How To Plan Today For A Six-Figure Savings Goal

According to a recent survey by GOBankingRates, only 14% of American adults have $100K saved for their retirement and an estimated 78% have saved less than $50,000 for their retirement. Saving six-figures may seem like an ambitious goal, however, there are methods to make it entirely achievable. 

Saving requires more than wishful thinking – it calls for actionable steps guided by expert advice and proven strategies. By setting clear goals, optimizing your budget, and leveraging smart savings techniques, you can turn this aspiration into reality. This guide outlines practical tips to help you plan effectively and start building your six-figure savings today. 

Even if you do not plan on saving over six-figures, any sort of savings goal should be clearly defined and measurable so that you can track how you are able to achieve it. In order to set a realistic goal for yourself too, it is important to visualize your spending habits. 

Apps such as Mint, YNAB, or PocketGuard can help you see how much you are spending and gives you the opportunity to optimize your spending habits. 

While not all financial scenarios are created equal, putting a savings plan in place regardless of income amount is one of the main ways to get on track for your six-figure savings plan. When money is saved, this then gives you the cashflow to start flushing into investment and high yield savings accounts to grow your existing money. 

Sarah Sharkey built a six-figure net worth by the age of 25, and she credits a large part of it to her parents for teaching her to save with every paycheck she receives. With every salary or freelance income she receives, she makes sure to always save a portion of it even if it is a small amount, according to Business Insider. By getting into this money habit, it will become second nature so you will not skip out on saving.  

Haley Sacks, also known as Mrs. Dow Jones, is a financial influencer and entrepreneur who believes in making wealth accessible for all. She believes that high yield savings accounts (HYSA) are a better alternative to normal savings accounts for building out emergency funds and meeting short-term savings goals early. This is due to a higher savings rate, which can be as high as 4-5%. 

According to Fidelity, investing a portion of your savings and diversifying these investments such as domestic stocks, international stocks, bonds and short-term investments will also help to grow your money over time. By not having all your savings in one place, it minimizes the risk of losing all your funds in the event of a market crash.  

If time allows and you are not overwhelmed with other endeavors, starting a side hustle, freelancing, or upskilling yourself can help to create a secondary income stream perfect for adding directly to your savings accounts. According to Forbes, side businesses can also be a great way to test out your entrepreneurial skills before launching a full-blown company. 

Passive income options like rental properties, stock dividends, or peer-to-peer lending may prove to be great avenues too because they are completely customizable to fit your skills, needs, and time availability.   

Depending on your financial scenario and the different life milestones that can arise, income streams and spending habits have the potential of changing over time. For instance, having a baby, going back to school or buying a home can all impact your savings plans. By committing to regular check-ins and making necessary adjustments you’ll be able to continue to meet your goals and keep financially stable.