When people hear that I saved $72,000 by age 27, they often assume I must have had a high-paying job.
I didn’t.
In fact, my first teaching salary was $35,000 a year, and before that I made $28,000 as a litigation paralegal right after graduating college. I also live in New York City, which is definitely not known for being cheap. So saving money here on a teacher’s salary wasn’t exactly easy.
But by the time I turned 27, I had managed to save $72,000.
Back then, I didn’t know much about personal finance, and I definitely wasn’t making six figures.
What I did have was a habit of saving, a clear goal, and a few choices that helped me stay consistent over time.
If you’re wondering how to save money in your 20s, my experience taught me that it’s not just about how much you make, but also what you do with it. Before I get into the 7 things that helped me save $72,000, a little context might help.
A Quick Backstory: I Wasn’t Financially Educated
I didn’t grow up learning about budgeting, investing, or financial planning. But my parents always reminded me that saving money mattered, and for some reason, that message really stuck with me.
Even as a teenager, when I was helping my mom clean apartments in New York City or working at McDonald’s, I always tried to save something, even if it was just $5 or $10 from my paycheck.
Looking back, I didn’t realize it at the time, but saving even small amounts became a habit that stayed with me.
My First Job Out of College Changed My Plan
When I graduated from college, my original plan was to move out and live on my own. I didn’t really want to move back home and go back to the rules that came with living in an Ecuadorian household. If you grew up in a Latino household, you probably know exactly what I mean.
Like many people in their early 20s, I wanted my independence.
But then reality hit.
My first job paid $28,000 a year as a litigation paralegal, and when I did the math, I realized I simply couldn’t afford rent in New York. So instead of forcing it financially, I moved back in with my parents.
It was not what I pictured for myself after graduating, but it ended up being one of the best financial decisions I could have made. By the end of that first year, I was honestly surprised that I had managed to save money on such a low salary.
That’s when I started thinking, If I could save money making $28,000, what could happen if I stayed consistent for a few more years?
So I decided to keep living at home and focus on building my savings.
My Salary Progression in My 20s
At 23, I became a teacher and started earning about $35,000 a year.
It wasn’t a huge salary, but the opportunity came with one major benefit: the school would pay for my master’s degree.
As I gained experience and completed my degree, my salary started to go up. Eventually, it grew into the $70k–$80k range, but during the years I was building these savings, I was never making six figures.
Here’s roughly what my salary progression looked like during those years:
- First year teaching: about $35,000
- Second year: about $59,000
- Third year: about $70,000
- Fourth year: about $74,000
- Fifth year: about $79,000
I share this for context because when people hear that I saved $72,000 by 27, they sometimes assume I must have been earning six figures.
I wasn’t.
My income did grow over time, but a big part of how I built these savings was by building better habits as my salary increased.
How to Save Money in Your 20s: 7 Things That Helped Me
Saving $72,000 by 27 didn’t happen overnight. It was the result of several years of small decisions and habits that added up over time.
Looking back, these are the 7 main things that helped me save $72,000 in my 20s.
1. Having a Clear Savings Goal
One of the biggest things that helped me save in my 20s was having a clear goal.
For me, that goal was buying a home.
At 22, I told myself I would keep living at home until I saved enough to buy my own place. Growing up in a Latino household, owning a home was always tied to the idea of the American dream. It was something I heard a lot growing up: work hard, build a better future, and eventually have something of your own.
If I had the opportunity to live at home and save, why not take advantage of that and work toward that goal?
Having a clear goal made saving feel more purposeful. I wasn’t just putting money aside because I felt like I should. I knew what I was working toward.
And just to be clear, saving didn’t mean I stopped enjoying my life. I still traveled, went out with friends, and bought things I enjoyed. The difference was that I had a goal in mind, so I wasn’t just spending money as it came in. I was also making sure to save some along the way.
If you’re trying to save money too, having a clear goal can make a huge difference. It gives your money a purpose and makes it easier to stay focused.
2. Paying Myself First
Another thing that helped me save consistently was something I didn’t even realize had a name at the time: paying yourself first.
