4 Ways To Save Your First $100K, According to Financial Author Anthony O’Neal

A six-figure savings account is a significant financial milestone, especially in today’s challenging economic environment. The average person saves just 2.9% of their income, and half of Americans live paycheck to paycheck with less than $500 in savings, according to a recent GOBankingRates survey .

Money expert Anthony O’Neal knows what it’s like to struggle to save. He’s gone from living in his car with tens of thousands of dollars in debt to being a go-to financial personality. He’s hit the $100,000 benchmark and recently posted an article teaching others how to do the same. Here are four of his top tips.

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1. Increase Your Earning Potential

You can cut out all discretionary spending and find every possible way to reduce your expenses, but you’ll always have bills. An income boost is the best way to pay those bills with more left over.

As someone who built his wealth from nothing, O’Neal understands that making more can be easier said than done. He did it by taking courses that taught him marketable skills, including new tech competencies and advanced soft skills.

“Investing in yourself is the best financial decision you can make,” O’Neal said. “It’s about how effectively you can increase your income to boost those savings.”

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2. Embrace Financial Minimalism

Earning more will help you save, but you still need to control your spending. One increasingly popular way to do so is financial minimalism, a budgeting trend that’s derived from physical minimalism: decluttering and living with less.

As someone who used to splurge on “every new gadget or trendy item,” O’Neal understands the challenges and benefits of minimalism. He’s learned to question every purchase and to buy only genuinely essential things.

This level of discipline is vital when your income is low and you’re at risk of spending above your means. Once you start earning more, though, it keeps you from experiencing what money pros call “lifestyle inflation” or “lifestyle creep,” which is upgrading your standard of living when your income rises.

3. Resist Lifestyle Inflation

If you’ve ever struggled to make ends meet, you know that some upgrades are necessary. Buying a safer car, moving into a better-maintained apartment or adopting a pet can improve your mental health and quality of life enough to be true “necessities.”

As you earn more, think carefully about how you upgrade your life. Avoid justifying too many extras just because you can afford them or “you’ve worked hard.” You’ve also worked hard to boost your income, and you don’t want to splurge it away.

Start by paying yourself first. Decide how much you want to save or invest for the month and make that amount a high-priority budget item. Lay out the rest of your budget from what’s left over, and you won’t spend your savings away.

4. Find an Accountability Partner

Staying disciplined is almost always tougher alone. O’Neal recommended overcoming this challenge by finding someone to check in and report your progress with.

“Imagine having someone who understands your financial aspirations and shares similar values,” O’Neal wrote. “This person, whether it’s a trusted friend, a family member or a professional financial planner, can keep you motivated and on track.”

O’Neal advised meeting regularly to discuss your recent successes and setbacks. These check-ins can help you stick to your goals and prioritize your progress. The more progress you make, the more motivated you’ll be to keep going and hit that $100,000 savings goal.

This article originally appeared on GOBankingRates.com : 4 Ways To Save Your First $100K, According to Financial Author Anthony O’Neal