Now that you’ve thought about it, have you ever wondered how you could save $10,000 annually? Is it possible to achieve this? What’s more, why would you? Well, a lot of your life’s goals and events hinge on one thing: money.
While it’s true that money doesn’t buy happiness, it does provide you with more flexibility and choices.
To provide us with some of the possibilities we desire, we sometimes require a higher sum of money than usual. It’s in the five figures.
Has a down payment on a house or a big trip been calling your name lately? Or do you want to finally get rid of your student loan debt?
Or are you looking to add to your existing investment portfolio? Saving an additional $10,000 this year would be beneficial.
If you’ve never been able to save much money or have a low income, it may feel like a pipe dream to save for the future. However, hold off on dismissing it 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 make it easier for you to achieve your goals.
💰 Breakdown of Saving $10,000
It’s important to understand how to save $10,000 in a year, both in terms of what it entails and how much it looks like.
A fancy proclamation on a whiteboard does not drive you to save as much as cold, hard numbers do. Either you’re saving a number when you look at it, or you’re not.
Saving money is like losing weight. Numbers never lie, and this one isn’t going to either.
Saving $10,000 over the course of a year works out to $833.33 every month. Many individuals, including myself, may find that burdensome, so let’s reduce it to a level that is more manageable for the average person.
Smaller sums of money to put aside each month may seem more realistic to you than $1,00 a month.
To save $10,000, you would have to set aside $384.62 per paycheck if you are paid biweekly.
Try to locate $190.30 each week in savings if you’re thinking about it that way.
No matter how many digits you choose to use, the important thing is that this is what you need in order to achieve your goals.
💵 How to Save $10,000 in a Year in Six Simple Steps
1. Spend less on bills
Sit down and look through your spending to find $833 each month to save.
While some people may not have much in the way of expenses to slash, a lot of people have items on their list that are easily trimmed.
Now is the moment to phone your service providers and see what you can work out.
How much of your phone bill is devoted to a service that you don’t actually use? Do you have too much insurance for a beater? Look for areas where you may save money and only spend what you absolutely need.
Rent is normally the most expensive item on a person’s budget, but see if you can obtain a roommate or if you’d be better off trying to find a new place to rent altogether.
2. Reduce eating out
To save $10,000 in a year, all you have to do is eat more meals at home.
The average American family spends hundreds of dollars a year eating out.
Even if you don’t go out to eat on a regular basis, the cost of coffees and lunches from drive-throughs can quickly add up.
For those who are not convinced by the savings in money, consider the calories you will save by not eating out as often.
Make a habit of bringing a salad to work and learn how to cook a variety of meals at home.
3. Cut down on your entertainment expenses
A social butterfly may spend several hundred dollars a month on outings with friends without even realizing it.
It’s easy to spend $300 a month on brunch, happy hour specials, admission, and Lyft. Every week, I give myself $50 to spend on whatever I want.
It’s amazing how often it feels like that’s not enough to fund even one outing.
However, I’ve discovered that hosting potlucks or game evenings with friends at my house is more relaxing and saves money at the same time.
Finding free or low-cost things to do is a good way to save ten thousand dollars in a year.
4. Find new ways to make money
The majority of folks do not have an extra $833 a month to spare.
Despite the fact that I always recommend finding savings in your budget to prevent unnecessary spending (more money in the bank = more money to travel!) I’m also a proponent of working harder to increase your income.
Make a formal request for a wage increase
Make a list of your accomplishments from the previous year and present it to your manager when requesting a raise.
If a pay increase isn’t on the table, find out how you can get it.
A performance plan can help you gain the training or skills you’ll need to advance in your profession.
When a pay increase isn’t feasible for your job or company, it’s better for you (and your career) to look for work elsewhere.
Start a second job or business venture
It’s possible to make more money even if you can’t find a new job or get a raise.
Start a side hustle! Actually, a side hustle can bring you $200-$1,100 each month on an average!
There are so many things that can be done from the comfort of your own home, online, or both now that we live in a gig economy!
