How To Save $10000 In A Year (Without Too Much Effort)
Do you want to know how to save $10000 in a year?
One of the hottest topics in finance blogging right now is how to save money quickly. If the 2020 pandemic has taught us anything, it’s that we truly never know what is around the corner.
So many of us hit bumps in the road that mean we need access to cash and quickly.
It might be to:
- replace a new dishwasher,
- repair a broken-down car,
- put down a deposit for a first home, or
- pay for that much-longed-for holiday
- a health crisis that needs paying for, or
- you want to pay off a big slice of your student loans in one go
In this post, I’ll walk you through ten clear and common sense strategies that will help you to save $10,000 in one year.
One significant piece of advice I would give to you is to work towards this type of savings goal only once you are out of debt.
Unsecured debt especially is a financial burden that is better dealt with now. (because the interest on debt will keep dragging you back)
Remember: work on your debt first and savings second, aside from keeping any emergency fund topped up.
Quick summary of tips how to save $10000 a year:
- Update your budget
- Map out your financial journey
- Make a savings goal
- Set yourself no-spend days
- Reduce the excess
- Invest your savings
- Automate your savings by making automatic deposits
- Create ways to earn more
- Track your progress
- Have an abundance mindset
Some of the links on here are affiliate links and I may earn if you click on them, AT NO EXTRA cost to you. Hope you find the information here useful! Thanks.
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How To Save $10000 In A Year
If you were to break down how to save 10000 in a year, what would it look like in relation to a weekly or monthly income? How much would you need to save per day, per week, per month?
Many of us work for:
- 261 days per year
- working 44 hours a week
- for 8.8 hours a day (stats from Bureau of Labor Statistics).
Working an average of 261 days per year, the average American would need to aim to save $38 per working day.
If you spread that saving goal across all 365 days a year, you would need to save $27 per day.
Either way you divide it, you need to be saving $833 a month in order to hit your target saving. For many people, that level of saving on a daily basis can feel immense and overwhelming.
My tips and strategies will tackle that overwhelm head-on by suggesting strategies to increase your income, as well as numerous ways to reduce your spending.
Let’s get into the finer details on how to save $10000 in a year.
1.Update Your Budget
Whenever I see the question, “How can I save 10000 in a year?”, the first thing I want to ask that person is what their budget looks like.
- Do they have any idea of their income and expenditure?
- Are they aware of every single transaction occurring in their accounts?
- When was the last time they audited their personal finances?
It’s time to get real and be honest. Own up to those daily takeaway coffees. Admit to that gym membership that simply isn’t worth the money you’re paying every month.
Be honest that you can’t account for every direct debit that you have set up over the last year and you have no clue how much your current car insurance is costing…
Block out a day with no distractions and go through your accounts with a fine-tooth comb. Look at every single transaction. Check it against your receipts if you have them.
Examine all of your regular outgoings, direct debits, and standing orders. Spend time canceling subscriptions that you no longer use or need. Review your utility company deals and move to new deals to reduce your outgoings.
Make sure your budget is 100% up-to-date and set a regular weekly date with yourself to review it and keep track of your spending.
Here’s another great article I wrote about budgeting!
2.Map Out Your Financial Journey
It’s vital right at the beginning of your saving journey to establish your WHY.
What are you saving for?
This will be your motivation in the middle of your saving journey and your friend offers you a cheap spot on their holiday. Or your car begins to show signs of fading and you are offered a great deal from a local establishment.
You might decide to focus your goals around how to save 10000 in a year bi-weekly.
Whatever method you choose, setting goals and drawing up how to get there will be a motivation that you can keep referring back to throughout the year.
3.Make A Savings Goal
It may be that you don’t need to save as much as $10,000 a year. You may have a smaller goal in mind. Whatever your goal, be realistic and be clear with yourself.
Break your goal into chunks. Set smaller monthly targets based on the breakdown of your final goal.
Keep your eye on the prize.
If you know your motivation and your why, you can constantly refer back to this when things are tough. Write it on your mirror. Print it out and stick it on your bedroom wall. Stay in the game and stay focussed.
I have it written in my spreadsheet which I update every month. A big saving amount I am aiming to tackle.
4.Set Yourself No-Spend Days
Changing habits is a key part of establishing discipline in your financial life and having periods of time where you spend nothing outside of your essentials (housing, food, core bills) is a great starting point for building good financial habits into your everyday life.
No-spend days are an excellent discipline to create for yourself. Some people even set themselves a no-spend month once a year!
Thousands of us love to eat out multiple times a week, be that lunch or dinner. The average household spends around $58 a week eating out. That’s a whopping $3,000 a year! And without a doubt, some of us spend way more than that every week.
Cutting out eating out and take outs could make huge savings for someone who does this more than once a week! Use this year as a time to focus on improving your home cooking skills instead!
Meal planning, meal prep and batch cooking are all brilliant ways to keep home cooking simple and inexpensive. You don’t want to swap your eating out costs for expensive impulse food buys at the grocery store because you’re hungry and don’t know what to cook!
I’ve pulled together some simple and inexpensive recipes here for you to take advantage of as you begin your new home cooking regime.
