If you’re looking to save a significant chunk of change in a relatively short period of time, look no further. This guide will show you how to save 10000 in a year. Saving extra money is not as hard as it might seem – with a bit of discipline and some simple money-saving tips, you can easily achieve your goal.
So, how do you save $10000 in a year? Here are ten easy tips to get you started.
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Why Save $10K?
There are a few reasons to save $10k to boost your savings account. For one, it’s a nice, round number. After all, who doesn’t like to keep things even? But more importantly, $10,000 in your bank account is enough to cover many important expenses. It could pay for a year’s worth of rent or mortgage payments, for example, or cover the cost of a significant home repair.
It could also be used to fund a nice vacation. The possibilities are endless.
But no matter what you plan to do with your $10,000, the important thing is that you have a goal and are working towards it. And with this guide, saving $10000 in a year is well within reach.
How to Save 10000 in a Year
Do you want to know how to save 10k in a year? It’s not as hard as it might seem. With a bit of discipline and some simple money-saving tips, you can easily achieve your goal.
This section will outline nine easy tips to help you save 10000 in a year. So, without further ado, let’s get started.
1. Track Your Spending
One of the best ways to start saving money is to track your spending. When you know where your money is going, you can start making changes and cutting back on unnecessary expenses.
There are a few different ways to track your spending. You can use a budgeting app or spreadsheet, for example, or simply keep a journal of your spending.
Whatever method you choose, make sure to track all of your expenses, including small ones like coffee and lunch out. It’s easier to cut back when you know how much you’re spending on unnecessary items.
Check out our favorite apps to help you track your finances!
2. Set a Budget
Once you’ve tracked your spending, it’s time to set a budget. One of the best ways to start saving money is to set a budget. When you know how much money you have to work with, it’s easier to make informed decisions about how to spend it.
There are a few different ways to set a budget. You can use a budgeting app or spreadsheet, for example, or simply keep track of your spending in a journal.
No matter how you do it, make sure to include all of your expenses, including small ones like coffee and lunch out. Knowing how much you’re spending each month makes it easier to make changes.
3. Reduce Your Biggest/Fixed Expenses
Another great way to save money is to reduce your biggest and fixed expenses. This might include things like rent or mortgage payments, car payments, or cable bills.
If you’re able to reduce your biggest expenses, you’ll be able to free up more money to save each month. So, take a look at your budget and see where you might be able to cut back.
For example, if you’re currently renting, consider downsizing to a smaller apartment or house. Or, if you have a car payment, see if you can trade your current vehicle in and get a cheaper model.
There are many ways to reduce your bigger expenses, so take some time to brainstorm and see what might work best for you.
4. Put All Your Change Into Savings
One of the easiest ways to save money is to put all of your change into savings. When you get home from the store, put your spare change in a jar or piggy bank and watch it add up over time. People are way less likely to pull small changes out of savings than they would bills and paper currency.
This is a great way to save money without making any major changes to your budget. And, who knows, you might even be surprised how much money you can save this way.
5. Pay Yourself First
One of the best ways to save money is to pay yourself first. When you pay yourself first, you automatically set aside money for savings. This can be done in a few different ways. You can have your employer direct deposit a portion of your paycheck into your savings account, for example, or you can set up a regular transfer from your checking account to your savings account.
When you pay yourself first, you’re making it a priority to save money. This is a great way to make sure you have money saved for emergencies or unexpected expenses.
Here’s some money saving charts to help you!
6. Reduce Recurrent Expenditures
Reducing expenditures can help you save money by eliminating or lowering costly choices. Some examples include:
- When you cook at home, you can save a lot of money on food costs. Not only that, but you’ll also be able to eat healthier meals.
- Another great way to reduce expenses and save money is to cut back on cable. Cable bills can be pretty expensive and include hundreds of channels you never watch. So consider canceling your subscription and using services like Netflix or Hulu instead.
- Another way to save money is to look for cheaper insurance policies. There are a lot of different insurance companies out there, so take the time to compare rates and find the best deal.
- Many people don’t realize how much they can save by reducing their cell phone bills. Often, people find themselves overpaying for a plan and features that they won’t use. If you only use your cell phone for calls and texting but your plan comes with unlimited data, reducing your plan can save you big time. If you can go in on a plan with friends or family, you might also benefit from a family plan’s savings.
- You can also save money by reducing your credit card debt and expenses. For example, you might want to cancel any cards with an annual fee. And, be sure to take advantage of credit card bonuses and rewards programs.
- Finally, you can save money by switching to a cheaper cell phone carrier. There are a lot of different cell phone providers out there, so do your research and find the one that offers the best deal for you.
7. Get a Side Hustle or Pick up Extra Shifts
Working a side hustle is a great way to make extra cash and save money simultaneously. When you have an additional income stream, you’re less likely to rely on your regular job for all of your financial needs.
If you’re currently working a side hustle or have the option to work overtime at your day job, you might want to consider increasing your hours. This can help you save an additional $10,000 in a year.
When you have a little bit of extra income coming in, you’re less likely to rely on credit cards or loans to cover your expenses and can start putting more money back into savings each month.
8. Set up Passive Income Streams
One of the best ways to save money is to set up passive income streams. Passive income is income that you receive without doing any extra work. This can help you reduce your overall expenses and save money on a monthly basis.