If dealing with people isn’t your cup of tea, consider being a pet sitter or dog walker.
In addition, you can earn money by reselling goods from Goodwill stores on eBay, writing freelance articles, or working as a virtual assistant.
Side hustles can be anything you want them to be as long as you have the right skills.
Working two or three extra jobs on the side is a great way to save $10,000 in one year!
Pick up a new skill
Learning new money-making abilities is one method to make more and save $10,000 every year!
To increase my income by over 65 percent as a non-profit professional, I went back to school to master new skills and bargained for a higher salary.
To help other small business owners succeed, I’ve built a lucrative freelancing career.
Because I’m an extrovert, when others succeed, I succeed as well.
My skill set enables me to excel in both of the mentioned roles.
Discovering your strengths and developing new, high-paying abilities opens up a world of possibilities for earning more money.
5. Automate your savings
When saving for a specific purpose, such as going overseas to study or paying for an unexpected vet bill, I’ve had success by automating my efforts.
Whenever I swipe my debit card, my bank gives me the option of adding a dollar to my savings account.
My savings account ends the year with a few hundred dollars since I didn’t notice little amounts were being transferred here and there without my knowledge.
If you want to automate a transfer like this, you can start with a small but significant sum per paycheck and gradually increase it over time.
You may save $10,000 in one year by automating your savings.
6. Do spending fast
One strategy to save $10,000 in a year is to go on a spending fast for a month.
This will help you get to your savings target faster.
During spending fast, you refrain from shopping or making particular purchases to reduce your spending.
Planning ahead allows you to separate your wants from your requirements, which allows you to spend less and save more money.
Many people restrict their spending to only the necessities, such as food produced at home and gas, while others treat themselves to a lunch out or a ticket to a movie they’ve been looking forward to.
It’s entirely up to you how you spend the money you’ve saved during spending fast.
You’ll have a better idea of how much money you need to get by focusing your spending on necessities rather than wants.
You’ll be able to see where your money goes and where you may save even more money by using this tool.
You will also find ways to simplify your life as a result of going on a spending fast, which will lead to less stress and less money being spent.
All of this adds up to more funds in the bank account.
🧐 Keep In Mind Why You Want to Save $10,000 Per Year
Personal finance is largely an emotional effort.
After years of having false money beliefs, our minds may have developed multiple money scripts that we’re working to unlearn.
The issue isn’t your fault, and you’ll be able to correct it now that you’re aware of the situation.
Don’t lose sight of why you set the lofty goal of saving $10,000 each year in the first place.
Was it in order to go on a trip? Your retirement savings should be maximized if possible. You’ve set aside money for your children’s education?
Alternatively, perhaps it’s the down payment on the tiny house down the corner that’s gotten you so happy.
Whatever the case may be, never forget how much you’re worth. It’s ok to prioritize your wants and needs over those of others.
This in no way implies that you’re conceited or ungrateful.
Prioritizing your well-being allows you to be your best self and, as a result, give more to those around you.
Being of true service is only possible when you have a strong basis.
Everyone’s version of this appears different, yet deep inside you know exactly how yours looks.
📌 Bottom Line
With this new knowledge, you’ll be able to save $ 10,000 in a year with ease! In a year, a lot may happen. It’s not impossible to save $10,000 in a year.
It’s within your reach if you reduce spending, increase your income, and reset your belief.
❓ You Might Ask
1. How long will it take to save up $10,000?
Making a savings goal is simple if your income is steady. If you divide $10,000 by the length of a year, you’ll get an answer of $833. That’s how much additional money you’ll need to set aside each month to hit your financial goal each year.
2. Is $10,000 good for savings?
Having $10,000 in savings is a significant achievement when compared to the statistical averages and the majority of Americans. The sooner you achieve this goal, the better off you’ll be financially in the future and when you establish a family if you choose to do so.
3. How much should I save each month?
The majority of financial experts advise that you set aside at least 20% of your monthly income for savings. According to the 50-30-20 budgeting strategy, you should spend 50% of your income on necessities, save 20%, and have 30% of your income available for expenses.