Because I had the goal of buying a home in mind, I got into the habit of moving money into savings as soon as I got paid. Having a goal is one thing, but actually setting money aside is what helped me make progress toward it.
The amount wasn’t always the same. Some months it was $500, and other months it was over $1,000 depending on what I had going on. If I had a trip planned or extra expenses that month, I might save less. Other months, when my spending was lower, I was able to save more.
Looking back, I realize I was essentially paying myself first without even knowing that’s what it was called. I made saving a priority, even if the amount changed from month to month.
It also taught me that saving does not have to be perfect to count. You do not have to start with a huge amount. What matters most is getting into the habit of setting something aside consistently.
If you’re trying to save too, even setting aside a small amount first can help you build consistency. Once that habit is there, it gets easier to keep saving and build on it over time.
3. Living at Home to Lower My Housing Costs
One of the biggest reasons I was able to save so much money in my 20s was because I lived at home with my parents.
Housing is usually the largest expense for most people. By living at home, I was able to dramatically lower that cost during those years.
During my first year after college, I contributed $100 a month to help out at home. Once I started teaching, that amount went up to $300 a month. Even with that contribution, it was still far less than what I would have paid in rent if I had moved out in New York City.
That decision alone allowed me to save thousands of dollars each year. I recognize that this was a privilege, and I’m really grateful for it because I know not everyone has that option.
If living at home is an option for you, even temporarily, it can be one way to lower your biggest expense and create more room to save.
And if it’s not, there are still other ways people lower housing costs, like living with roommates, renting a room instead of a full apartment, or moving a little farther out to find something more affordable.
If you’re trying to save money too, lowering your housing costs, even temporarily, can free up more room in your budget than you might think.
4. Keeping My Food Costs Low
Another big way I saved money was on food.
Since I lived at home, we had home-cooked meals most nights. Instead of ordering takeout during the workweek, I usually packed leftovers from dinner the night before and brought them with me to school.
And when we did not have leftovers, I still tried to be thoughtful about how I spent money on food. Sometimes I would go to a nearby Spanish restaurant and get something like a half-baked chicken with rice and beans for around $12. Instead of eating the whole thing at once, I would split it into two meals, one for dinner and one for lunch the next day. That way, I was essentially getting two meals for about $6 each, which was still much cheaper than ordering takeout or delivery every workweek.
And of course, every once in a while I still bought things like an overpriced salad or something I was craving. But that wasn’t something I did often, maybe once a month or so.
On the weekends, things were a little different. That was usually when I went out to brunch or dinner with friends, spent time with family, or occasionally ordered takeout. I did not try to cut those things out completely. I was just more intentional during the week so I could still enjoy them without letting food spending cut too much into what I was able to save.
Living at home and having my parents cook definitely helped keep my food costs lower. But even if that’s not your situation, there are still ways to cut down on food spending. I know because I started doing this more when I eventually moved out.
Things like meal prepping once or twice a week, bringing lunch to work a few days a week, or being more intentional about when you choose to eat out can make a noticeable difference over time.
If you’re trying to save too, paying more attention to what you spend on food can make it easier to keep more money for your bigger goals. Little food purchases here and there can really add up fast.
5. Saving on Transportation
Another way I saved money in my 20s was by keeping my transportation costs low.
Before I started teaching, I actually had a car. But once I began teaching, I decided not to keep it.
Living in New York City made that decision a lot more realistic because public transportation is widely available. Instead of paying for a car, insurance, gas, parking, and maintenance, I relied mostly on the train and bus to get around.
It was not always the most convenient option, but it was much cheaper. A monthly MetroCard was around $130, while owning a car could easily cost $400 to $600 or more a month once you factor in insurance, gas, parking, and maintenance.
For a few years, I also carpooled with a coworker and contributed about $80 a month toward parking. Even that was still much cheaper than owning my own car and made the commute more convenient.
Of course, not everyone lives somewhere with public transportation like New York City. But depending on your situation, there may still be ways to lower transportation costs, whether that looks like carpooling, biking, using public transportation, or choosing a more affordable car.
