How I Saved $60K by 23 (And How You Can Too)

Money is a tool that helps you achieve freedom. But for so many young people, it feels harder than ever to save. Rising living costs, student loans, and the pressures of social spending can make it seem impossible to get ahead. I get it because I was there too.

By the age of 23, I managed to save $60,000 on what was far from a six-figure income. No handouts, no fancy job titles, just small but consistent steps that helped me grow my savings. I’m here to tell you that it’s not about how much you make; it’s about how effectively you use your money. And guess what? You can do this too.

This blog will share the mindset shifts, practical strategies, and lessons I learned along the way. Whether you’re just starting out or looking to save smarter, these tips will help you take control of your financial future.

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The Mindset Shift That Changed Everything

Saving money starts with how you think about it. I adopted a “saving-first” mentality early on, and that simple mindset shift changed how I approached my finances.

Prioritise Savings, Not Spending

Instead of viewing savings as “what’s left over” at the end of the month, treat it like a non-negotiable expense. Pay yourself first by setting aside a portion of every paycheck before covering anything else. This approach made saving a habit, not an afterthought.

Grow Your Money Mindset

Your financial success starts in your head. I told myself, “It’s not about what you earn; it’s about what you keep.” While I never earned more than $75,000 annually, focusing on how I spent and made additional income allowed me to save. To develop this mindset:

• Start by reading The Barefoot Investor by Scott Pape; it’s packed with practical tips for building financial freedom and completely changed the way I approach saving. For extra motivation, pair it with The $1,000 Project by Canna Campbell, a game-changer for side hustle inspiration. Together, these books are a powerful combo to kickstart your financial journey. [Get your copy of The Barefoot Investor here] and [Grab The $1,000 Project here].

• Surround yourself with people who inspire smart money decisions and growth.

• Celebrate small milestones. Watching my savings grow was a huge motivator.

When saving becomes part of your identity, it creates the fuel to stay consistent even when financial challenges arise.

Practical Strategies to Start Saving Smarter

Once your mindset is in the right place, the next step is to take action with practical strategies. Here’s exactly what worked for me:

1. Budgeting and Tracking Expenses

If you don’t know where your money goes, you can’t save it.

Create a Budget  

I built a basic budget to track my income and expenses. Start with the 50/30/20 rule:

50% of income for needs (rent, groceries, bills)

30% for wants (entertainment, dining out)

20% for savings or debt repayments

Track Every Dollar  

Even the smallest expenses add up. I realised I was spending over $100 a month on coffee, so I decided to invest in a coffee machine instead. This simple switch cut my monthly spending by $70, and now I can enjoy great coffee at home without breaking the bank.

2. Side Hustles and Income Growth

One income stream wasn’t enough for me to reach my goal quickly, so I got creative with side hustles.

Sell Items Online  

I flipped secondhand couches via Facebook Marketplace and Gumtree. Restoring and reselling furniture became a surprisingly profitable (and fun) way to make cash outside my full-time job.

Freelancing or Gig Work  

Platforms like Airtasker became my go-to for quick gigs. Think of pet-sitting, odd jobs, and even assisting in events and flat-pack furniture assembly. Each extra dollar I earned went straight into my savings account.

Negotiate Your Salary  

At my “9-5,” I regularly checked market salary benchmarks and wasn’t afraid to negotiate raises. Know your worth and ask for it.

3. Mastering Smart Spending

Saving doesn’t mean sacrificing your lifestyle, but mindful choices matter.

Cut Unnecessary Expenses  

I quit some subscription services, cooked more at home, and found affordable ways to socialise (hello, BYO picnics!).

Wait Before Buying  

Impulse purchases can destroy a budget. I’d wait 24 hours before buying non-essentials, which helped separate needs from wants.

Prioritise Value Over Cheapness  

Instead of choosing the cheapest option, I spent money on high-quality items that lasted longer (like a durable pair of sneakers), saving me money in the long run.

Purchase High-Quality Second-Hand Items  

I started hunting for second-hand gems on platforms like Facebook Marketplace. Why? You can often find the exact same item, usually in excellent condition, for over 50% off the original price. It’s like scoring a Black Friday deal every day! Plus, it's a more sustainable choice. Of course, moderation is key; but when I needed something practical, this was a game-changer for my budget and the planet.

The Power of Investing Early

Saving $60K wasn’t just about stashing money in a bank account. Focusing on building my superannuation became just as important.

I make small, extra contributions to my superannuation (or 401(k) for those in the U.S.) to harness the power of compounding interest. Here's why:

• Boost Your Retirement Savings: Salary sacrificing allows you to contribute extra funds to your superannuation before tax, helping you grow your retirement savings faster.

• Tax Benefits: Contributions made through salary sacrificing are taxed at a lower rate (typically 15%) than your regular income, which can reduce your overall tax bill.

• Power of Compound Growth: The earlier you add extra funds to your super, the longer they have to grow through compound interest, setting you up for a more comfortable future.

• Set and Forget: By automating additional contributions, you can steadily grow your super without needing to think about it regularly.

Facing Challenges and Staying Consistent

Saving money is rarely a smooth ride, and setbacks can happen to anyone. Here’s how I navigated mine.

Dealing with Unexpected Expenses

My first car turned out to be a lemon, costing me $4,000 in repairs. Just three months after replacing it, I was in a car accident, leading to more financial strain (another loss of $7,000). Here’s what I learned:

Have an Emergency Fund  

Set aside $1,000-$2,000; personally I like to sit at $5,000 (for obvious reasons)^ to cover unexpected costs and avoid dipping into savings.

Avoid Bad Debt  

I purchased my next car, and any car I’ve owned with my savings outright, instead of taking on debt for a depreciating asset.

Managing Peer Pressure

I don't go out frequently, and I'm fortunate that the people closest to me are the same way. Because of this, on the rare occasions when friends wanted to spend weekends on dinners or drinks, I couldn't resist the fear of missing out. If your situation is different:

Suggest Affordable Alternatives  

From movie nights to shared home dinners, switching expensive activities for budget-friendly options made a big difference.

Communicate Your Goals  

When I explained my savings plan, people became more supportive (and sometimes inspired).

Overcoming Disappointments

Not everything went to plan. A career opportunity I pursued early on turned sour, requiring me to live off my savings for 1.5 years. It was a setback, but that experience became one of my biggest lessons.

Through it all, I stuck to the fundamentals of budgeting, saving first, and keeping my long-term goals in mind.

Recap & Start Your Savings Journey

Not everyone’s financial path will look the same as mine, but the principles are universal.

• Shift your mindset and prioritise saving.

• Track every dollar, cut unnecessary spending, and budget effectively.

• Pursue extra income streams to accelerate your progress.

• Invest in your retirement, no matter how small.

• Prepare for setbacks, but stay consistent with your goals.

If I managed to save $60K by the age of 23 and I am willing to start all over, you can do it too. Begin with small steps, but begin today.

Your future self will be grateful.

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