4min readFinance 19 July 2019
Three years ago, I made a deal with myself - I wanted to have $100,000 saved when I'm 25. But I didn't mind if it didn't happen until the day before my 26th birthday.
One of my biggest priorities in life has always been to save as much money as possible — and I owe much of that to my parents, who made sure I had a strong financial education at a young age.
My dad even helped me start a vending machine business when I was nine. The experience taught me essential skills like how to pitch a business, cope with rejection and open a checking and savings account.
For the past three years, I've never made more than $80,000. About a year ago, I reviewed my rate of savings and investments and realized that I was on track to save $100,000. With only a car loan away from being debt free, I've got another year and $10K to go!
I want to acknowledge that privilege is a key part of my story. I'm white, I come from a middle-class family, and I was able to graduate college without any debt. All these things helped a great deal.
But my parents didn't raise me with a silver spoon. Paying for college was a collaborative process. We'd sit down at least twice a year to discuss how we were going to pay for the next semester. The first question they'd always ask me was: "How much can you contribute?"
I've been fortunate. But it also takes a lot of hard work, sacrifice, and responsibility to save and maximize your earnings. Feeling motivated and knowing that I'll be prepared for whatever life throws my way fuels my drive to keep making smart financial decisions. Here's how I'm getting to $100K.
- I side-hustled
This kick-started my journey towards six-figures. In addition to saving the majority of my 9-5 salary, my first year of freelance social media marketing made me quite a bit of cash that I could immediately save. I was able to establish both a SEP IRA and a fully-funded emergency fund with my earnings.
2. I started investing early
Knowing that compound interest is so important, I wanted to start investing early to have my money work for me. Once I started my first big-girl job, I opened my first Roth IRA. Starting to save for retirement at age 22, I was able to max out my Roth each year and also contribute to aSEP IRA and a non-retirement investment account. My personal taxes are a bit of a maze, and I seem to encounter something new each year but it just comes as a new learning experience. My first job out of school had a 401(k), but you couldn't contribute until you were there at least a year. Knowing I wasn't planning on staying long — I was at that job for a year and a few months — I opened a Roth 401(k) and then rolled my earnings to my Roth IRA.
3. I negotiated salary offers and raises
Negotiating should be a collaboration, not a confrontation. Growing up, I watched my father sit on hold, patiently waiting to negotiate our cable and phone bills. Negotiation was always part of my life, and I grew up with parents who knew how to do it. So when I was offered my first social media freelance gig, I negotiated over $10k more than they offered. And after achieving a 20% bump at my first 9-5, I negotiated $20k more than what was offered at my next job. And $10k more at the next job. If negotiating for raises freaks you out, here's a guide that can help.
4. I've automated my savings
Automating your money not only makes your life easier, but it makes you feel like the percentage you're saving just doesn't exist. I have 26% of each paycheck automatically deposited into a high-yield savings account. This savings account is purposefully at a different bank than my day-to-day checking account, so I'm less likely to withdraw from it and less likely to think about it. This "set it and forget it" level of financial freedom was something I worked hard for -- through money diarying, budgeting, and conscious spending. So now, my savings amount is completely on autopilot.
At the age of 24, I know that I am on the right track to make my goal a reality. Inspired by my own journey, I wanted to help women everywhere to have that same feeling of confidence that financial education gives — and get information from someone who isn't an old, rich white dude. As a money speaker and coach, I run Her First $100K, a financial literacy platform for millennial women on the path to get their first $100K too.
It's possible to achieve your first $100K — whether that's debt paid off, earned, saved, invested, or something else. With intentional strategies and focus, you've got this!
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She walks into a room ready for her presentation. She wants to land this new client and has worked weeks on it. She heads to the 35th floor of the tallest building on the block knowing she has documentation that is sure to impress. The conference room has a 20-foot long table surrounded by executives in blue suits, button-down shirts, pencil skirts, and blazers.
