You should be saving 10% of your income, however, most American’s don’t have more than $2,500 in their savings account. Life can be unpredictable and you need to have some money saved as a cushion when sh*t hits the fan.
Although $10,000 seems like a lot of money, it’s actually a very achievable amount. Once you get the ball rolling and hit that first $10k, you will see how easy it is to save $20,000 or even $50,000.
So whether you want to save money for a rainy day, a down payment, a wedding or you just want to go galavanting across Europe for three months, here are 8 ways to save $10,000 in a year
So, How Do I Save $10,000 In A Year?
Saving money shouldn’t be hard or unpleasant. Just having a clear vision of what you want ($10,000) is a great step to take. If you don’t know what you want, you’ll never get there. So, I want you to take out a little piece of paper or you bullet journal and write down your goal. Under your goal, write down the steps you are going to take to reach it. If you are struggling to come up with a plan, keep reading for 8 easy and actionable tips to save $10,000 a year.
The first step in saving $10,000 in a year is getting organized. In order to save this much money, you need to set aside about $800 a month. Sit down with your budget and see where you can squeeze some extra money, or try and make some extra money in your free time. There are a lot of side hustles you can do from home that can help you make these $800 a month so you don’t have to slash your budget completely. Whatever extra money you make, put it into your savings and not towards spending.
Find Another Income Stream
Even if you can save an extra $800 from your current salary, I would never recommend you do that. Unless you make a large amount of money, taking $800 out of your checkings account a month can leave you feeling deprived. Just because your goal is to save a significant amount of money, you shouldn’t spend an entire year feeling pressured and unhappy to save that amount. A side hustle is a great way to supplement your current paycheck and alieve any tension or pressure you may feel to reach your goal.
There are a lot of side hustles you can do from anywhere in the world, but my all-time favorite has been blogging. Although blogging requires a significant amount of time and effort in the beginning, at this point my blog generates a steady (almost passive) income for me and helps me meet my financial goals with little stress and effort. If you’re interested in starting a blog, click here for my guide.
One of the biggest expenses we have is rent/mortgage. How much are you spending monthly on your home? Is it completely necessary? I downgraded from a house to a cozy apartment and was able to save more than $1,000 a month in the process! Perhaps you don’t want to part with your home, but what if you took on a roommate to share the cost? There is no shame in living with your parents if you have big financial goals.
Making these changes now can help you have a much more comfortable and secure future.
Stop Unnecessary Spending
This one is very hard for most. In the past, I would enjoy buying clothes and makeup and most of my money would go down the drain when I saw a good sale. The best piece of advise I can give you is that it is okay to go to the shops, however, if something catches your eye, think it over for a bit. Stop impulse shopping and spend a minimum of 24 hours before you decide to make a purchase.
Ask yourself questions like “do I need this? Do I have something similar at home?” when out shopping. Then, allowing yourself the 24-hour grace period lets you look over your wardrobe and realize that purchase isn’t really a necessity. If there is something you really do want, say ‘black boots,’ put it on a list and check sales. Don’t just go for the first pair of black boots you see. When you have a plan for your money, it can be fun to see just how
Stop Eating Out
Start planning your meals and eating out less. The amount of money you can save from a simple meal prep can be up to $500 a month!! When you sit down and add up how much money you spend on food in a week, you might be shocked. Make things that are really affordable to eat, such as pasta and rice. Cook in bulk so you can take the leftovers for lunch. If you get overwhelmed with meal planning, try this awesome service called $5 Meal Plan. For just $5 a month, you get an entire meal plan every week with a grocery list. The meals are delicious and cost less than $2 per person.
TRY THE $5 MEAL PLAN FOR FREE
Try the $5 Meal Plan for 14 days, completely free. It doesn’t cost anything to sign up and if you enjoy the delicious recipes, you can keep the service for just $5 a month. Worst case scenario is you get two weeks of yummy meals at no cost to you.
You also don’t have to give up eating out cold-turkey. Take baby steps. For example, if you get two cups of a coffee a day, can you lower that to one? Just lowering your coffee consumption can save you up to $200 a month. Most offices have coffee and I know they might not taste as good as a Vanilla Chai, but your wallet will definitely thank you.
Make Automatic Deposits
If you leave money in your checking account, you will spend it. It’s very hard to have any savings if you don’t differentiate the money you can and can’t spend. Set up an automatic savings account that moves money from your checking to your savings every time you receive your paycheck. If that money isn’t available to you, you will make adjustments. Most of the time, we spend our entire paychecks just because we can. We see the money available in our accounts and don’t even give it a second thought. If you are an impulse shopper, this is the first step to getting your finances in order.
Go On A Spending Freeze
Start small with a No-Spend-Weekend and see what fun and free activities you can come up with. No spend challenges are great because they get you into the right mindset to reach your goal of saving $10,000 a year. Once you spend a weekend going to the park, beach or cooking dinner you will find it easier and easier to save money and enjoy yourself simultaneously. At the end of the challenge, you’ll have a new mentality towards money and how to enjoy yourself without spending a small fortune.
Invest Your Change
At the end of the day, whatever leftover change you have, put it into a piggy bank and forget you have it. If you don’t use cash often, consider downloading the Acorns app. I have been using this app for a while now and absolutely love it. What it does is it takes the change from your transactions and invests it. Let’s say you buy a coffee for $2.50, Acorns rounds that up to $3.00 and puts the $.50 in an investments account. You can decide if you want the money invested in stocks or bonds depending on how conservative or aggressive you want to be. I personally keep my investment conservative and my spare change grows little by little with no thought or effort on my part. Get $5 Free By Signing Up Here.
It’s a great little app that you set and forget. I hadn’t checked my app in a while and when I logged back in, I was pleasantly surprised to see I had a little over $500 in my Acorns account! All from the spare change of coffees and shoe shopping.
Are you trying to save money? How are you going about it? Leave any and all tips in the comments below!