Kristin Wong earns a six-figure income working at Google, but she lives as if she's making $30,000. All to pay off student loan debt and my first home in New York City.
That's no small feat in one of the world's most expensive cities, where the median rent is $3,300, according to Zillow. Add in utilities and groceries, and living in New York City can end up being expensive.
This is before considering other potential costs, such as student loan debt, transportation, and insurance. Not to mention the cost of having a social life.
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To save money, Wong told MarketWatch she maximizes tax deductions, uses credit card points when possible, and automates as many financial processes as possible.
So far, the effort is paying off. Thanks to her frugality, she was able to buy her first home in New York City, pay off $47,000 in debt, and book a honeymoon to Singapore and Japan.
Here are Wong's tips on how to live like a broke person so you can live rich later.
1. Save all bonuses and gifts
Whenever Wong receives a windfall, whether it's a bonus at work or a financial gift from a friend or family member, she puts it towards her student loans.
“I was very proactive about it,” she said.
If you have a large amount of student loan debt or large credit card balances, you'll find that interest rates often add up to a very high amount of debt over time. By making large (or small) additional payments on top of your regular monthly payments, you can avoid paying additional interest over time.
If you're lucky enough to have no debt, you can apply this principle to your investment strategy. If you have some extra cash, save it in a retirement account.
Note that you don't have to go as extreme as Wong to make this work. She may keep her 100% of the profits she earns aside, but there's nothing wrong with using them. Several Use your funds for fun. Even if you set aside 15% for yourself today and 85% for your future self (for things like paying off debt or saving for retirement), you'll be in a better financial position than you were before. You may also not feel so privileged.
read more: As U.S. home prices slump, ultra-wealthy Americans are snatching up prime real estate overseas, but here's a smart way to invest without moving abroad.
2. Eat cheap
According to the U.S. Bureau of Labor Statistics, food is the third largest expense for U.S. households, accounting for 12.8% of all spending in 2022.
When Wong eats out, he saves money by choosing the cheapest option at a restaurant.
“I'm not hiding it,” she said.
Instead, she fills up on carbohydrates or pre-meals. I also make it a habit to check a restaurant's menu in advance to see if I can get at least one of her items within my budget.
If there's free food at work, she'll put it in a doggy bag and take it home.
“Actually, I only had a holiday party once. [where] He ate the whole plate and ended up feeding us for a week,” she said.
Wong isn't ashamed to take home leftovers, but he's cautious about it.
“It doesn't look very good to go to the office and eat this whole food.” [tray] I’m out,” she said. “But then they all understand: New York is expensive.”
While not everyone has an office that offers free meals, there are other ways to save on this big expense. Meal planning, reusing leftovers, and taking advantage of sales are all great ways to cut down on your grocery budget.
3. Extra income
To make extra money, Wong works as a cat sitter for Rover, an online pet services marketplace.
Wong says she always rationalizes the costs of her side hustle from a business perspective, especially when it's also a personal commitment. When it comes to her side business, she is not afraid to invest in high-end or expensive items if she thinks she will get a great return on the investment if it makes it more attractive to Rover's potential customers.
“In terms of business sense, [that] it might be [tax] “If it gets written off, that could be a good thing for Rover,” she said. [on] On a personal level, my cats will be happy. ”
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