$20,000 Later: Life After Winnings

I was about five months into working in the fitness industry until I lost my job due to Covid-19. It was a minimum-wage job, and I was exploring my interests in the field. Basically, one coach got a bunch of members infected, and it was all downhill from there.

"I'm quitting this Saturday," I say via text to my manager.

On a Wednesday.

Call it rude, but I was comfortable quitting on short notice to protect my health. I had a master's degree to fall back on. Plus, I could use the time off to prep for a job as a therapist. I took careful notes and spent much of my time studying and writing psychology articles online to help others and solidify my learning.

Days later, I wound up winning a writing contest whose grand prize was $20,000. I didn't think I'd come out in 1st place. But I must admit I was exhilarated when I found out the news. I planned to quit my job at the gym regardless of if I won or lost. But there it was, $20,000, sitting in my checking account.

I moved out of my parents' house almost immediately.

I felt ready for this because I was planning out my move for the longest time. I landed a cozy 1-bedroom apartment in New York City. After unpacking, I figured it would be best to write out my budget for the coming months.

Then I realized some not-so-exciting news.

$20,000 is not a lot of money.

I took the time and wrote out my budget in a small black notebook that I'd been keeping for years. It used to be a journal, then it was a sketchbook, and now it's for budgets. However, at the rate I'm going, this prize money will not last me long. After just quitting a job, getting a new one was a priority, especially after moving out.

Cutting back on senseless spending was also important.

It meant taking ruthless stock of my financial carelessness and impulsivity. I felt uncomfortable seeing where my money was going. Money went towards clothes the last few months, food with friends every week, and was dropped on many decorations.

If I didn't play it smart, this $20,000 would be gone in about five months.

After all, I was burning nearly $4,000 a month. And knowing myself, I may be spending money in other areas that I'm still blind to. If I didn't cut back, I would have to give up my apartment sooner than I thought.

Going back to live with my parents would be an embarrassment. It would mean I didn't even try to find a new job and just sat back doing nothing. To put things in perspective and figure out ways to cut back, I applied financial advice from a smart friend.

From there, I learned to get creative with saving money.

Immediate Ways I Cut Back On Spending

My friend suggested setting aside about 30% for taxes in the coming tax year.

That left me with $14,000.

I had to forget about floating for 5 months and instead think of 3. In a good way, this forced me to get serious about cutting back my spending. Here's what I did.

1. Take Into Account Your Electricity Expenditure

Are you really saving electricity? I began with little things like turning off the lights when I wasn't using them. I used "Energy Star" appliances and only did laundry when I had a full load. Plus, utility costs were lower at night. Luckily I was raised not to use a dishwasher and cleaned all of my dishes by hand, saving me money.

2. Swap Sugary Snacks For Fruits

I stopped buying snacks from the grocery. While all those sweet deals for candy and chocolate were in my face after Valentine's Day, I pulled away. I switched to fruits and vegetables blended into smoothies. Let me tell you, to soothe my cravings for sugary sweets and replace them with fruits has been the best "life hack" I stuck with. I've been tossing them into a blender and experimenting with all sorts of combinations. Now, I don't feel the slightest bit guilty about wanting sweets because I know fresh fruits will always be the answer.

3. Hit Up Your Friends, Switch To Family Plans

For music and Dropbox, I switched to family plans. Normally Spotify is around $10/mo, and the family plan is $15/mo. Split among six people, Spotify becomes $2.50 for everyone involved. I wound up hitting up the five closest people interested in a family plan, and we all saved ourselves a little bit of cash. Dropbox Plus sits at about $12/mo for one person, while the family plan is $20/mo for six people. Apply the same method here: find friends to split the plan with, and you and yours will pay about $3.33 each.

4. You Don't Need A Gym Membership

Lastly, I cut back on spending money on a fitness app to provide me a workout plan at the gym. Over the years, I saved up enough money to eventually have enough equipment for a home gym. If you ask me, all you need is an adjustable bench, adjustable dumbbells, a yoga mat, and resistance bands. You can get a treadmill, stationary bike, and/or rower if you want to go the extra mile (pun intended). After a couple of years of weight training, I've come up with my own workout plan.

As long as it includes squats, bench presses, pull-ups, deadlifts, overhead presses, or any variation of these five, you're good to go.

Life After Contest Winnings

Overall, I may have only saved $119 this month and added more money to my Roth IRA and emergency fund. But I stopped buying clothes and snacks I didn't need. I can keep all my subscriptions, some at a lower price, or nothing at all. And I'm proud of being able to contribute more to retirement now as well as preparing for a rainy day too.

I could probably cut back on a lot more, like living with a roommate and switching health insurance plans.

$20,000 from a contest made me realize it's not all sunshine and rainbows afterward. I still had to lock down a job. But in the meantime, after the results of the challenge, I took my writing seriously. I continued the habit for months to come.

Today, I find it funny to see the parallels in both money and my hobbies. I lost a lot of money on things I could have let go of. I had so many hobbies I wanted to do but never stuck with.

When I started cutting back, I saved money and improved.

When I focused on one hobby, I made much faster progress.

The $20,000 let me take the leap of a lifetime and move out. But the work continued, and in a few weeks, I was working remotely as a mental health counselor.

The work never really ends, even if you win. But it shouldn't make you any less grateful. When you do get recognized for your perseverance, remember: that's only the beginning.