Millennial saved over £70,000 before turning 25 and plans to retire a millionaire
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After leaving college in 2016, Ms Dunlap worked in digital marketing before starting her own company, Her First $100K. The money guru now has millions of followers across her social media channels and shared the four simple steps she used to build up her six figure savings.
Ms Dunlap shared her story on her website, saying that it all started when her friends began coming to her for financial advice after college.
She credits her money knowledge with having been taught financial education by her parents, assuming everyone had the same exposure and experience to money from a young age.
“However, I quickly learned that most women are at a severe disadvantage when it comes to their money and career knowledge,” she writes on her website.
While in her very first job, Ms Dunlap looked in dismay as she realised how many women were being denied career opportunities and accepting less than their worth.
Now Ms Dunlap endeavours to provide over 500,000 women the financial education they lack as well as tips and tricks on personal finance topics like investing, saving and how to ask for a raise.
Currently working as a full-time financial coach running a seven-figure company, Ms Dunlap shared how she saved $100,000 (£74,462) before turning 25 in just four simple steps, dubbed The Financial Game Plan.
Step one – Automate savings and create an emergency fund
Ms Dunlap shared the very first thing individuals should do, regardless of how good or bad their financial position, is to create an emergency fund consisting of at least three months’ worth of expenses in a high-yield savings account.
She advised the easiest way to do this is by “setting it on auto-pilot” through an automatic transfer from one’s normal bank account into their savings every month.
This is also known in the personal finance world as “paying yourself first”, and is a commonly suggested method of saving, treating one’s monthly savings as a necessity like any other bill.
Step two – Pay off high-interest debt
While some may not even have debt to pay off, for those with multiple income drains such as credit cards and loans are advised to prioritise high-interest debt first.
Ms Dunlap noted these debts are usually the most costly, saying out of a range of credit cards, people should pay off the highest debt first rather than contributing equally to all credit cards every month.
Step three – Invest for retirement
Many assume retirement investing doesn’t need to start right at the beginning of one’s career, but Ms Dunlap has showcased how preparing for retirement early can have the biggest financial benefits.
By prioritising her retirement, even in her early twenties, has meant her current predictions show she will retire with $6million (£4.4million).
Once the emergency fund is full and paying off debt is well underway, Ms Dunlap suggests prioritising investing in retirement funds and paying off lower interest debts like mortgages and car loans.
Step four – Save for big purchases
The final step in Ms Dunlap’s Financial Game Plan is to start saving for what she calls “big stuff”, such as college tuition, buying a house and other large financial milestones including life goals.
Ms Dunlap suggests a high-yield savings account for this stage, separating this from their emergency fund.
She also noted one can open individual savings accounts for different goals, such as a summer holiday account aside from a house deposit account.
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