Think hitting your savings targets is impossible? Discover how six women managed to do just that.
Saving money can be tough. It demands consistent discipline and commitment. A recent survey revealed that only 56% of women feel confident they're saving enough for retirement, while 65% of men share that sentiment. However, reaching savings goals is achievable, as evidenced by these six women who collectively saved nearly $300,000. Here’s their journey and the insights they gained along the way.
Carly Fauth, 35, Milford, Mass.: Saved $5,000 for a Vacation
Her goal: Carly, the marketing head at a financial site, aimed to save enough for a trip to Denmark to visit family, all in cash to avoid credit card debt. She meticulously planned her budget two years ahead to ensure she knew her target savings.
How she did it: Carly slashed her monthly expenses, including her cell phone, Internet, and cable bills. She started using coupons and reduced her smartphone data plan after realizing she was overpaying. “I downgraded my cable and Internet plans as well,” she mentions.
She minimized personal spending, cutting back on clothes and snacks, and opted for home workouts instead of a gym membership. Initially, she transferred variable surplus funds to a savings account manually. Once her savings became steadier, she automated the transfers, saving over $200 a month and hitting her $5,000 goal in time for her trip.
Lessons learned: “To achieve a savings goal, you need a solid plan. Create it, implement it, and stick to it. It might sound simple, but focus and determination can help you reach any financial target,” she advises.
Melissa Burkheimer, 30, Des Moines, Iowa: Saved $5,000 for Retirement
Her goal: Inspired by a finance show, Melissa aimed to save an extra $5,000 for her Roth IRA in 2013, aiming to maximize her contributions for the first time.
How she did it: In 2012, she trained herself to save 50% of her graphic design business revenue due to her fear of tax shortfalls. To meet her 2013 retirement goal, she set a reminder to transfer $250 monthly into her IRA. From January to July, she and her husband made six deposits of $250, then moved $2,500 from her business savings account in August. By fall, she added another $1,000, maxing her IRA contributions at $5,000.
Lessons learned: “Stay aware of your finances. You can achieve your goals if you plan and adapt as needed. Being flexible and not overburdening yourself will make the process smoother,” she says.
Nefertari Nelson Williams, 40, Willingboro, N.J.: Saved $10,000 to Buy a House
Her goal: Aiming for stability, single mom Nefertari targeted saving $10,000 for a down payment on a home.
How she did it: She reduced discretionary spending and set an automatic transfer of $1,000 monthly to her savings account. After nearly a year, she reached her goal, covering the down payment and some medical bills for mortgage approval.
Lessons learned: “Delaying gratification can yield great rewards. I avoided unnecessary purchases, and the sacrifices were worthwhile for homeownership,” she reflects.
Lauren Juliff, 25, London, U.K.: Saved $24,000 to Travel the World
Her goal: After high school, Lauren aspired to travel the globe for two years post-college, needing $24,000 for her adventures.
How she did it: Lauren prioritized her travel plans, simplifying her life and selling possessions for extra funds. Working two part-time jobs while studying, she cut unnecessary expenses. “Skipping my daily $5 coffee would save me $2,000 a year,” she shared.
She saved an average of $400 monthly over five years, eventually experiencing numerous countries during her travels, and even started a travel blog that turned into her full-time career.
Lessons learned: Sharing her goal publicly kept her accountable. “Documenting my savings journey motivated me to stay focused and seek new opportunities,” she concludes.
Traci Bild, 43, Clearwater, Fla.: Saved $250,000 in Liquid Cash
Her goal: Following 9/11, Traci sought financial security and aimed to save $250,000 to pay off her house at will.
How she did it: Over a decade, Traci achieved her objectives through disciplined savings. Living off her husband’s salary, she invested her income while eliminating debts. They became debt-free except for their mortgage, reaching $250,000 in liquid savings by late 2013.
Traci emphasizes automating savings: “If it’s not automatic, sticking to your goals becomes challenging.” She collaborates with a CPA to manage her increasing income and savings effectively.
Lessons learned: Traci suggests engaging in fulfilling hobbies that don't involve spending. “Avoid places that tempt overspending. Reflect on your financial habits to reshape your relationship with money for a better future,” she advises.
Jamie Palmeroni, 25, Rochester, N.Y.: Saved $5,200 for Vacations and Now Saving for a Baby
Her goal: In 2010, Jamie aimed to save $3,000 for a month-long Europe trip without financial worries upon her return.
After achieving that, she set additional goals, including $1,500 for another Europe trip in 2011 and $700 for Costa Rica in 2013. Currently, she’s saving $10,000 before her first baby arrives in April 2014.
How she did it: Her monthly savings varied based on travel timelines, contributing $200 to $250 for her earlier trips. For her 2013 goal, she saved about $230 monthly. Now, she allocates $500 to $1,000 monthly for her upcoming baby.
In her younger years, she saved only leftover funds. Now, she incorporates savings into her budget using an Excel sheet for tracking bills and savings.
Lessons learned: “Treat savings like a necessary bill. If you aim to save $200 monthly, include it in your budget. This approach clarifies your spending capability,” she recommends.
