How To Save 10000 In One Year (2021 Edition)
You’re probably here because you searched the term, “how to save 10000 in one year,” or something along the lines of that.
Saving $10k a year may seem like a hefty savings goal, but it’s absolutely achievable.
And don’t worry, you won’t be living off pot noodles or skipping your coffee.
Instead, we’ll look at incorporating smart habits into your schedule that won’t overwhelm you. So, you were looking for how to save 10000 in a year?
Well, let’s get into it!
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
How Much Do I Need To Save For 10,000 A Year?
The question, “How can I save 10000 in one year?” is a pretty hot topic in the personal finance world and for a good reason.
Whether you need it to:
- cover costs,
- you’re saving up for retirement, or
- your emergency fund,
there’s a lot you can do with an extra $10,000 a year or in general.
But the number itself can be daunting.
How on earth are you going to save that much in a year? Don’t fret, I’ve got this worked out for you.
To make this task a little less scary and more achievable, let’s break down the amount. Breaking down your goal into small pieces makes it more possible to reach your goal.
The goal is $10,000 in one year right?
That gives you 12 months. Let’s look at that monthly breakdown: $10,000 divided by 12 (months) equals to $833.34 a month.
Still too daunting?
Let’s break it down some more, this time by weekly goals: that adds up to $192.31.
Does that number still leave you feeling unsettled?
No problemo. We can break it down to a daily savings goal, which adds up to $27.40 a day.
There, that doesn’t look so terrifying anymore, does it? Here’s a wrap up of your savings goal breakdown:
Monthly savings goal: $833.34
Biweekly savings goal: $384.62
Weekly savings goal: $192.31
Daily savings goal: $27.40
Maybe you’re thinking, “How am I supposed to come up with that money in a month? Let alone 2 weeks?”
If you want to know how to save 10000 in a year bi weekly, have a look at this article that will help you make 300 dollars in a Week (rinse and repeat and you’re well ahead of your bi weekly savings goal).
A List Of Ways On How To Save 10000 In One Year:
There are plenty of things you can do and learn that will teach you how to save 10000 in one year, the question is are you willing to?
Saving $10k in a year doesn’t happen by accident (as much as you wish it to).
It takes planning, patience, and perseverance. Here are some tips to help you reach your financial goals:
- Pay yourself first
- Decide & commit to your goal
- Get a savings account (with compound interest)
- Stop making excuses
- Go over your expenses
- Find ways to earn more
- Save your leftover money
- Celebrate your milestones
- Take a course
- Get some help
1.Pay Yourself First
First and foremost, you must pay yourself.
What does this mean?
Whenever you get our salary, before you do anything else with that money, set aside the amount you need into a savings account to reach your goal.
That’s right, before you pay any bills, spend it on food, fun, or entertainment, stash that cash and live off the remainder.
This might seem a little odd for some. I chalk this up to how we’re taught to save.
Often, people spend what they need in a month and put away whatever’s left. And although this is a valid way to save, this isn’t how you’re going to reach your goal.
Because it’s the lowest priority on your list. Simple as that.
If you want to achieve your goal, you need to prioritize these monthly/weekly/daily savings amounts. So, when you get paid, send your desired amount to your savings account.
Save it before you spend it. Out of sight, out of mind right?
2.Decide & Commit To Your Goal
You have a goal and a timeline to achieve it but that isn’t enough. You need to have discipline and commitment.
You need to start by consciously deciding that you are going to do anything and everything to reach this goal.
Unless you win the lottery, you aren’t just going to come into $10,000. Remember, this is only a one year goal.
You can tough it out!
3.Get A Savings Account (With Compound Interest)
Let your money grow without doing a thing and find a bank that has a savings account with decent compound interest. (in today’s tough market, anything more than 4% is decent)
This is one of the most passive ways you can make your money work for you without investments.
4.Stop Making Excuses
You want to save $10,000 in a year but “you don’t have the time,” or “you’re too busy”? Excuses, excuses. I’m not going to sugar coat things for you.
This goal is totally achievable if you put in the work and stop making excuses.
The time you spend watching TV or scrolling through your instagram feed can be better utilized.
Even if you’re a busy parent, that’s not an excuse. There are thousands of parents that have managed to save and pay off huge amounts of debt.
There are plenty of resources and side hustles that can help you reach your goal. Have a look at these articles if you’re a Mom or Dad looking to save $10k in one year:
5.Go Over Your Expenses
Now that you’ve got your head in the game, the best way to start your journey is to go over your expenses.
This is the easiest way to find that pesky $833 before you take any other steps.
Look over your expenses and see what you can do without. Cut out the wants and only keep what you need.
Is there a service you’re not using? Are you paying for a gym membership you don’t use? See what costs you can cut and pay for what you need only.
Rent is a significant expense in everyone’s monthly bills, if you can find a roommate to split the costs with, I say go right ahead.
It’s only for a year right?
The other thing people spend most on? It’s food and entertainment.
Here are a few ways you can save money and cut costs on the food category:
Cut Back On Eating Out
Even if you aren’t getting take out or dining at fancy restaurants weekly, coffees, snacks, and lunches add up.
When I was going over my budget, I realized I was spending an extra $40 on snacks.
