How Wall Street's Youngest Female Teller Saves 85% of Her Income

 How Wall Street's Youngest Female Teller Saves 85% of Her Income

Lauren Simmons pays rent for the year in advance, rides an electric car instead of a gas car, and exercises at home.

At 22, Lauren Simmons became the youngest full-time female trader on Wall Street, and the second African-American female trader in the New York Stock Exchange's 229-year history. Currently, she is a 27-year-old entrepreneur and host of the Going Public series. Her goal is to impart what she's learned to help young people make smart financial decisions.

On CNBC, she said: "One thing I've noticed is that in general, most people have very bad spending habits and struggle to save money. You know, it sounds hard to believe, but I always save up to 85% of my annual income. This is what I was taught from a young age. If I was given $50 a month for pocket money, I would only spend $7-8 that month."

Simmons knows that "everyone has a situation". However, she still wants to share a few habits that have helped her save money and build a fortune over the years.

Lauren Simmons currently earns $650,000 per month. Photo: CNBC

Lauren Simmons currently earns $650,000 per month. Photo: CNBC

1. Limiting lifestyle inflation

When I took my first job on Wall Street in 2017, I made $1,200 a year. Currently, my income is 650,000 USD, an increase of more than 5,000%, mainly through live broadcasts and speaking at events. But I remain very clear about my needs and desires, always maintaining a plan to save 85% of my income.

2. Prepayment of rent

I always pay the rent for the whole year in advance. This way, if I face an unexpected financial situation, I know I'm safe and won't have to worry about the rent.

But if you can't pay for the whole year in advance, try to pay for 6 months, then start saving for the next 6 months. If you set aside a fixed amount in advance and stick to your budget, you'll spend less on things you don't need.

3. Take an electric car instead of a gas car

When I moved from New York City (where public transit is ubiquitous) to California in 2012, I knew I would have to buy a car. To protect the environment, I choose an electric car instead of a gas car. But as it turned out, it made a huge difference to my wallet.

It costs me less than 30 USD per month to charge the car. The market now has a lot of electric cars. Choose one that fits your income.

3. Don't spend money on junk food

I am very aware of what I put into my body and how it makes me feel. Healthy food options may be more expensive, but it helps me focus and have more energy.

I keep spending $250 on junk food every month. To keep costs down, I don't buy sugary snacks or expensive, unhealthy products. I only eat fresh fruit every day.

4. Buy a subscription package with the whole family

I pay for the Hulu service. Another family member pays Netflix. And another person buys Prime Video. This allows us all to watch our favorite shows and still save hundreds of dollars a year.

5. Gym at home

Gyms at the centers are great, but membership fees are also very expensive. In New York, it can cost you around $3,260 a year.

As for me, the exercises that do not need equipment, can be practiced anywhere are the most suitable. I also bought more weights and some other equipment to practice at home according to the videos on the Internet.

I also take advantage of rock climbing and other free, outdoor activities that keep my body active. I love cycling, and even though I don't have a bike, I can still hire many services for free the first hour.

6. Know your risk tolerance limit

This will help you map out how you will save and invest. I am quite conservative with investment options, but I will balance them with realistic risks.

For example, one of my savings accounts is worth $10,000 and has only grown by $53 in 2 years. Of course this investment isn't ideal, but I know I won't lose money with it. Meanwhile, my stock portfolio grew from $327 to $5,900 in the last year alone.

7. Traveling in low season

Since the world is still living in a pandemic, I usually work from home. But even though my flexibility has increased significantly, I still want to relax my mind. So I choose to travel.

Traveling in low season saves me a lot of money. One of my favorite destinations in Hat is Florida. I save 45% - 65% on airfare and beachfront hotel rent in spring compared to summer. The weather is also great.