5.Reduce The Excess
One of the best ways to answer the question, “How can I save $10000 fast?” is to reduce the excess you are spending every week. A great place to start to reduce your excess is to cut back on non-essential bills.
Many of us would consider the internet essential in 2020. However, it is possible to live without it and could even be a recommended reduction if you don’t have to have it at home for work. Check out my suggestions for ways to live without the internet at home!
Make days you are out at work ‘No Spend Days’ where you take your own lunch and avoid the takeout coffee shops.
Cut back on your entertainment expenditure:
- Drop your cable package down a level
- Trade in your cell phone deal for a less costly bundle
- Have at-home movie nights instead of going out to the movies
- Stick to the free music and tv streaming channels rather than always choosing premium.
Here are some extra Money Saving Hacks!
You can also try using the money-saving app Trim, which analyzes your spending habits and negotiates on your regular outgoings, cancels old subscriptions, and offers you savings suggestions based on the data you enter.
6.Invest Your Savings
Learning how and where and when to invest will be a huge boost in your quest of how to save 10,000 in a year.
Compound interest is key to making your money work for you and the longer your money is in a compound interest account, the more time it has to work hard for you.
7.Make Automatic Deposits Into Your Savings Account
Did you know that you can set up automatic transfers to move your excess income to your savings account?
You could even set up your checking account with a direct debit to transfer 10% of your income, every month on payday into your savings account.
This is an especially good idea if you have plenty of excess income in your budget once you have accounted for all your outgoings. Put the extra away and forget about it! It brings less temptation and facilitates simpler success.
8.Create Ways To Earn More
When it comes to answering the question, “How can I save 10000 in one year?”, one of the key ways is to increase your income. Increase your income in your current job or find one that pays better.
It sounds obvious, but starting where you are is probably a sensible option for many people. Approach your boss for a raise, or increase your freelance rates.
In both cases state the reasoning behind your request for increased pay. You’ll be surprised how far a little chutzpah will get you!
- Do you love to upcycle furniture?
- Do you have a flair for writing website copy, or
- helping people with their social media accounts?
- Do you enjoy filling out surveys or couponing?
Turn your passions into money-earning side hustles! I wrote about some great ways to increase your income here.
While some of these may not help you to get rich quickly, they are all valid ways to earn a little extra cash. And cash adds up as you begin to put it away. Just make sure you don’t spend your little bit extra!
A side hustle doesn’t have to be something that is a chore, or even that you do in every moment of free time. You could allocate one evening a week, or every other weekend.
Little and often works well for many people. It’s eating the proverbial elephant, one bite at a time.
9.Track Your Progress
Tracking your savings goal is going to be key over the next twelve months.
As a clear goal creates and sustains your motivation, having clarity on your progress will enable you to see where any leaks might be and what actions you need to take.
There are many ways to track your financial goals. I have included a number of budget charts and spreadsheets below. You can work with whatever suits your lifestyle. Some people prefer digital spreadsheets, whilst others prefer a printable budgeting chart.
Whatever you choose, make sure to review it regularly. Some of the most successful savers look at their income and expenditure every single day. Try a few different ways and find your sweet spot.
10.Have An Abundance Mindset
Mindset is huge in the online space at the moment. Everywhere you turn there is a coach or guru telling you it’s all about having a positive, wealth-creating mindset.
And when you read the stories behind the wealthier members of society, you begin to understand the truth in what they say.
Steven Covey’s incredible best-selling book, ‘7 Habits of Highly Effective People’ goes into detail about the value of having an abundance mindset versus a scarcity mindset.
So much is about training your mind to believe what can be. This piece in Forbes is an excellent starting point.
Invest in your long-term happiness.
This whole exercise doesn’t have to be about scrimping and saving every single penny you see come into your bank account. It doesn’t mean giving up on your dreams or eating dry bread for a year!
It’s about giving yourself space to improve your finances and see those big dreams coming to fruition.
I recommend reading up some more about wealthy people and their healthy financial habits:
11.Budgeting Charts And Spreadsheets
This will provide you with everything you need to get started. Use a printable or digital budgeting how to save $10000 in a year chart that will track your income and expenditure and hold you accountable to your goal.
Here are a few printable savings charts that you can check out:
- Money Challenge Savings Charts are wonderful resources from Decluttering Your Life for those looking to create a printable budgeting tool.
- MoneyChallenge.com offers a hybrid chart that can be completed online and printed out for ease of review.
- This is a brilliant, highly customizable tool from undebt.it. This one isn’t printable but is a great tool for those who prefer to work on their budgets online and is an excellent ‘how to save 10000 in a year chart’.
I’ve given you ten concrete steps for how to save $10000 in a year, plus some excellent budgeting tools that will help you on your way to your saving goals.
My bonus tip is to focus on the first $1,000. Make sure you work through all of the steps detailed above. But start with a first-stage, lower target. Once you have crossed the $1k, that $10k goal will seem much less daunting!
Start today! Don’t delay out of fear or complacency. The sooner you begin, the sooner you will reach your goal. I wish you all the luck in the world!
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