It was a real eye-opener and cutting that cost made my savings grow and my belly shrink (who said there weren’t health benefits to saving?)
Start learning how to cook and meal prep to save money!
Tip: Look at weekly deals and coupons to maximize savings.
Buy In Bulk
Grocery shopping can be expensive if you don’t know where to shop. Grocery stores like Costco and Makro offer huge deals if you buy in bulk.
If you’ve bought things in bulk, you may run into the issue of having too much on your hands and possibly food spoiling before you get the chance to eat it.
You can counter this problem by freezing things like veggies, fruits, pasta, etc.
Here’s a guide to help you figure out what freezes well and for how long.
Now that you’ve identified your costs, it’s time to embrace the B-Word.
By this I mean budgeting.
I can hear the chorus of sighs already. I know, nobody likes adhering to a strict budget but guess what?
Good things happen when you create and stick to your budget (good things equals an extra $10,000).
This will ensure that you won’t spend beyond your means and you reach your monthly goal. It also takes the guesswork out of saving, which will in turn reduce stress.
Some related articles to saving money and budgeting:
- What Is The Purpose Of A Budget?(And How Can It Help You?)
- Sinking Fund Categories That Will Help You Create A Better Budget
- 15 Reasons Why You Can’t Save Money
- 21 Essential Frugal Living Tips
7.Find Ways To Earn More
“But Aisha, how to save 10000 in one year when I don’t even make nearly enough to put $833 away each month?”
I know a lot of people don’t have that kind of money to cut from their monthly expenses.
Cutting expenses from your budget is just one way you can reach your goal. The other way is to earn more money.
You can’t save what you don’t earn, right? Here are a few ways you can earn more:
Ask For A Raise
Can’t take up an extra job and your current job isn’t paying enough to meet your financial goals?
Try asking for a raise.
Don’t go empty-handed, either: start by making a list of all your accomplishments and see if your employer is willing to give you a raise.
If they say no, ask them what you could do to get one. for the past year and ask your boss for a raise.
If a raise isn’t feasible, ask how it could be.
Pick Up A Side Hustle
If a new job or raise isn’t in the cards, don’t worry.
You can still make more money on the side by picking up a side hustle. We live in a digital age, a second job doesn’t have to mean another nine to five desk job and no sleep.
You can easily start working from home and earn extra cash doing it.
Where can you find resources to help you jumpstart your side hustle? I’ve got a few helpful articles that’ll walk you through everything you need to know right here:
- Best Freelance Jobs for Beginners: All You Need To Know
- 20 Best Stay At Home Jobs
- Jobs for Lazy People
8.Save Your Leftover Money
Wait what? Yes, I know we talked about saving your money before you spend any of it, so what is this doing here?
If you want to meet your financial goals, every little bit helps.
Anything you have leftover at the end of the month is worth adding to your savings so you can maximize your progress.
Plus, it will make it go faster and take off a bit from next month (or week or days) quota.
Imagine how much faster you’ll be able to meet your goal if you start and end the month with saving?
9.Celebrate Your Milestones
Be kind to yourself while you’re trying to save that $10k.
You can run the risk of burning out if you take on too many things all at once. So, pace yourself.
Side hustling, budgeting, cost cutting, all of that is important but try to avoid burning out in the process.
Celebrate your milestones with a little fun.
It doesn’t have to cost you any money either. You could take yourself out on a date, have a spa day at home, make breakfast for dinner, whatever tickles your fancy.
If the 2020 pandemic has taught us anything, it’s how to have fun with what you have in your home and to enjoy the little things in life.
10.Take A Course
Did you know that online courses will teach you how to save $10000 in a year?
The internet is a wonderful thing with vast resources made available to us -all you have to do is look for them.
There are plenty of FREE Personal Finance Courses & Resources online.
Courses like these on clevergirlfinance.com are permanently free. They believe that financial literacy doesn’t have to cost you and they want to help you improve your financial health with 30+ free courses!
The courses include bite-sized videos, live call replays, worksheets, free mentor calls, and an epic community.
Here’s a peak at what you can find on their website:
Take this course for instance. If you click on it, you’re immediately met with the free course content.
They even have courses on how to invest and increase your income streams, all for FREE!
11.Use A Save $10,000 In A Year Printable Chart
Keeping track of your progress is important and I’m not talking about checking on your bank account every so often.
I mean being vigilant and having a constant physical reminder.
Keep your eyes on the prize and look up “how to save 10000 in one year chart” or “how to save 10000 in a year chart,” on the internet to find yourself a printable chart that’ll keep you on track with your savings.
Just be sure to put it somewhere that will catch your attention.
Save $10000 in a year with the help of these printables:
For $3, this 10K Money Saving 52 Week Challenge Printable Savings Tracker comes in a sleek minimalist design with varying amounts.
This $2.5 10K Emergency Fund Printable Savings Tracker is a bit more rigid and has $100 savings goals.
And for the low price of $1, you can purchase this 10K Savings Challenge Printable Savings Tracker.
And there you have it folks, how to save 10000 in one year in a nutshell.
When you’re starting out in your journey, that $10k amount can seem like an impossible mountain to climb.
But if you take it one step at a time, stick to your budgets, and continue to persevere, you’ll find yourself on top of that mountain in no time!