I Saved $10,000 in One Month: Here’s How You Can Do It, Too
Written by
Jake Safane
Edited by
Chris Cluff
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Growing up as part of what he describes as the working poor, money was tight for the formative years of Michael Keenan, co-founder of Peak Freelance. But with an entrepreneurial spirit and a commitment to improving his finances, he has been able to save and invest a lot of money in a short period of time.
Shortly after college in 2014, Keenan was waiting tables and trying to figure out his direction in life. But he had a clear goal of traveling to India, so he stocked away his server tips in an envelope until he reached $10,000 about 7-8 months later.
However, that was far from the end of his saving journey.
Around that same time, Keenan started freelance writing and eventually made that his full-time job. Over the years, he has dramatically increased his income to the point where, in March 2023, he realized that he could max out his retirement savings for tax year 2022 by saving another $10,000.
This time around, Keenan didn’t have to use the envelope method. Instead, he focused on the income side of the equation and picked up extra work. By writing more, he earned and saved an extra $10,000 in one month.
Control Your Income
Keenan now lives in Mexico, but his cost of living isn’t why he’s able to save $10,000. He had that ability while still living in the U.S., thanks to his focus on growing his freelance income.
“You have to control your income in order to save money,” Keenan said.
In other words, finding ways to earn more money while having your own input into how much you earn can free you up to save more.
“Especially with the cost-of-living crisis that people are going through right now, the only way to do it, in my opinion, is to start controlling your income,” he said. “You can’t have your income capped by somebody else.”
Even as a server, Keenan took this philosophy to heart.
“Despite being an employee, I still had control over how good of an experience I could provide customers in order to earn tips,” he said. “If I provide a really good, really efficient experience for them, I could maybe earn 22%, instead of just providing mediocre service and earning 15% or 12%.”
Granted, Keenan doesn’t recommend that everyone rush to quit their 9-5 jobs. But he does recommend finding another source of income that you have more control over.
If you’re social, maybe you could pick up bartending shifts and earn good money in tips, he said. Or maybe you want to go the freelance route, such as by being a freelance writer or designer. You also could try to monetize your hobbies, he said.
While he understands the need for work-life balance, Keenan said, at the end of the day, sometimes you need to take action and find another source of income.
“If you want to save more money, you need to bring more money in,” he said. “I really don’t think climbing a corporate ladder is the best way to do that.”
More Than Savings
Now that Keenan earns well into the six figures, his focus has moved beyond just saving money. That’s not to say that he spends frivolously. Even wealthy people can end up living paycheck to paycheck if they’re not careful with their expenses. But he has set his life up in a way where he doesn’t have to worry about the minutiae of budgeting, as his cash flow exceeds his costs.
“I have a one-bedroom apartment that I share with my partner and two dogs,” he said. “We have a very comfortable life, and we’re not big spenders.”
By controlling his income and getting to a place where he has things like an emergency fund and retirement savings in place, he said he has the financial security to enjoy his income, like by ordering Uber Eats without worrying about what specifically he orders, because he can afford it.
Having a good nest egg gives you mental security and therefore confidence to take risks and be more open with how you use your money, he said.
“You don’t feel like you’re at your desk panicking to get work done because you need to make your rent, or you need to pay for food,” Keenan said. “It eliminates the need to do things coming from a place of scarcity.”
With his surplus earnings, his savings goals have transitioned to focusing on growing his savings, rather than letting it sit in an envelope. In other words, he looks for ways to make his money work for him.
When interest rates weren’t as high, he invested more in the stock market. Right now, he’s focusing more on growing his retirement savings and pouring money into areas like high-yield savings accounts to take advantage of high interest rates, until they come down, he said. He also now invests directly in other businesses.
“My savings goals have changed from saving money for an experience to bringing in more cash flow so I can invest,” he said.
Keenan’s story shows that you don’t have to be born rich, clip coupons or work as a corporate executive to save $10,000 or more. If you can find ways to earn more money while not letting your lifestyle get out of control, you too may be able to reach or even exceed your savings goals.
