How To Save $100,000 in 5 Years

How To Save $100,000 in 5 Years

How to save $100,000

There’s no better feeling then seeing your net worth reach the $100,000 mark for the first time. For me, this happened a few months ago, 5 years after I graduated and got my first job out of school. I think it’s important as a new blogger to inform people about my past financial decisions, which can help you make your own (I hope!). How to Save $100,000 is a pretty common inquiry. Here’s how I did it!


My income varied A LOT over the past 5 years. I started off making $45,000 a year, then eventually $85,000 and then back down and then back up. Needless to say, my income was like a roller coaster! I summarized all of my tax assessments and found that my average taxable income over the past 5 years was $70,600. Being in Ontario Canada, I have to pay provincial and federal income tax as well as contribute to employment insurance and the Canadian Pension Plan. On average, my deductions were about $15,000 a year. Additionally, I received an annual average tax return of $3,742 through RRSP contributions (lowering my tax bracket). You might be thinking… How to save $100,000? I only make $40,000 a year! Yes, this might be tough and you might have to adjust your targets or timelines, but the principles remain the same.


My biggest expense was my living costs. As soon as I graduated University, I moved to the city since my parents lived too far away from where all the jobs were. Being frugal, I lived in my sisters basement in 2013 and 2014 and only had to pay $400 a month in rent, voluntarily. This is when I was able to pay back my $12,500 in student loans (OSAP) before the interest period started. Once my OSAP was paid off, my savings went into fifth gear! Eventually I moved out of my sisters into a fancy condo when she had her first child. For 15 months of rent, I paid $23,625 plus utilities. Looking back on this, I just want to slap myself! Eventually I smartened up  and moved into a new rental with a roommate. This saved me SO MUCH money from 2016-2018. I saved $23,800 over 28 months! Find out how having a roommate can help you save here. My living (rent + utility) costs over these 5 years totaled between $65,000 and $70,000. Of course there are many more expenses (food, clothing, car, gas, etc…. aka life), but this was the biggest of them all.


When I first started making money I didn’t have a lot of knowledge on investing. I simply went to my bank and opened up a TFSA and RRSP account. Within these accounts an ‘expert/adviser’ would manage my mutual funds… and take a huge chunk of my money! After a few years, I basically had 0% returns after fees and I got fed up. That’s when I discovered WealthSimple. I moved ALL my investments over there and then my returns really started to pile in. I’m going to do a separate review on WealthSimple, but I can tell you I’ve had a great experience with them so far. My annual returns with them definitely added thousands of dollars to my total net worth.

How To Save $100,000 in 5 Years

  1. Pay off all debt before interest kicks in
  2. Save, save, save!
  3. Invest

Seriously, that’s what I did. With my income I was able to set my automatic savings plans at $600 bi-weekly. I also started making my own damn coffee (and applied the principle). This resulted in close to $16,000 in automated savings per year. Then, when I could, I’d also transfer any extra money I had into my TFSA as long as I had contribution room.

I put in around $27,000 into my RRSP over those 5 years, knowing I’d get the tax returns and could take $25,000 out to buy a home (Home Buyers Plan).  I also have my current employer contributing money to RRSPs and a company pension now. You can see their status at My Wealth.

It’s a lot of numbers. A decent amount of income and quite a few expenses, but I am proud that I saved $100,000 in 5 years. Purchasing a house of course put a dent on these numbers, but it’s time to get back on the horse and reach 6 figures in my accounts again! I hope all of you reach your goals too!

Mr. WW

2 Replies to “How To Save $100,000 in 5 Years”

  1. This, thank you for this very inspiring post!

    I can relate to what you said about variable income. My freelancing income is what makes up most of my income, so it obviously varies a lot! And I also agree with investing. I have an emergency fund (with 3-months-worth of expenses) and a savings account, but the rest of my extra money, I just put towards investments. It’s never good to keep most of your money in a bank and have it sit there anyway, doing nothing.

    Congratulations for the achievement and please, keep it up!