It may seem daunting to save $10,000 in a year. It may seem impossible. Imagine how beneficial it could turn out to be!
There would be no need to worry about running out of money in an emergency. You could go on that dream vacation. You would be closer to achieving your most important financial goals like paying off student loan debt.
It is possible to save $10,000 per year if you have the right strategy and discipline. We will show you how to make it happen.
The Realistic Way to Save $10K in One Year
Ten thousand dollars is a lot to consider. Let’s break it down into smaller chunks.
You will need to save $833.33 per month if you want to save $10,000 over a one-year period.
This is still a large number, so let’s break this down further. To reach your $10,000 savings goal, you would need to save $192.31 per week or $27.40 each day.
Another way to view it: If you receive a paycheck every two weeks, you would need to set aside $384.62 for each payment.
You can divide these amounts by 2 if you are pursuing this savings goal together. To reach $10,000, you would need to save $416.67 per month, $192.31 biweekly, and $96.15 each week, or $13.70 per day.
Keep your ‘Why’ in mind
Before you set out to achieve your savings goal of $10,000 per year, you need to understand why.
When you are tempted to give up on saving $10,000, it is worth reflecting on the reasons you have.
A $10,000 increase in your bank account could help you get on the path to financial freedom. Perhaps your emergency fund is small and you need a larger financial cushion to fall back on. You might also want to pay off student loans or credit card debt so that you are debt-free.
You might need seed money to start your own business or to travel the world. You could become financially independent by having a large savings account.
You can use it to pay a downpayment on a house, for a wedding, or purchase a brand new car. It can be used to finance major home improvements.
You could use the cash to pay for your baby expenses, fertility costs, or adoption costs if you are expanding your family. If you have children already, $10,000 could be used to help with their college fund or future financial security.
Perhaps you would like to add $10,000 to your retirement savings or investment accounts. There are many options.
It is important that you have a reason for saving $10,000 per year and that you keep that in mind throughout your savings journey.
16 Ways to Save $10,000 a Year
Once you know how to set aside this goal and have a solid reason why you are saving money in the first place. Now it is time to look at all the steps you can take to save $10,000 a year.
1. Make a budget
You need to be aware of your income and expenditures in order to reach your ambitious goal of saving $10,000 per year.
If you don’t have a budget yet, now is the best time to create one. Add all of your monthly expenses and bills to your monthly income. You should be left with a positive number, not a negative. This means that you have enough money in your monthly budget to save money without having to take any additional actions.
Even if your number isn’t high or negative, it doesn’t mean that you won’t be successful in reaching your savings goals. These tips will show you how to reduce expenses, earn less, and save more.
2. Take Care of Yourself
We save money too often by not spending the extra cash in the end. Savings can only be won if you prioritize your goals and make sure that you pay yourself first.
Your savings goal should be treated as a monthly bill that you must pay. Transfer money to your savings account at the beginning of each month, or when you get paid. This will prevent you from spending money that you don’t intend. You can even set up automatic transfers so that you don’t even have to think about it.
Keep in mind that the goal is to have $833.33 each month available for savings. However, if your financial situation doesn’t allow you to make that happen, don’t panic. These tips can help you cut your spending and increase your income.
3. You can also open a separate high-interest savings account
It’s best not to tap into your rainy-day fund and derail your goal. Instead, save your money in a separate account you don’t access often.
High-yield savings accounts are accounts where you can earn compound interest on the money you save, usually at a higher rate than regular savings accounts and checking accounts.
You can also earn interest on savings by opening a money-market account or a certificate for a deposit (CD), which will last 12 months.
4. Adjust your tax withholdings
You are withholding money from your paychecks if you receive a large tax refund each year when you file your annual return. This is sometimes called giving the government an interest-free loan.
You can increase your income by adjusting your tax withholdings. However, you won’t get large tax refunds. Instead, you can save the extra money each paycheck to reach your $10,000 goal.
5. Keep track of your spending
It’s crucial to keep track of your spending as you embark on your financial journey. Do not wait to see your checking account at the end of each month to discover that you are overspending.
You can track your spending using a budgeting app or binder, and you’ll always know where your money is going.
6. Reduce your largest expenses
You can make a big difference in your savings goals by cutting back on the largest living expenses. The majority of monthly expenses for a household are housing, transportation, and food.
Housing: Save Money
Although it is not an easy move to make, big moves can produce great results. You can cut down on your housing costs by sharing a room with someone, renting space on Airbnb, or negotiating with your landlord to refinance your mortgage.
Transport: Save Money
You can save hundreds of dollars each month by switching from a two-car household to one. You can save a lot of money by refinancing your car payments or trading in your wheels for a more affordable vehicle.
This article will show you how to save gas and money on your transportation costs.
Food Shopping: Save Money
You must eat. But, there are ways to reduce your food spending.
Start meal planning if you frequently eat out. This will ensure that you always have food on hand for when you aren’t feeling like cooking. Instead of dining out with your friends, hold potlucks at home. To make the same dishes as those at your favorite restaurant, look up copies of recipes.
There are many ways to save money on grocery shopping. There are many ways to save money on groceries: using coupons and cashback apps; buying in bulk; buying generic brands over name-brand food; and sticking to a shopping list.
7. Lower Other Recurring Charges
You can save money by reducing recurring bills. These are the ways you can save money on your daily utilities, cell phone, cable, and internet bills, as well as gym memberships.
Save money on your utility bills
You can reduce your energy costs by setting the thermostat right, changing your filters frequently, and sealing any drafty windows and doors. Your water bill can be reduced by taking shorter showers, running water-saving faucets, and using the dishwasher to wash dishes instead of hand washing.
For more information on how to save money on utilities, see this article.
