Wouldn’t it be great if you could save $10,000 in a year?
Have you ever wondered how to save $10,000 in a year?
It’s not too hard to save $10,000 in a year if you’re willing and ready to put in time and effort.
Many people wonder how they can save money or at least get on the path towards saving. Many of us have been there and know exactly how hard it is to stay motivated while trying so very hard. We also know that we can do it with a bit of effort, but is it worth the effort.
In general, I think it is worth it. Sure, we do not ALWAYS want to be cutting back on this or that. There are times when we would love to throw out our budgets and spend money freely!
But for the most part, trying hard to save money is well worth it.
Is spending time looking for ways to cut back going to pay off in the long run?
If you’re saying yes, then read on because I’m about to tell you how to save $10,000 in one year.
In this post, I’ll show you ten ways that will help you save $10,000 in a year.
How to save $10,000 in a year (10 ways to get started)
- Have a goal in mind
- What does saving $10,000 break down to in a month
- Update your budget or create a monthly budget
- Lower your expenses where necessary
- Automate your savings
- Invest (if you know what you are doing)
- One way to save $10,000 in a year is by finding ways to earn more money.
- Have no spend days
- Track your progress
- Celebrate small victories along the way
- Final thoughts
1. Have a goal in mind
You have to have a goal in mind before you start saving money; otherwise, it’s just going to be a lot of work with no result. You know that if you do not set a short-term goal that you can easily reach, you’ll lose the motivation to keep trying and return to your old ways.
What will you do with the money?
Saving $10,000 in a year is usually for small indulgences or big-ticket items like:
- much-anticipated vacation
- New car
- Down payment on a house
- Emergency fund
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Can you save $10,000 in a year?
The answer is Yes! Anyone can save $10,000 in a year if they work hard enough. There are many ways to save money, and anyone can find a way that works best for them.
Whether it’s cutting back on eating out so much or cutting cable TV out altogether, there’s always something you can do to make your life easier and save some money in the process.
How can I save $10,000 in a year?
Many people don’t think they can save $10,000 a year, but the more you put your mind to saving money, the more you will find ways to save.
It is easy to look at your monthly spending expenses and cut out some things you think you cannot do without. You can start by cutting out or reducing your daily/weekly coffee or lunch runs.
You’ll also be surprised at how much waste there is in areas that you’ve not thought of saving.
2. Figure out what saving $10,000 breaks down to monthly
What does $10000 break down to monthly?
This number may seem daunting at first, but there are many simple steps you can take to save that amount. You may not save $833 every month, but this is an easy way to look at things and work from there.
The trick to saving $10,000 in a year or less is breaking that number down into achievable savings goals.
For example:
| Time | Amount |
|---|---|
| Daily | $27.40 |
| Weekly | $192.31 |
| Bi weekly | $384.62 |
| Monthly | $833.34 |
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3. Update your budget or create a monthly budget
If you don’t have a budget, create one. Check out my post on how to start budgeting for beginners. It walks you through the process with straightforward steps. I’ve been using it personally as well, and I can save at least $400-500 per month just by checking my spending habits.
If you have a budget, review it. Are you following your budget? You may not save as much as you need or want to, but take a look at where the money is going!
A budget is not something that should cause you stress but be honest with yourself. If you don’t have a realistic budget, the chances are that you will not stick to it. Check out my post on 30 ways to save money to find ways that are possible for your lifestyle and check them off as you go.
It’s not always easy but sticking to a budget and learning how to manage your money instead of letting it control you is the best thing that you can do for yourself.
4. Lower your expenses where necessary
Now it’s time to lower your expenses where you can.
Look at your monthly expenses and ask yourself if it’s worth it for the service/product or if an alternative would work just as well for a lower price.
Think about the little things you do every day that cost money but don’t need.
A great way to start cutting expenses is by lowering your bills.
To cut your bills, the first thing you need to do is figure out the most costly expenses you can lower or eliminate and then call up those companies and negotiate.
