level salary. I know that is sooo taboo to ask, but I read a lot of posts like this and often feel discouraged when I find out that a person didn’t have undergrad loans, or was living at home. I’d like to save half of what you did by December 2017 and it seems reachable sometimes, but I’m on an entry level journalist budget, which is much lower than say and entry level engineering budget. If you’d be willing to share that number/range I’d really appreciate it!
Thanks for the tips you did share!
Hi Brittany, thanks for reading and reaching out! I worked for 3 years full-time while going to graduate school part-time. I was making between $35,000-$40,0000 per year at my job. I hope that helps 🙂
To me 35,000 is A LOT to save in a few years especially on an entry level salary. That’s amazing Eden! You have some really good tips here. My focus this year has been saving money for traveling so this came at the right time for me haha. I just had a talk with myself the other day about really digging in to what my priorities are. Before I was also experimentating with a lot more beauty products, but I’ve cut down since then. And I agree we all sort of have this idea of ‘Keeping Up With the Jones”. 🙂
-Emily http://www.coatandcoffee.com
Yeah, it was hard for me to stop experimenting with beauty products, because I always enjoyed trying new items. But it ended up getting pretty expensive, especially if I didn’t like a product. Once I stopped I was able to save lots of money. Thanks for reading Emily 🙂
You did a great jib, saving $35k in less than two years is a great job, I don’t think I would manage to do it. I had to cut down my spending when I was saving for the MSc degree and after that for the wedding. Who wouldn’t want to spoil themselves but in order to save money and be in less debt, it was important to cut down unnecessary expenses. Cooking at home, making your own tea and shopping at sales always make you save a lot. Great tips!
Ela BellaWorld
Thanks for reading Ela! Of course we want to spoil ourselves, especially after doing something that makes us proud. Instead of treating myself to a new outfit or pair of shoes though, I found other ways to spoil myself that didn’t cost a lot of money. For example, I found a boat cruise deal in my city on Groupon for only $14. That was some of the most fun I’ve had and it didn’t cost me much.
Love this post! It’s definitely possible to save money even if you’re not on a high salary. For me it’s just a matter of priorities and sacrifices. I was fortunate that my parents allowed me to move back in with them for a while so I could save a bit more money. Although that’s not an option for everyone it’s definitely worth considering. Sure, it meant I sacrificed a bit of independence, but I also saved a significant amount of money to put towards my savings goals. It also made me closer with my parents. Thanks for sharing!
Liz | Poulet s’il vous plaît
It definitely was a matter a priorities and sacrifices for me as well. Moving back with your parents is a huge advantage. My parents live in the same city as my University, so I stayed with them since it was cheaper than paying for a dorm room. This saved me money on rent, but it was my other spending habits that really helped me save towards my goal. Thanks for reading Liz 🙂