There are a number of different ways to set up passive income streams. Some examples include:
Investing in stocks can be a great way to create passive income. When you invest in stocks, you’re buying shares of a company. When the company does well, your shares will likely increase in value.
Real estate can also be a great way to create passive income. For example, when you own rental property, you’ll receive rent payments each month from your tenants. While you may lose money on your initial down payment in the short term, your investment can help you cover your mortgage payments and other associated costs long term.
Another way to create passive income is to start a blog or website. You can sell advertising space or place affiliate links on your page when you have a website. Then, when someone clicks on one of your affiliate links and makes a purchase, you’ll earn a commission.
Finally, you can create passive income by renting out space in your home or garage. If you have an extra room or area that’s not being used, you can rent it out to someone who needs it. This can help you cover your mortgage payments and lower other living expenses.
9. Invest and Earn Compound Interest
When you invest your money, you’re not just hoping for a good return on your investment. You’re also hoping for compound interest. Compound interest is when you earn interest on your original investment and the interest you’ve already earned.
This can be a great way to earn extra money and save money on a monthly basis. When you invest your money and earn compound interest, you’re essentially making money in your bank account work for you.
There are several different ways to invest your money and earn compound interest. Some examples include:
401(k) plans are a great way to save for retirement and earn compound interest. When you contribute to a 401(k) plan, your money is invested in stocks, bonds, and other types of investments.
Another way to invest and earn compound interest is to open a high yield savings account. When you open a high yield savings account, your money is invested in short-term certificates of deposit (CDs).
If you’re looking for a longer-term investment, you might consider investing in a mutual fund. When you invest in a mutual fund, your money is invested in various stocks and bonds.
No matter how you choose to invest your money, make sure that you’re doing so intending to earn compound interest.
Considerations for How to Save 10000 in a Year
When it comes to saving money, having the right mindset is key. If you’re not willing to make a few sacrifices for your new monthly budget and eliminate wasteful spending, it’ll be tough to save $10,000 in a year. But if you’re willing to make a few changes in your spending habits, you can definitely achieve this goal. Here are a few things to keep in mind:
Saving has more to do with financial habits. Focus your mindset on thinking positively and visualize yourself achieving this goal. You have to believe in yourself and celebrate your successes.
Find a Buddy
Trying to tackle any major task or goal on your own can feel overwhelming. However, having someone to embark on your savings journey provides you with a support system to keep you on track and accountable. In addition, having a buddy supports you as you work on eliminating monthly expenses and decreasing monthly bills as you build your 10k rainy day fund.
Track Your Progress Every Two Weeks
It’s important to track your progress every two weeks when saving for a goal like this. This will help you stay on track and make any changes to your weekly savings goal as needed. It will also help keep you motivated as you see how much closer you are to reaching your goal.
Did you choose to start a side hustle or work more hours? Maybe you set up a passive income stream. What did your savings look like over the last two weeks? Calculate your earnings and evaluate whether you will reach your $10,000 savings goal by the end of the year if you maintain your current momentum. If you find that you are falling short, increase your efforts. On the other hand, if it looks like you are way ahead on your savings goals, you can reward yourself with a break or by treating yourself with a reward for all your hard work.
Set and Celebrate Small Milestones
Saving such a large amount of money can be tough and monotonous, especially if it is your first time doing it. However, small wins and celebrations can help to keep you on track and motivated.
Breaking up your larger goal into smaller goals is a great way to keep yourself from getting burnt out as you work towards financial freedom. While achieving the $10,000 in savings is the ultimate goal, there’s no reason not to celebrate your smaller wins along the way.
How to Save 10000 in a Year FAQ
How Much Do I Need to Save a Month to Get $10000 in a Year?
You would need to save around $833 per month to achieve a goal of saving $10,000 in a year. This is just an estimate, and your monthly savings may vary depending on how much you currently spend and how aggressively you save.
Is Saving 1000 a Month Good?
There is no right or wrong answer when it comes to saving money. Some people may find saving $1,000 per month easier, while others may find it more difficult. The important thing is that you are making a conscious effort to save money each month and reach your goal of $10,000 in a year.
If you consistently save $1,000 per month, you will exceed your savings goal by $2,000 by the end of the year.
What Is the Fastest Way to Save $10,000?
There is no one-size-fits-all answer to this question, as the fastest way to save $10,000 will vary from person to person. However, picking up a side-hustle and eliminating or reducing expenses is a great place to start.
The Bottom Line
Reaching a financial goal of saving $10,000 in a year, while potentially challenging, is doable if you have the right mindset and are willing to make a few changes in your spending habits. As you learn how to save 10000 in a year, consider enlisting the help of a friend and tracking your progress regularly to help you stay the course. Finally, celebrate your small wins and be patient as you work towards your larger goal. Good luck!
Samantha Hawrylack is a personal finance expert and full-time entrepreneur with a passion for writing and SEO. She holds a Bachelor’s in Finance and Master’s in Business Administration and previously worked for Vanguard, where she held Series 7 and 63 licenses. Her work has been featured in publications like Grow, MSN, CNBC, Ladders, Rocket Mortgage, Quicken Loans, Clever Girl Finance, Credit Donkey, Crediful, Investing Answers, Well Kept Wallet, AllCards, Mama and Money, and Concreit, among others. She writes in personal finance, real estate, credit, entrepreneurship, credit card, student loan, mortgage, personal loan, insurance, debt management, business, productivity, and career niches.