How to save $10,000 a year – 6 simple steps
Sometimes we need more quantity than usual to give us some options that we want. I’m talking about a five figure amount. Is paying a deposit for a house or an epic trip something you’ve wanted for a long time? Or do you want to get rid of student debt permanently?
Or maybe you want to inflate your investment accounts? Well, saving an extra $10,000 this year can definitely help. If you have struggled to save in the past or you have been earning low incomeThis may sound like a fanciful idea. But don’t rule that out.
What if I told you that with a little bit of work and some financial flexibility, you could save $10,000 a year? Here is a plan to help you do just that.
When it comes to how to save $10,000 a year, you need to know what it is and what it looks like. Hard numbers inspire you to save More than just a fancy whiteboard statement. When you look at a number, you either memorize it or you don’t.
Saving money is like losing weight. The number will not lie to you. Every month for 12 months, saving $10,000 in one year is $833.33. This number may seem insurmountable to many people, myself included, so let’s boil it down to something less than paying rent.
Finding money to save in small increments may seem more achievable than trying to find close to $1,000 a month. If you get paid every two weeks, saving $10,000 is equivalent to putting aside $384.62 per paycheck. If you’re trying to work out your weekly paycheck, that’s $190.30 to put aside.
Whichever number you prefer is up to you, but the truth is that it is what you need to reach your goal.
Now that you know the ins and outs of saving $10,000 a year, let’s see how you can start saving!
1. Save on bills
The easiest way to find $833 to save per month is to sit down and comb through your expenses. Some people may not have a huge amount to cut, but twice as many people have expenses that can be easily reduced.
This is the time to contact your suppliers and see what you can negotiate. Is there a service on your cell phone bill that you’re not using? for you insurance cover Is it too high for a vehicle to be considered a wreck? Find out what can be discounted and pay only what you need.
The biggest expense in a person’s budget is usually rent, but see if you can find a roommate or if you’d be better off finding a new place to rent.
2. Eat out less
Just eating more meals at home can quickly save $10,000 a year. Europeans love to eat out, and the classic family spends thousands of dollars a year on it. Even if you don’t eat out at a fancy restaurant every week, coffee and drive-in lunches are adding up.
If the financial factor isn’t enough to convince you to bring your own lunch more often, think about the calories you’ll save from reaching your waistline if you stop eating out. Start packing salads and learn how to make delicious meals at home more often.
3. Reduce your entertainment costs
If you’re a true adventurer, you might be spending a few hundred dollars a month on outings with friends without even realizing it. Breakfasts, lunches, happy hours, appetizers, and Lyfts can easily set you back $300 a month. I give myself 50 euros a week and am amazed because sometimes I feel I can barely cover one activity a week.
But I’ve found that doing things at home with friends, like group lunches or game nights, is more relaxing and saves money. It’s easiest to save $10,000 a year by finding activities that stay within budget.
4. Looking for ways to earn more is a way to save $10,000 a year faster.
Many people do not have 833 euros per month to deduct from their expenses. This is work. While I always advocate trying to find funds to trim your budget to avoid unnecessary spending (more money in the bank means more money to travel!), I’m also a huge proponent of the idea of earning more.
Ask for a raise
Earn more money by asking for a raise, this is how you can save 10,000€ in one year!
Make a list of all your accomplishments from the past year and ask your boss for a raise. If a raise is not an option, ask how it might be. You may need additional training or skills, so ask for a performance plan to get what you need to take your career to the next level.
Sometimes a raise isn’t realistic for your business or employer, in which case you (and your career) would be better off looking for another job elsewhere.
Start a side project
If a new job or a salary increase is not an option, you can always make more money by joining complementary activity ! In fact, the average supplement activity can bring in between €200 and €1,100 per month! We live in the gig economy with many jobs that can be done from home, online or both!
Uber is a quick way to make money while driving if you love being around people and discovering your city. If people aren’t your cup of tea, consider signing up for pet-sitting or dog-walking. You can also make money by reselling items in Leboncoin on eBay, by writing as a freelancer or by being a virtual assistant.
Many of the side activities require different skills, so there is bound to be something for you. Working from home quickly saves €10,000 in one year!
Learn a new skill
One way to earn more so you can save $10,000 a year is to learn new money skills! I was able to increase income by approximately 65% as a nonprofit professional by going back to school to learn new skills and negotiate my salary. I have also developed a thriving independent business that is looking to support other small business owners.
I am a person, so when others win, I win. My skills allow me to thrive in the above two positions. Once you discover your skills and acquire new ones, your possibilities to earn more will be limitless!
5. Find easy ways to automate your savings
One way I’ve been able to reach my savings goal, like studying abroad or funding an emergency vet bill, is by automating my savings. For example, my bank allows me to transfer 1 euro into my savings account every time I swipe my debit card.
Not realizing that small sums are being transferred here and there, I am happy to see a few hundred Euros in my savings account at the end of the year without thinking about it.
You can automate a transfer like this or even a small amount per paycheck and then gradually increase it over time. Automating your savings is the way to save €10,000 in one year with very little effort!
6. Try to spend quickly
One way to save $10,000 a year and jumpstart your savings to help you reach your goal faster is to try spending fast for a month. Quick spending is when you give up shopping or spending in certain categories to reduce your cash flow. By planning ahead, you’ll be able to separate your needs from your wants to help you spend less and save more.
Many people limit their spending to necessities like food to make at home and gasoline, while others allow themselves a meal or a pass to see a new movie they have. They want to watch it. It’s up to you if you want to spend more and what you do with it. By limiting your spending to needs, not wants, you can realistically see how much you need.
You can also see what you are wasting and what expenses you can still cut back on. Another benefit of spending fast is that you find ways to simplify your life, which translates to less stress and less money spent. All of this means more money in the bank.
Remember why you want to save $10,000 a year.
In the end, personal finance is very much a matter of emotions. Our minds have different money habits that we may try to get rid of after holding wrong beliefs for years. It’s not your fault, and now that you’re better informed, you can do better.
Remember why you set yourself the bold goal of saving $10,000 a year. Was it to travel? Maximizing your retirement to help you achieve financial independence faster? Education fund for your children? Or maybe it’s the down payment for the little home nearby that still makes your heart sing.
Whatever the reason, remember that you deserve it. It’s okay to put your needs and wants first. This does not mean that you are selfish or greedy. Putting yourself first allows you to give your best and, in turn, give more to others.
Only when you have a solid foundation can you provide real service. Not everyone is in the same boat, but you know deep in your heart what that’s like for you.
Achieve your goal and save 10,000 euros in one year!
Now you know exactly how to save 10,000 euros in one year! A lot can change in a year. Saving €10,000 in one year is not necessarily unrealistic. You can achieve this by reducing your expenses, earning more, and convincing yourself that you can do it.