How to Save $100K *in this economy*

We're all looking for the secret hack... what is it?

Author

Michela Allocca
August 26, 2025

👉🏻 The TL;DR (5 minute read):

If you want $100K faster, you don’t need overhaul your life—tune five levers:

  • nudge your 401(k)

  • leverage AI tools

  • maximize cash-back

  • actually track expenses

  • run a weekly money routine

Tiny, repeatable actions compound long-term.

🚨 Get started on your personal finance journey with one of my budgeting tools! Check out the Personal Finance Dashboard and the Basic Budgeting Template! 

MONEY
What I’d do differently in 2025 to reach $100K

Have you noticed that on social media, it seems like there is a mad dash to reaching a $100K net worth?

Well, it’s not just an arbitrary number - and it’s a great target to work towards in your 20s and 30s.

The first $100K is the hardest to reach, but once you cross the threshold, building wealth gets exponentially easier.

I reached a $100K net worth at 25 (and I wrote a book about it!) - but this was 5 years ago!

And things look a little different these days, so part of your strategy may need to shift.

Today, I’m going to share 5 money tips that will help you on your journey to $100K (and beyond!! Even if you’re past this milestone, these all still apply).

The first 3 are small tweaks, and the last 2 are long-term habits (that you can probably already predict) - but combined, they will help boost your trajectory and get you to the finish line faster!

Let’s get into it!

1. Give your 401k a 1–2% raise

This is one of those things you should be in the habit of doing every 6 months to a year. If you get a raise (even an inflation raise), the FIRST move to make is to increase your 401k contribution.

It will have a very minor impact on your take-home pay in the immediate term, but would be upwards of a $300K difference in retirement (on a $66k annual salary if you increased your contribution from 9% to 11% one time).

Use this as your reminder to go up your 401k contribution right now 🙂

2. Take advantage of AI

This is not something that I had in my toolkit 5 years ago. And there are sooo many ways to use it!

You could use a tool like Cleo which can help you build a budget and serve as your personal money coach with a little ~flare.

Or you go keep things straight-edge and use Chat GPT to help you put together a financial plan.

I am still exploring AI as part of my financial toolkit (if you’d like more content on this let me know!) but I sure as hellllll know if this was available to me years ago I’d be chatting up a storm to find the best path forward.

3. Optimize cash back & rewards

If you are not earning cash back you are leaving money on the table. It’s 2025!! Here are 3 super easy ways you can start earning more cash back:

  1. Rakuten: this is a cash-back plug in (the new version of ebates) where you can earn money back on the purchases you’re already making. Then, every 3 months you get a check in the mail. Yup! Get Rakuten and earn $30 in cash back after your first purchase.

  2. Open a high-yield savings account: This is like a bare-minimum financial must-do. All your cash (aside from about 1 month of bills in your checking account) should be in a HYSA. I recently switched to SoFi which I recommend if you’re in the market for a HYSA!

  3. Consider a cash-back credit card: I recently got an AmEx Blue Cash card where I can earn money back on groceries!

4. Track your expenses

I hate to be the one to break it to ya but if you aren’t tracking your expenses you’re spending more than you think.

And I know that I sound like a broken record because I am pretty sure I talk about expense tracking every week in this newsletter - but it really is that important. 

This is one of those habits to get into early in your financial journey - you’ll learn more about your spending habits and values, and you will reach your goals faster. I promise.

You can start tracking your expenses with The Personal Finance Dashboard or the Basic Budgeting Template!

5. Follow a Weekly Money Routine

To tag on another step to expense tracking - start implementing some financial routines. In the same way you may run through a Sunday reset routine or a weekly workout routine, you also need a financial routine.

Progress is a result of consistency - rather than focusing on goals, focus on creating a system to get there.

Each week, you need to track your expenses, review and self-reflect, and then make adjustments to your budget as needed. I have a Youtube video where I explain exactly how to do this!

Which tweak are you focused on this week??

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WEEKLY RECOMMENDATION

Another recommendation from my favorite Substack - this week, Hanna is discussing friendships, social anxiety, and money. And how the financial dynamics of friendships can actually impact how you relate to each other. She explains it better than I do!

RESOURCES
What’s Happening This Week at Break Your Budget

  • This week on Don’t Depend on Daddy: I’m focusing on small habits and tricks to start looking more put together. If I’ve learned anything this year, it’s that the secret to looking effortlessly put together and elevated is in the small details! If you’re also on your style and upgrade journey, you’ll love this episode.

  • Reaching Your First $100K: If you enjoyed this newsletter and want more details around each tip, check out this weeks youtube video! This is also my first true sponsored youtube video, so it would mean the world to me if you like it and leave a comment!! ❤️ 

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xoxo,

Michela