Net worth

I Built A 6-Figure Net Worth By 25 With A Savings Advice From My Parents

  • Growing up, my parents always saved me 50% of all the money I got.
  • I didn’t like it at the time, but the advice stuck: save a little each time.
  • Thanks to my parents’ advice, I’ve saved over $35,000 in cash and have a six-figure net worth.

Saving money isn’t always easy. But putting funds away on a regular basis is essential for a stable financial future.

Fortunately, I learned this lesson very early from my parents. Even though I was not a fan of the advice when I was a kid, it helped me build a stable financial situation.

My parents saved me 50% of everything I received

My parents started teaching me to save when I was very young.

As an incredibly lucky child, I often received money as gifts on my birthday or around Christmas. My parents took this opportunity to teach me the importance of saving money, even if you don’t want to.

They taught this lesson by asking me to put half the money I received in a savings account. At each birthday, I added up my presents. And my parents drove me to the bank to put half of it in my own savings account.

Basically, the lesson that’s been stuck in my head since I was 5 years old is to save money. No matter where I got the money, half of it always went into a savings account until the day I turned 18.

Their advice: Save every time you receive money, even if you don’t want it

Saving money is fine in theory. But in reality, saving money means giving up the option of buying something. So at first I was excited about the idea of ​​saving money. But around the age of about 10, I wasn’t always happy with the arrangement.

Since I was not allowed to spend my childhood savings until I was 18, I often tried to negotiate a reprieve from the 50% savings rate. After all, I had toys and games I wanted to buy along the way.

But my parents helped me stick to a savings plan. Without fail, we went to the bank to deposit half of the money I received when I was a child.

How I save as an adult

Throughout my childhood, I got used to the idea that saving should be a priority. Although it took me a while to get started, I am grateful to my parents for helping me get into the habit of saving.

By the time I left home, saving part of my income was something deeply ingrained in my way of thinking. So I carried this idea into my adult financial life. Although I have not always been able to save 50% of my income, I have always made sure to make saving a priority.

Along the way, I’ve always made the effort to save at least some of my paycheck or freelance income. But without the early advice I received from my parents, I’m not sure savings would be such a priority in my budget.

My savings strategy is working so far

My savings strategy of saving something every payday has opened the door to a bright financial future for me.

Here are a few things my savings mindset has helped me accomplish:

  • My first financial priority when I graduated from college was to build a strong emergency fund. And with my savings habits in place, I was able to build up an emergency fund of $35,000.
  • The next goal was to buy a house. In 2020, my husband and I were able to buy our first home with a 20% down payment.
  • We had built a six-figure net worth by the time I was 25 and my husband was 31. This was possible by transferring part of our savings into an investment portfolio with a long-term perspective.

At some point, I realized that if I wanted to save more, I would have to earn more. So I focused on building a new career as a freelance writer. Although it took time and diligent budgeting, we are now able to save 50% of our income.

I can honestly say that reaching these savings goals would be impossible without the solid saving habit I started developing as a kid. Without my parents guiding me to prioritize saving, my financial life could be completely different.