Cell Phones: Save Money
You won’t have to pay more than $100 for your cell phone bill. To save money, switch to Tello or Mint Mobile, a discount mobile phone carrier.
Cable: Save Money
To cut down on cable costs, you can disconnect the cord. You don’t need to miss live TV or NFL games with certain streaming services.
These TV apps are free and allow you to watch movies and shows at no cost. You can also visit the local library and request DVDs of your favorite television series or films.
Internet Service: Save Money
You can save money by switching to a lower-tiered plan, but you may not want to compromise your internet speed. Compare the offers from your competitors and think about switching to another internet provider. Sometimes, just calling your current company to let them know that you are switching may be enough to get a discount.
Get a Gym Membership for Less
Even if you don’t go to the gym as often, gym memberships can be expensive. To save money, you might consider setting up a gym at home or borrowing equipment from local parks.
8. Enjoy Free Entertainment Ideas
You can reduce your entertainment expenses and make the most of your time by doing free activities. Spend more time outside. Participate in free festivals and events in your area. Visit a place you haven’t been to before. You can host a movie marathon with your friends or karaoke evening at home. You don’t have to spend money on many things.
9. Bartering for Goods and Services
Bartering is a better option than paying for what you don’t want or need. You can ask your neighbor to cut your grass for you in return for free babysitting.
You might be amazed at the things you can barter if you think creatively. Bartering with other people in your local neighborhood or Nextdoor group can be done.
10. Join a Buy Nothing Group
You can also get items for free by joining Buy Nothing Groups. All items are offered as gifts or donations to charity.
Craigslist, Nextdoor, and other similar platforms allow neighbors to offer free items.
Check to see if there is a way to get it free before you buy anything new. You might find great items.
11. A Savings Challenge makes saving money fun
Participating in these challenges can help you save money immediately.
- No-Spend Challenge Stop spending extra and stop buying anything for one month or more unless you absolutely need it. You could also choose to limit your spending on one online purchase, such as no new makeup or games purchases for the next 90-days.
- $5 Challenge When you get cash back on a purchase, you can put any five-dollar bills into savings. You can transfer $5 from your checking to your savings account every time you swipe your debit card.
- Pantry Challenge – Challenge yourself to make meals from what’s in your kitchen, pantry, and freezer. You may need to be creative!
12. All Financial Gains Can Be Saved
You should save every unexpected amount of cash you receive on your quest to save $10,000. You should save any unexpected cash you receive, such as a bonus at work or a tax refund.
13. To keep you on track, enlist an accountability partner
An accountability partner, someone who understands your savings goals and the reason you are saving $10K, can help you make better money decisions. You can choose a friend, family member, or an online buddy from the Penny Hoarder Community to keep you motivated. They will regularly check on your progress and send you encouraging words.
14. Celebrate your wins
It is an ambitious goal to save $10,000 per year. As you work towards financial success, you deserve to be rewarded.
You might want to celebrate your personal financial goals every month, or when you reach a milestone like saving $2,500, $5,000, and $7,500.
You should make sure that whatever celebration you choose doesn’t distract from your goal to save money. A glass of champagne and a day at the spa are great treats that don’t cost a lot.
15. Bring in Extra Income
Sometimes, cutting costs won’t be enough to reach a savings goal. Another way to reach the $10,000 summit is to make money.
This savings challenge will be easier if you reduce your expenses and earn more money. Think about it: Instead of saving $833.33 per month, you can save $400 each month and work hard to earn an additional $433.33 every month.
Earn Extra Hours at the Office
Ask your manager if it is possible to work more hours if you are working an hourly job. Ask your coworkers to contact you to take their shifts on the days they aren’t available.
Ask your manager if you can take on more responsibilities if you are a salaried employee for a raise.
Ask for a Raise
You might consider asking your employer to give you a raise if you have a strong track record at work. Are you unsure how to begin the conversation? Our guide will show you how to ask for raises.
Find a better-paying job
A new job is often the best way to increase your salary. This story is about a woman who saw her salary increase by 39% in just over a year because she switched jobs.
To get your employer to offer a better salary, you can also use a job opportunity from another company.
Side hustle
A side hustle can help you make hundreds of dollars per month, in addition to your primary source of income. This list contains the top side gigs that can make you money.
Earn passive income
Passive income can be money that you make while you sleep. It doesn’t require any effort beyond what it takes to create the income stream. Earn money even while you sleep.
These passive income strategies will help you earn additional income to reach your $10K goal.
16. You can sell items around the house
Selling unused items around the house is another way to make extra cash. You could sell anything, from clothes and toys for kids to furniture and sports equipment. You don’t need to hold a garage sale. These apps and websites are great for selling items online.
Frequently Asked Questions (FAQs).
These are the three most common questions people ask when they think about saving $10,000 per year.
What amount of money do I need to save $10,000 per year?
To save $10,000 per year, you don’t need to make six figures. Spend $10,000 less than what you earn.
You need an $833.33 surplus each month if you break it down on a monthly basis. You can save $192.31 per week if you look at it from a weekly perspective.
This goal can be achieved by combining cutting costs with earning more money.
How can I save $10,000 in just 100 days?
To save $10,000 in 100 working days, you will need to save $100 per day. This is more than three times as much savings effort as saving $10,000 per year.
Although it is more difficult, it is possible to achieve this goal. You’ll need to increase your income while still maintaining a modest budget.
Robin Hartill, The Penny Hoarder’s senior author, saved $12,000 over 12 weeks to pay down debt.
How can I save $10,000 the fastest?
Combining reducing your expenses and earning more money is the fastest way to reach savings goals. If you can reduce or eliminate the largest expenses, such as moving in with family members to cut down on housing costs, you will be able to save money quickly.
As long as you don’t allow lifestyle inflation to take over, it’s possible to increase your salary significantly by starting a higher-paying job or getting a raise.
