Have you ever wondered how you could save $10,000 in a year? Is that even possible? Why would you want to, anyway? Well, a lot of your life's aims and events boil down to one thing: money.
Money does not buy you everything, but it does buy you freedom and options.
We occasionally require a higher sum than normal to provide us with some of the possibilities we desire. I'm talking about a five-figure sum. Is it a down payment on a house or a big trip you've been wishing for? Or perhaps you'd like to finally get rid of your student loan debt?
Or perhaps you wish to increase the size of your investment portfolio? Saving an extra $10,000 this year might be beneficial. It may seem impossible if you have previously struggled to save or have a low salary. But don't write it off just yet.
What if I told you that you could save $10,000 in a year by working hard and being financially resilient? Here's a strategy to get you started.
Figure out what saving $10,000 breaks down to
When it comes to saving $10,000 in a year, you must first comprehend how it works and how it appears. More than a flowery declaration on a chalkboard, cold hard numbers urge you to save. You're either saving or not saving a number when you look at it.
Saving money is the equivalent of reducing weight.
The number will not lie to you. Saving $10,000 over a year would equal $833.33 every month. For many individuals, including myself, that may sound intimidating, so let's break it down into something smaller than a rent payment.
Saving money in lesser amounts may seem more manageable than striving to save nearly $1,000 every month. If you get paid biweekly, saving $10,000 equals $384.62 every paycheck.
If you're trying to figure out what it would be every week, here it is - you'll need to set aside $190.30.
It's up to you what number you choose to use to break it down, but the important part is that this is what you'll need to achieve your goal.
9 Ways to save $10,000 in a year
Now that you know how to save $10,000 in a year, let's look at some particular ways to get started saving!
1. Save on bills
Sitting down and going through your spending with a fine-tooth comb is the quickest method to save $833 every month. Some people may not have much money to save, but twice as many have expenses that can be readily reduced.
It's time to phone your service providers and see what you can work out. Is there a service on your phone bill that you never use? Do you have too much insurance coverage on a car that is deemed a lemon? Examine what can be cut and just pay for what you require.
The most expensive item in a person's budget is usually rent, but see if you can find a roommate or if you should look for a different place to rent.
2. Cut back on eating out
Simply eating more meals at home can save you $10,000 each year. Americans enjoy eating out, and the average family spends thousands of dollars every year doing so.
Even if you don't eat at a nice restaurant every week, drive-through coffees and lunches add up.
If saving money wasn't enough to get you to start packing lunch more regularly, consider how many calories you'll be saving if you quit eating out so frequently.
Start bringing a salad to work and learn to prepare excellent meals at home more frequently.
3. Reduce your entertainment costs
If you're a social butterfly, you may spend a few hundred dollars every month on outings with pals without even realizing it. Brunch, happy hours, admission, and Lyfts alone might easily cost you $300 each month.
I set aside $50 per week for myself, and it's amazing how often it feels like I'm only able to cover one activity per week.
However, I've discovered that doing things at home with friends, such as potlucks or game evenings, is more relaxing and also saves money. One method to save $10,000 in a year is to choose budget-friendly hobbies.
4. Finding ways to earn more is how you can save $10,000 in a year faster
Many people do not have $833 in their monthly budget to reduce. This is a proven fact. While I always recommend cutting money from your budget to minimize excessive spending (more money in the bank = more money to travel!), I also believe in working harder.
5. Ask for a raise
One of the ways to save $10,000 in a year is to earn more money by asking for a raise! For every dollar earned by a white non-Hispanic male, I earn 53 cents. I can't put money aside that I don't have. For many people, including myself, the only way to save more is to work harder.
Make a list of all of your achievements from the previous year and request a raise from your manager. If a raise isn't on the cards, inquire about other options. You may require further training or abilities, so request a performance plan so you can receive what you need to advance your career.
When a raise isn't feasible for your work or company, it's better for you (and your career) to look for another job.
6. Start a side hustle
If getting a new job or a raise isn't an option, consider beginning a side hustle! The average side hustle can earn you anywhere from $200 to $1,100 per month! We live in a gig economy, where there are a plethora of tasks that may be done from home, online, or both!
If you enjoy being around people and seeing your city, Uber is a great way to make money while driving. If you’re not a people person, consider pet sitting or dog walking. You can also make money by selling Goodwill items on eBay, freelance writing, or working as a virtual assistant.
Numerous side hustles need various skill sets, so there is likely to be something for you. Side hustling is a great way to save $10,000 in a year.
7. Learn a new skill
One way to generate more money and save $10,000 in a year is to learn new money-making skills. As a non-profit professional, I was able to increase my income by nearly 65 percent by returning to school to obtain new skills and negotiating my wage. In addition, I've built a profitable freelancing business by assisting other small business owners.
I'm a people person, so when others succeed, I succeed as well. My skill set allows me to excel in both of the above positions. Your earning potential is limitless after you figure out what skills you have and master new high-income skills.
8. Find easy ways to automate your savings
Automating my funds has helped me meet my financial goals, such as saving for a study abroad trip or paying for an unexpected vet expense. For example, every time I swipe my debit card, my bank transfers a dollar to my savings account.
You may automate a transfer like this, or even a tiny but powerful sum per paycheck, and gradually grow it. One of the best ways to save $10,000 in a year with no effort is to automate your savings!
I am pleasantly delighted to see a few hundred dollars in my savings account by the end of the year without thinking about it because I was unaware that small sums were being moved here and there.
9. Try spending fast
Try spending fast for a month to save $10,000 in a year and jump-start your savings to help you accomplish your goal faster. You can go on a spending fast and cease shopping or spending in certain categories only to control your cash flow. You can identify your requirements and wants by planning ahead of time, which will help you spend less and save more in subsequent months.
Many people limit their spending to only essential items like groceries and gas, while others treat themselves to a meal out or a movie pass to watch a new film they've been dying to see.
It is entirely up to you what you do with the strategy of spending fast. You may see how much you need to get by, by limiting your spending to needs rather than wants.
You may also see where you squander money and where you might save even more money. Another advantage of spending fast is that it helps you simplify your life, resulting in less stress and less money spent. All of this adds up to more cash in the bank.
Remember why you want to save $10,000 in a year
A lot of personal money is emotional at the end of the day. After years of adopting incorrect notions about money, our minds may have different money scripts that we are attempting to break. This isn't your fault, and now that you're aware of the situation, you can take action to change it.
Remember why you set out on this journey to save $10,000 in a year in the first place. Was it for a trip? Why not make the most of your retirement to get closer to financial independence? Do you have a college fund for your children? Perhaps it's the down payment on the modest house on the corner that has your heart racing.
Whatever the case may be, realize that you are valuable. It's fine to prioritize your wants and necessities. This does not imply that you are self-centered or greedy. Putting yourself first allows you to be your best self, which allows you to contribute more to others.
You can only be of meaningful service if you have a strong basis. This appears differently for everyone, but you know what it looks like in your heart.
Reach your target and save $10,000 in a year!
You now know how to save $10,000 in one year! In a year, a lot may happen. $10,000 in a year does not have to be a stretch. It can be yours if you decrease costs, earn more, and reset your belief in yourself that you can succeed.