10 Tips to Save Your First €100,000

Saving the first $100,000 is the hardest. Once you have that, mechanisms kick in so that save your money will grow rapidly. But how do you get that first huge amount together? Here are ten tips that have helped us tremendously. This article was written by Renée Lamboo on December 1, 2018. Renée Lamboo writes about her own money choices and those of others. She wrote a number of stories about money matters for Rabobank. Be inspired and take your next step towards a financially healthier life.

Reach the magic point with 10 saving tips
It's been a while since we reached that magical point.€100,000. I still remember it like it was yesterday. This sounds very dramatic, but it was quite something. For years we had had that goal in mind. €100,000 in our savings account. A ton. An amount that would change the rest of our lives and that I secretly thought would never be feasible. But when we started calculating, it turned out to be possible. Two incomes, not too high fixed costs. And above all, a lot of motivation to achieve that goal. The latter was the main reason it worked. We both wanted it to work and saw the impact it could have on our lives. We could use it for a house to buy and therefore never have fixed costs again. We never had to borrow money again when life was against us. We could use the investment and the proceeds to (partly) live on.

In the end, it took us about four years. From the moment we decided: this is what we're going for, to the point that it was really on our bill. Raising the first $100,000 is the hardest, they say. After that, the money will work for you, as they call it. Especially when you get a little return on it. That return is not so good on a savings account, but you can also invest with it, for example. Note to self: only if you don't need the money now and in the near future, of course. Not only do you generally achieve a better return, but by not withdrawing your income but investing it again, the yield suddenly starts to grow very fast. They call it the eighth wonder of the world. Return on return. Do you understand?

1. Get around the table and make a mood board

Yes, gentlemen among us, you heard it right. And no, that's not boring. A mood board. This is really step one on the way to that $100,000. In the middle of the paper you chalk that target amount with a thick marker, around it you write words and paste pictures that you associate with achieving this goal. Whatever it is. Visualize it. Go see it literally in front of you. And hang the result of your crafting in the house. In a place where you at least see it every day. Do this together, if you have a partner. Even if you think making a mood board is boring. I promise it will help you.

2. Stop finding money complicated

Many people find everything that has to do with money difficult and complicated. So they quit. Money is simply part of life. It's just a matter of addition and subtraction. Okay, and sometimes a little bit of sharing. It doesn't get much more difficult. Keep seeing it that way. If you want to save $100,000, you will have to spend less than you earn. Finished. It is not more difficult.

3. Save automatically

If I saved what was left at the end of the month, I would still have an empty savings account. Yes, also with me, that account is almost always empty at the end of the month. If you know what your costs are in a month, you also know approximately how much you can save. So as soon as your money is in, you put that money in a savings account. Save first, spend second. You can now automatically save, so that your bank automatically transfers it to your savings account on a certain date.

4. Take your time

More haste less speed. Jak, what a cliche, but it's true. Of course you would rather reach your goal today than tomorrow, but most people don't have €100,000 together overnight. Set realistic goals. We actually had no time frame in mind. We saved as much as we could and saw our net worth growing, which made us excited to move on. Saving is not a sprint, it is an endurance run. If you start too hard, you won't last.

5. Don't think of yourself as pathetic so easily

Cutting back on your expenses is part of saving. And that doesn't mean you have to sit by the fireplace next to a pack of cheap wine on Saturday evenings from now on in a thick sweater. It does mean that you forgo those senseless impulse purchases. You don't miss anything, because research has shown for years that they are not going to make you happier. Keep in mind that you are doing this for yourself. Not for anyone else, not under duress. You choose it yourself and it will ultimately bring you more happiness than those impulse purchases are doing now.

6. Dive into your finances

Yes, sorry, this one really fits. Make an overview of income and expenses. Don't spend more time on it than necessary, because most people find this annoying to do. It is necessary evil on the way to your first ability. And if you really go for it, I hardly dare say it, a cash book will also help you. Don't give up now. Such a notebook really gives you more insight. So you are more likely to reach your goal. On the Rabobank site you can get a free household book that works very well.

7. Start earning some extra money

I understand that not everyone has a big income. Really and truly. I do believe that anyone who is healthy in body and limb can try to earn something extra. Babysitting neighbours' children, an online trade, selling stuff on Marktplaats. I wrote a piece about passive income before . That is income in which you invest once with your time (and sometimes money) and which then continues to generate income. Be inspired by it.

8. Only your opinion counts

If you plan on saving $100,000, everyone will agree. My 5-year-old son always says: 'What you find, you have to bring to the police.' That seems like a good response, even among grown-ups. Let everyone enjoy it all. He who laughs last laughs best.

9. Change your money mindset

Many people have a negative feeling about money. discharge! What happened in the past has happened. You are now going to look ahead and your future could look very bright. See money as a means to achieve your goals. Something nice, positive, which offers possibilities. Allow yourself to have money and to save. It is not a punishment but a gift to yourself.

10. Success

Yes! You're now part of the 100k club (I just figured this out. We've never gotten together or anything). My last tip: stay grateful. Reaching this goal is not feasible for everyone, I am very aware of that. With a reasonable income, especially with two incomes, you will come a long way. But not everyone is in such a situation. So: if it works, realize that you are lucky. I am still grateful every day and also try to share with people who are less fortunate. A nice gift, a spontaneous contribution, donate some money to a Sinterklaas campaign for families with less to spend. Sometimes you don't necessarily get less from sharing, but more in a non-financial way.