Not owning a car during those years helped me save a significant amount of money each month.
If you’re trying to save too, lowering your transportation costs can be another way to free up money for your bigger goals.
6. Learning How to Budget
For the first few years in my 20s, I didn’t actually know how to budget.
I had a general sense of my expenses. I knew living at home was saving me a lot compared to paying rent, and I tried to be mindful of things like food, transportation, and other spending. But I did not have my numbers clearly laid out.
Around my mid-20s, I started becoming more curious about personal finance. Even though my savings were growing, progress sometimes felt slow, and I remember thinking there had to be a better way to save.
So I started learning more. I followed personal finance accounts online, watched YouTube videos, read books, and even did a financial coaching session. The more I learned, the more I realized that one of the foundations of managing your money well is having a budget.
The method that worked best for me was a zero-based budget. It showed me exactly where every dollar was going, and that was honestly eye-opening.
Even though I had already built the habit of saving, I realized I had been saving somewhat randomly. Once I could actually see where my money was going, I became much more intentional with my spending. It allowed me to prioritize my savings, so it had a real place in my budget instead of just saving whatever was left over.
I still made room for things I enjoyed, like traveling, spending time with friends, and shopping. The difference was that now I had a clearer plan.
This is also when I started organizing my savings into different goals.
Instead of putting everything into one general savings account, I created separate sinking funds for things like my emergency fund, travel, and most importantly, my home fund. Having a specific account for my home goal made it even more motivating because I could actually see the progress each month.
Learning how to budget did not mean I suddenly became perfect with money, but it gave me more clarity and helped me create a better plan for reaching my savings goals.
If you’re trying to save too, learning how to budget can be a great place to start. Even just seeing where your money is going can help you make better decisions and prioritize the things that matter most to you.
7. Increasing My Income
Saving money was a big part of how I reached my goal, but increasing my income also helped me get there faster.
As I gained experience as a teacher and completed my master’s degree, my salary gradually increased. I still wasn’t making six figures, but those raises helped me save more as the years went on.
I also looked for ways to earn extra money outside of my full-time job.
For example, I started tutoring students after school. It allowed me to earn additional income while using the teaching skills I already had.
I also sold clothes online through platforms like Poshmark. It started as a way to declutter things I no longer wore, but it also became another small source of extra income.
None of these income sources made me rich overnight, but they did help me save faster and move closer to my home goal.
Something I’ve learned over time is that while lowering your expenses matters, there’s only so much you can cut. At some point, earning more can give you more room to save.
If you’re thinking about ways to increase your income, start by looking at the skills you already have. Maybe you can tutor, freelance, babysit, sell items you no longer use, or pick up a flexible side gig on the weekends. It might not seem like much at first, but that extra money can help you save faster.
What Saving $72,000 by 27 Taught Me
Looking back, the biggest lesson I learned is that saving money is not just about how much you make. It is also about the decisions you make with what you earn.
I did not make six figures during most of my 20s, and I definitely did not have everything figured out from the beginning. But over time, I made choices that helped me stay consistent and make progress toward my goal.
The other thing I realized is that saving money in your 20s does not mean you have to stop enjoying your life. During those years, I still traveled, went out with friends, and bought things I wanted. I just learned how to be more thoughtful about my spending so I could do both.
Saving $72,000 did not happen overnight. It took years of small decisions, consistency, and adjusting as I went. Some of those choices were temporary. They were part of the bigger picture.
If you’re trying to build your savings too, know that it is possible, even on a lower salary, even if you are starting from zero, and even if you do not have it all figured out yet.
You just have to start somewhere and keep going.
If You Want to Start Saving Money in Your 20s, Here’s What Helped Me
- Start saving something, even if it is small
- Have a clear goal in mind
- Lower your biggest expenses first, especially housing, transportation, and food
- Save before you spend the rest
- Learn how to budget so you can see where your money is going (grab my free budget template to get started)
- Look for ways to increase your income when you can
- Focus on consistency, not perfection
You do not have to do everything perfectly. What matters most when saving money in your 20s is getting started and staying consistent.