For example, I used to pay $75 per month for internet because I had to have 150mbps upload even though I didn’t use that fast upload. I understand we all want conveniences, but why pay more than you have to? I called them up and said, “I’m going with your competitor unless you give me a better deal.” After that, they gave me the same 150mbps upload for $33 for six months.
I reduced my auto insurance bill by $50 per month by calling around to find the best rates. It’s a savings of $600 per year! That’s $600 towards my savings goal of $10,000.
5. Automate your savings
Find ways to automate your savings. I automatically take 10% of every paycheck and deposit it into my savings account.
Getting the money out of your hands is an excellent way to avoid problems. When you don’t touch it, you won’t miss it and want to spend it on things that aren’t important.
Some banks automatically transfer a set amount of funds from every deposit to your savings account. Or round of your purchase to the nearest dollar and deposit the change in your savings.
6. Invest your money (if you know what you are doing)
Investing is risky if you don’t know what you are doing. Investing your money can yield compound interest which can grow your money very quickly. Investing is a broad topic, and I’m not going to go into the details here.
If you want to learn more about it, there are plenty of resources online which can teach you how to invest for beginners.
7. One way to save $10,000 in a year is by finding ways to earn more money.
If there is absolutely no way to save $833 per month on your current income even after cutting expenses, consider starting a side hustle.
The idea behind a side hustle is that it allows you to pick up extra income even if you are working full-time already.
What are you good at doing? Today, I was searching for a Physics tutor for my daughter, and I received a $60 an hour quote. That’s a pretty penny for an hour of work, but that was too expensive. If you are good in a particular subject area, why not start a tutoring business.
If you are good at programming, then freelance work is one option that you can do. There are plenty of sites online which will help you find clientele. If you are not interested in self-employment, work for a company like Lyft or Uber as an independent contractor.
Saving $10,000 in a year is not easy for anyone, but side hustles can help you get there faster.
The good news is, there is an abundance of opportunities out there to make extra cash.
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8. Have no spend days
A no-spend day is a time you decide not to spend money on a specific day or a time except for emergencies.
When you want to cut down on your expenses as much as possible, no spend days will help you reach your goal faster.
How to do a no-spend day?
Just decide what you’ll be doing with your time on that day and tell yourself, “I won’t spend money.”
It’s not easy, but it can be achieved if you set up rules and follow them.
If you need something for your activity, borrow it from someone. Your friends are often more than willing to lend out the things they don’t use anymore. So, sticking to a $0 price tag will dramatically help towards reaching your goal.
9. Track your progress
Staying accountable to oneself is essential when trying to save $10,000 or more in a year. One of the crucial steps is to track your progress with at least monthly reports that detail exactly how much you have saved.
Tracking your progress will motivate you to save and help you set new, higher saving goals. The more progress you make, the bigger your motivation will be and the easier it will be for you to reach your goal of saving $10,000 in a year.
I use a progress tracker (you can download it here) to track my savings. You can use what works best for you, whether it is: listing your progress in a journal, recording your savings on spreadsheets online or offline (there are many free Google Sheets templates you can use to customize), marking off saving amounts on a calendar, etc.
10. Celebrate small victories along the way
Celebrate your milestones and wins with a reward. I don’t recommend buying yourself something every time you reach $1,000 saved as it is too easy to get carried away and buy things you do not need or want.
However, once in a while, find a fun free activity of your choice- just because you’ve saved money. Or you can go to dinner to celebrate reaching a milestone.
Budget spreadsheets and expense tracker
If you haven’t already, use a budget spreadsheet or expense tracker to track all your spending.
If you want a detailed monthly budget template, sign up for our newsletter and get your free copy!
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Final Thoughts on how to save $10,000 in a year
When trying to save $10,000 in a year, you have many different ways to accomplish this goal. There’s no one way fits all.
The important thing is that you find a way that works for you.
If you stick to saving, you’ll be a lot happier in the long run.
If you are saving $10,000 in a year or less, we would love to hear about your journey. If there are other ways you have used to save $10,000 in a year, please share in the comment section below.
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