Woman managed to save £200k in six years after starting by putting away £20 a month
A woman used a specific money-saving rule to save 200k in just six years, so she could quit her job and live her dreams.
Don't we all wish we could save and then make a living off content creation and giving tips via TikTok to the masses?
Well, you might be able to if you're able to save as much as Paula Gavenyte.
The 31-year-old built herself a £200,000 investment portfolio, so she could finally quit her 'unfulfilling' £100,000-a-year 9-5 job that left her feeling like she was on 'autopilot'.
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Now, she's able to hand out finance tips, and make a living in a more unconventional way.
The Lithuania-native spent the last few years dedicating her time to building up an emergency fund capable of sustaining her for six months, and she did this by using the 50/30/20 rule.
Now living in Chelmsford, Paula began by putting away just £20 a month in a Stocks & Shares ISA.
Then, she divvied up the rest of her earnings via the 50/30/20 method, like this:
- 50 per cent towards bills
- 30 per cent towards things she wants
- 20 per cent for savings
However, she has also been using he 20 per cent savings pot for investment too.
She explained that she began her journey by putting just £20 or £50 a month into a Stocks & Shares ISA, and as she felt more secure in her investments, began to increase her deposits.
“When I started, it felt daunting to start investing, but the more you learn, the more risks you can take," she said.
However, after building up her emergency fund, Paula says she's now more stressed than ever, but it's a different type of stress.
She said: “When I quit my job, it was very scary. From a very young age, you have a structure, with school, university, then a career, so when you quit your job without knowing what you’re going to be doing, it’s terrifying.
“I feel more stressed now, as I don’t know when the next paycheque is coming, but it’s an excited kind of stress."
Through her meticulous planning, her plan has so-far worked out in her favour, so she 'wouldn’t advise people to just wake up and quit their job'.
She explained: "I would say, first, build up your finances, learn new skills, and create options for yourself.”
Currently, Paula is making around 90 per cent less than she was as a software engineer, but believes as she grows her content, she'll earn more.
At the moment, Paula said she is working around 12 hours a day, which is more than her standard 40 hours a week software job.
But she enjoys the freedom she has to do what she wants to do and believes success will come in the future.
“Nothing is easy in the first year, but I hope I can succeed," she said, revealing she's since had to cut back on some luxuries because of her drop in earnings.
Let's see what happens in the future.
Britt Jones