At this point, she realizes she didn't take into consideration the other important component of her presentation... she is not dressed appropriately.
Is it true that there is power in clothing? Can an incredible outfit increase your confidence and add validity to your brand? Will you perform your job better or feel more empowered? Will first impressions of you be more positive?
For me, the answer is a resounding yes. I believe that clothing can greatly impact first impressions and make a lasting impact on anyone you interact with. Like it or not, people will judge you on how you look and they will make both conscious and subconscious decisions about you based on what you're wearing… Is she trustworthy? Is she the expert we need? Will she fit in our corporate culture?
Can an incredible outfit increase your confidence and add validity to your brand? Will you perform your job better or feel more empowered? Will first impressions of you be more positive? For me, the answer is a resounding yes.
After all, if you were hiring a financial advisor, and one walked in with a pair of jeans and the other in a pair of trousers and blazer, who would you trust with your money? Even if you don't realize what you're doing when you interact with people, there may be more going on beneath the surface. It's something to think about for sure.
Here's another example, let's say you want to hire a party planner for an event. You meet with the first candidate, and she is wearing a wrinkled shirt and her fingernails are chipping and half-painted. Whereas candidate number two walks in and has on a pencil skirt, pumps, and silk blouse. Who do you think would pay more attention to the details associated with your party?
In 2019, WWD wrote about the psychological effects clothing has on a person:
It is said that clothing is what makes and defines a person. What you wear tells others what you are and makes a statement about your taste, character and individuality. It gives an insight into your nature, whether you are casual or formal, playful or serious, cool or just composed. Whether you are attending a job interview, out on a date or just strutting by the beach, your apparel tells us so much about you at a simple glance.
We know that it takes 5-7 seconds for a person to subconsciously form an opinion about you. Our eyes take in how you look; after all, what you're wearing will influence how you are perceived. How do you want to be perceived to your audience, your clients, and in your working industry?
How do you want to be perceived to your audience, your clients, and in your working industry?
And it goes way beyond the external. There is scientific data that shows how an individual feels differently when dressed in a variety of styles. In an article from Research Gate, they found that, "Fashion choices can affect both self-image, the impression that you convey to others and in turn, the way in which people behave towards you."
Have you ever heard of the term "enclothed cognition"? It refers to the phenomenon in which people tend to adopt the traits and properties they associate with the clothes they wear. In a study on the psychology of clothing, that same article as above reports that, "Participants judged women to be more forceful in job interviews and were more likely to recommend them for hiring when they were dressed in a more masculine style compared with a more feminine style," and that "Both men and women are attracted to stylish clothing that fits them well, makes them feel well-dressed and looks current."
On some level, we may all agree with that statement.
Naturally, as a personal stylist, I am a true believer in the power of clothes. I have seen my clients' exhilaration as they take in their transformation, brought about by an outfit, a new style, and clothes that look incredible on them. I have also witnessed physical changes like their facial expressions, huge smiles, laughter, sparkling eyes, and even a change in the way they walk. It's almost like there has been a shift in attitude toward their inner beauty, which has increased because they feel and look amazing and confident.
Although most of us are no longer strutting our way to the boardroom, the psycholigcal power of clothing is still necessary and relevant, especially now that we're confined to our home offices. Most of us are on virtual calls or live streaming from our computer, and it's easy to not prep as much for your "waist-up" meetings. But, like it or not, you should look on-brand, and put together clothes that are relevant for your industry. Not only will your peers perceieve you as more professional and more put-together, but I am sure you will also feel better, be more alert, and have more energy.
Most of us are on virtual calls or live streaming from our computer, and it's easy to not prep as much for your "waist-up" meetings. But, like it or not, you should look on-brand, and put together clothes that are relevant for your industry.
I'm not saying you need to look like a superstar every second of every day. However, I want you to think about the positive impact well-fitting, stylish clothes can have on both others' perceptions of you as well as your inner-confidence and intrinsic behavior.