How I Saved $100k Before 25
- Shai-Lin Gothreau
- Mar 26
- 4 min read
Updated: Mar 27
In 2021, I graduated college and moved across the country to begin my corporate career. At the time, I had $3,000 in a brokerage account, approximately $2,000 of savings, and $20,000 in student loans. My initial goal was to save my first $100k by the time I turned 30, but within just four years, I not only met that goal - I surpassed it. Continue reading to find out how I maximized different investment accounts to achieve this financial milestone, and how you can make changes in your savings strategy to reach your financial goals!
I Contributed 15% to my 401(k)
My parents and I never discussed finances in depth, but they had always told me to find a company that offers a 401(k), and make sure I contribute the match. When I started my career, the first thing I did was go into my employer sponsored retirement account and contribute the company match - 5%. At the time, my mindset was that I had just come from 4 years of living as a broke college student, and with my savings goal as my priority, I decided to continue living frugally. With that in mind, I made the decision to contribute 15%, 10% over the match, to my 401(k). This decision was crucial to me hitting my goal of $100k by age 30.
When I initially funded my 401(k), it was all in a traditional 401(k) allocated to a 2065 target fund account. However, after learning more about retirement accounts, I switched my investments to the Roth 401(k) option that my company offered for potentially greater tax advantages. I also took a look at the other funds that employees could invest in rather than target funds and chose one that would be more aggressive.
My Advice: Since this money is contributed before you receive it in a paycheck, it can be easier to part with it. Try increasing your employer sponsored contributions annually, or with each raise/bonus.
I switched to an HSA
I didn't switch over to a Health Savings Account (HSA) until 2023, but I've been loving it ever since. I contribute the max percentage of my paycheck so I can hit the annual max contribution limit. I made the decision to switch to this account over my previous healthcare because:
1. I don't have a lot of health expenses
2. I saved the deductible in my emergency fund for any out-of-pocket expenses
For me, the ability to invest and have this money grow tax-free outweighed the high deductible.
My Advice: If your employer offers this benefit, and it makes sense based on your health and lifestyle, consider switching plans during open enrollment.
I Opened a HYSA for an Emergency Fund
The first two accounts were set up as automatic contributions. This one took more discipline to invest consistently in. Once I received my paycheck, I tried to make it routine to contribute a certain amount into a High Yield Savings Account (HYSA) to fund my emergency fund. I'll admit, some months I didn't contribute anything. However, as I progress in my personal finance journey, I've made it a priority to 'Pay Myself First' and contribute to my savings/investments just like I would any monthly bill. This, in addition to having a HYSA, has helped me build compound interest in my cash account.
My Advice: Traditional savings accounts often have low annual percentage yields (APY) compared to high yield savings accounts. Contact your local bank or credit union, or look at online banking options, to find a HYSA that works for you.
I Started a Roth IRA
It wasn't until 2023 that I had learned, and understood, the value of IRA accounts. Similar to the Roth 401(k), you contribute after-tax money to a Roth IRA which you can withdraw tax-free at retirement. In contrast, there are Traditional 401(k) and IRAs which you contribute pre-tax, but the funds are taxed at withdrawal.
By 2023, I had grown my emergency savings fund and took the risk of withdrawing $6,500 to fully fund my Roth IRA on January 1st. Since then, I've saved throughout the year to max out my Roth IRA contributions on January 1st.
My Advice: If you're looking for other retirement account options, consider a Traditional or Roth IRA. Speak to your financial planner to find out which account is best for you.
I Learned to Invest Smartly
In 2020, I learned how to invest by investing in singular stocks. Admittedly, it wasn’t the wisest investment strategy, but it's what started my personal finance journey. As I learned more about ETFs, Mutual Funds, and other investment vehicles, I started to contribute any extra money to grow my brokerage account. I experimented with funds, learned what my risk tolerance was, and how I could get the best returns for my risk.
My Advice: A simple google search can be a great place to learn how to start investing. You can also work with a financial planner to find the investments that work best for your individual needs.
There is no magic formula to hit your first $100k, but with discipline and strategic savings, it doesn’t have to take 10+ years to reach this goal. A financial planner can help you create a roadmap to achieve your goals and reduce risks that would slow down your progress.
Interested in starting your financial journey to reach your first $100k? Schedule a call today!
Important Disclosures: Infinity Financial Services is a registered investment advisor offering investment advisory services through Core Planning, LLC. Registration does not imply a certain level of skill or training. This blog is for personal finance education, not advice, and you should consult with your own adviser before taking action. Please click here to read the full disclosures.
Great work, Shai!