Michela Allocca, a 30-year-old personal finance consultant, has an enviable net worth of more than $700,000. She accomplished this amazing feat by learning how to live frugally during her 20s. Allocca hasn’t looked back on these sacrifices as she’s moved through her early adult life.
Accountability
She’s committed to making evidence-based decisions that seek out long-term sustainability rather than short-term pleasure. These strategies are a testament to her commitment to financial freedom. They further focus on a simpler, less expensive lifestyle that many millennials are already honing to their advantage.
During her 20s, Allocca consciously decided not to spend money she didn’t need to. She avoided paying for any service she could do herself and adopted a one-in-one-out rule with her clothes. By focusing on functionality and versatility with each piece of clothing, Allocca proved you can create a chic, affordable wardrobe. She said she could have lived alone but decided to share the space with others instead. This one decision put her in a much more affordable position to save thousands on housing costs.
Embracing Minimalism in Fashion
Allocca’s thoughtful approach to her wardrobe is a perfect example of Bridgitte’s philosophy of intentionality over spending. She didn’t want to cram a thousand pieces into her wardrobe. Rather than trying to keep up with the trends, she focused on making a few smart purchases that she could create new looks with effortlessly. She bought the same things in different colors. By adhering to her go-to colors, she was able to create a look that totally flows without breaking the bank.
“We act like not having these things in our early 20s means we’re never going to have them.” – Michela Allocca
This strategic approach made her day-to-day life much more manageable. It even assisted her in keeping up a very sharp presentation for not a lot of cash. Allocca focuses on maintaining an investment of quality over quantity. She believes that conscious fashion consumption can save you thousands.
Cost-Effective Living Arrangements
Allocca’s living situation in her 20s years only added to her financial win. During much of that decade she chose to have roommates. At one time, she even had to share a bathroom with three other people. This setup further decreased her rent and added costs by a substantial margin, providing her an opportunity to save around $1,000 a month.
As with many young people during the COVID-19 pandemic, moving back in with her parents turned out to be a prudent financial move for Allocca. This temporary living arrangement freed her up to save even more money. At the age of 27, she was doing well enough that she wanted to upscale into a larger, more luxurious apartment. Allocca waited and carefully amassed her savings and landed a better financial situation. This strategic method allowed her to feel equipped to make a better decision about where she should live.
“If I’m not willing to go pick it up, then I’m not ordering it out, I’m cooking at home.” – Michela Allocca
She made a decision to sacrifice the convenience of living with just herself. This decision allowed her to prioritize her financial goals, all while enjoying a dynamic social life with her new roommates.
Travel Planning and Budgeting
Allocca’s travel habits add to that picture and highlight her money-savvy work ethic. During her early 20s, she just planned around expensive trips, wanted to save for bigger experiences when she could. By her late 20s, Allocca began the intentional process of planning bigger trips. She looked for trips that interested her and, more specifically, might help her accomplish her goals.
“If I am going to go on a vacation, it has to be something that I actually want to go on, not because I’m feeling pressured to go somewhere.” – Michela Allocca
She carefully planned and budgeted for these trips far in advance. Provided deep conversations and thoughtful preparation, each one turned out to be very rich, but budgetwise, very practical. Allocca agrees that with strategic planning, there doesn’t have to be overspending to create something that people will remember.
Besides skipping costly travel upfront, Allocca was ruthless with her spending at their base of operations as well. She stopped using services that were convenient but unnecessary—like delivery and rideshare services—unless she really needed to use them. This discipline freed up funds that she was able to shift into savings and investments.
“I didn’t take any unnecessary Ubers, I never ordered delivery.” – Michela Allocca