I like people who think ahead. In the case of Tori Dunlap, who wrote this article for Forbes, she’s thinking very far ahead. I was intrigued by her contribution and ability to forward think enough that I thought I’d come and share what she’s doing in today’s update.
24 Year Old Dishes Tips on Saving $100,000
Having never made over $80,000 in year, despite having three full time jobs at various times in life, Tori Dunlap is on pace to have $100,000 saved by next year. At the ripe age of 24, that’s very impressive. I think I was still somewhere in $40,000 – $60,000 of debt, mostly through credit cards, at that point. Thankfully, that turned fast and at around 25 I had great success, but that’s a story for another time.
The majority of Tori’s money is going into retirement savings accounts, which she has identified as a ROTH IRA and a SEP IRA, two things I speak about frequently on this website. The rest of her funds go into a rainy day fund she calls an emergency fund, as well as savings, checking, and investment accounts.
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Tori mentions that it’s a priority for her to save money in life, and she owes that to her parents. (I owe this to my Father as well.) She got a strong financial education from a young age. (Mad respect.)
She goes on to tell a story on how the experience she learned from starting a vending machine business at the age of nine was invaluable. She learned things from rejection, how to pitch, and opening bank accounts. Her profits from the business went into a tuition fund, and eventually the business was sold to a ten year old who happened to share the same name – Tori. Through that, she was able to become a mentor to the new owner!
She continues to reference having advantages like growing up in a middle class family and having zero college debt, so you can see Tori is very level headed and realizes her situation is one where she can take clear advantage of the room she has to save. Now, let’s delve into her tips on saving money, that’s what we’re all here for!
Six Tips to Save Money by Tori Dunlap
Photo Credit: Forbes.
#1: Have a Side Hustle
Tori worked 15 hours per week ON TOP of her full time job. She did this by freelancing as a social media marketer.
#2: Invest Early
Tori opened a ROTH IRA immediately after college and maxed it out every year. #powermove.
#3: Negotiation Salary and Raises
I like how she says “Negotiations are collaborations, not conflicts.” That’s a very worldly way of looking at it. Most people are embarrassed to ask for money, even sales people! She talks about how she got $10,000 more for the social media gig and also delves into other ways she got paid more for her efforts.
#4: Don’t Fall into a Trap of Lifestyle Inflation
Prioritize values and goals. Tori lives in an area that saves her 25% on rent because it’s not the upscale trendy area people desire to live in. That’s a huge savings when rent is a big portion of your expenses in your early 20’s.
#5: Manage Spending With the Three Bucket Budget Rule
Bucket one is living expenses. The necessary evils like rent, food, and utilities. Bucket two is for goals. That’s going to be retirement, a future home, and investments. Bucket three is for the rest. Travel, clothes, etc.
#6: Learn From Failures and Take Things one Step at a Time
We all struggle at saving money. Things come up. Whether it’s the unexpected appliance break down or that once in a life time trip with family or friends, things happen. (Those are my words, but I’m in agreement with her that things come up and we all don’t save as much as we set out to save.)
Overall I find her approach very refreshing, doable, and relatable. Well said, Tori. Will love to see where you are savings-wise in ten years. Get it!
About Tim Schmidt
Tim Schmidt is an Entrepreneur who has covered retirement investing since 2012. He started this website to share his expertise in using his Self-Directed IRA. Most recently he's been advising individuals to diversify into precious metals ahead of a certain recession. He invested with Goldco.