Have you wondered how you can save $10,000 in a year? It’s possible! Also, why do you want to? Well, a lot of goals and events in your life boil down to one major factor, money. It’s true that money is not everything, but it’s also true that money buys freedom and choices.
Sometimes, we need a larger quantity than usual to be able to select some of the options. I’m referring to a five-figure amount.
Perhaps you would rather increase your investment accounts? Well, saving an extra $10,000 this year certainly helps. Even if you have struggled to save your money in the past or earn a low salary, it may seem like a pipe dream. But don’t discard it yet.
Could you save $10,000 per year by saving energy and making small changes to your lifestyle? Here’s a plan you can follow to do so.
Figure out what saving $10,000 breaks down to
If you want to save $10,000 within a year, you should know how it breaks down to and what it amounts to. Cold, hard numbers stress you to save more money than a fancy certificate on the wall does. When looking at a number, you may either save it, or you may forget it.
Saving money is like losing weight. The number won’t lie. Saving $10,000 in a year would equate to $833.33 per month, which is much less expensive than someone’s monthly rent.
Minimizing expenses in intermediate quantities may seem more achievable to you than seeking nearly $1,000 a month. If you can set aside $10,000 every paycheck, that equals setting aside $384.62. If you are deciding upon what to spend, it would be necessary to find $190.30 to save.
It does not matter how many pieces you break it up into, the point is, this is what you have to hit your target.
6 Ways how to save $10,000 in a year
Now that you know what the breakdown is to save $10,000 in a year, let’s go over specific ways you can start saving!
1. Save on bills
The easiest way to save money on heating costs is to sit down and study your budget with a fine-tooth comb. Many individuals do not face a copious expenditure of funds, but twice as many are saddled with expenses that can be trimmed.
It is time to call your vendors and negotiate rates. Are there services on your cellphone bill that you are not using? Is your vehicle a beater that you are overpaying for insurance on? Look for cost savings and don’t pay for more than you need.
The biggest expenditure people have in their finances is typically housing. You could try to get a roommate or explore other options for finding a new place to rent.
2. Cut back on eating out
The best way to save $10,000 in a year is by eating more meals at home. American families spend a lot of money on dining out every year, and the average family spends thousands of dollars. Even if you are not eating at a fancy restaurant every week, coffee and lunches at the drive-through add up.
If money were not sufficient to persuade you to start bringing lunch more often, think about the calories you will be preventing from going to your waistline by not eating out so much. Start bringing a lunch and discover how to make tasty meals at home.
3. Reduce your entertainment costs
If you go out frequently, you might end up spending a lot of money every month on outings with friends. Brunch, happy hours, admission, and Lyfts can all add up close to $300 a month. I am amazed at how expensive it is for me to spend just $50 per week on activities like taking the bus to work or walking to the corner store. It barely covers one activity a week.
But I find that doing things at home with friends, such as potlucks or game nights, is more relaxing and serves as a more affordable option. Finding budget-friendly activities is how I can save 10,000 a year.
4. Finding ways to earn more is how to save $10,000 in a year faster
Many people can’t afford $833 per month to cut back on their expenses. This is a fact. I’d always encourage avoiding needless spending in order to save money (more money in the bank means more travel freedom!), but I have my own business to promote as well.
Getting paid more by requesting a raise is how to save $10,000 a year! Being Hispanic, I earn about 53 cents to a non-Hispanic white man’s dollar. I very much can’t save money. I earn very little money, so the only way to save more money is for me to earn more money.
List all of your accomplishments over the past year and ask your manager for an increase. If a raise is not in the cards, ask what can be done to get it. You may need to receive more training or skills, so ask for a performance plan to obtain what you need to take the next step in your career.
If a raise is not feasible for your current occupation or employer, it would benefit you more to search for a posting elsewhere.
Even if a promotion or new job cannot be arranged, you can still earn more money by starting a side business! In fact, the average extra job brings in $200 to $1,100 per month. We live and work in a gig economy with so many jobs that can be done from home, online, or both.
Uber is an easy way to make cash while spending time driving if you live near people and like exploring new areas. If you tend to drive very slowly, consider signing up to walk or pet sit dogs. You can also earn money by selling items obtained from Goodwill on eBay, freelance writing, or as a virtual assistant.
Side gigs require so many different skills that there is sure to be something for you. Fulfilling side gigs can earn you $10,000 in a year.
One way to save $10,000 a year is to learn new skills and earn money doing new work. I more than doubled my salary after going back to school and learning new skills. I have also built a thriving typing business by assisting other entrepreneurs.
I’m a team player, so I celebrate with my teammates when they succeed. I’m versatile and am skilled at both roles above. As you acquire new skills and discover new ways to make higher income, your options are limitless.
5. Find easy ways to automate your savings
One method I have been able to reach my savings goal, such as going to study overseas or paying a vet bill, is by automating my savings. For instance, my bank lets me transfer a dollar from my checking to a savings account whenever I swipe my debit card.
I am surprised to see that I have hundreds of dollars in my savings account at the end of the year without even thinking about it.
You can easily automate such a transaction or a smaller but steady amount each pay period, then gradually boost it as you proceed. By automating your savings, you can find $10,000 in a year without much effort!
6. Try a spending fast
One way to save $10,000 a year and jumpstart your savings to help you reach your goal sooner is to try a monthlong spending fast. A spending fast involves reducing your financial activity by excluding certain categories of spending. By organizing in advance, you can make your needs and wishes known to help you save money and time.
Many people spend just on necessary expenses such as groceries and gas while others splurge on meals out or movie tickets.
You can control your expenses by spending money on only needs and not wants. You’ll see exactly how much money you require by spending wisely.
You can also see what you throw away and what you could save by cutting costs. In addition to being a great stress reliever, you will also find ways to save more cash. All of this means more money in the bank.
Remember why you want to save $10,000 in a year
At the end of the day, much of our personal finance is emotional. We have different monetary scripts we are trying to break after believing untrue money beliefs for years. This isn’t your fault, and now that you understand better, you can do better.
Remember why you began your big ambitious goal of saving $10,000 in a year to begin with. Was it to travel? Maximize your retirement to help you achieve financial independence faster? A college fund for your children? Or were you aiming for the down payment on the little house around the corner that keeps making your heart sing?
Whatever your reasons might be, always remember that you are worth it. It’s fine to put your needs and desires first. This doesn’t mean you are selfish or greedy. Taking care of yourself allows you to be at your most capable self and, as a result, give even more to others.
Only if you are prepared with knowledge can you be helpful. This sentiment looks different for everybody, but you know it in your heart.
Accomplish your goal and save $10,000 in a year!
Now you know the most efficient way to save $10,000 in a year! A lot can change over time. Saving $10,000 a year doesn’t have to be unrealistic.
It could save you a significant amount of money by going with the plan, producing additional revenue, and restarting your belief in yourself. Enroll in our free savings challenge package today!
Once you have your savings outlined, you can then take strategic actions to build up that $10 to $100. You can additionally master vital guidelines to produce $10 a month!