Saving $10,000 in one year may seem like a daunting challenge.
It might feel impossible to save that much money.
But imagine how beneficial it could be!
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You wouldnt have to worry about not having enough money in case of an emergency.
You could take that luxurious vacation youve been dreaming about.
With the right game plan and discipline, saving $10,000 in a year is possible.
Well walk you through how to make it happen.
If you want to save $10,000 in a year, youll need to save $833.33 each month.
Thats still a pretty big number to work with, so lets break it down even further.
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Maybe youremergency fundis low, and you want a bigger financial cushion to be able to fall back on.
Or maybe you want to use the money to pay offcredit card debtorstudent loansso you could be debt free.
This pot of savings could help you achieve financial independence.
it’s possible for you to use it to complete a big home improvement project.
If youre expanding your family, you could use that cash forbaby expenses or fertility or adoption costs.
Or if you already have kids, $10,000 could go toward theircollege fundand future financial security.
Maybe you want to add an extra $10,000 to your investment orretirement accounts.
Really, the options are endless.
Now is the perfect time tostart a budget, if you dont already have one.
After you total up your monthly income, subtract all your monthly bills and expenses.
Hopefully, youre left with a positive number and not a negative one.
That means you already have room in your monthly budget for saving money without taking any extra action.
To save $10,000, you have to prioritize it up front andpay yourself first.
Treat your savings mission like an important monthly bill you’re gonna wanna pay.
Better yet, set up an automated transfer so you dont have to even think about it.
Our tips on slashing your spending and boosting your income can help.
Some people refer to this as giving the government an interest-free loan.
Dont wait until the end of the month to look at your checking account and discover youre overspending.
Housing, transportation and food typically make up the bulk of monthly expenses for the average household.
Downsizing or moving to a cheaper place is a drastic move, but big moves produce big results.
Going from atwo-car family to a one-car familycan save you a few hundred dollars each month.
And dont forget about your car insurance.
It could save you up to $610 a year.
Yes, youve got to eat, but chances are you could adjust your spending habits around food.
If you eat out a lot, startmeal planningso you have food available when you dont feel like cooking.
Instead of going to restaurants with friends,host potlucksat your house.
Look up copycat recipes to make similar dishes to the ones from your favorite restaurants.
There are oodles of ways you cansave money on groceries.
Lower Other Recurring Bills
Reducing additional recurring bills will help you funnel money toward savings.
See this story for more tips tosave money on utilities.
No more paying over $100 for your cell phone bill.
Switch to adiscount cell phone carrier, like Tello or Mint Mobile, to save money.
Cut the cord to eliminate costly cable bills.
With certain streaming services, youdont have to miss out on live TVorNFL games.
Thesefree TV appslet you watch shows and movies at no cost.
Or visit your local library to check out DVDs of your favorite films or television series.
Check out the deals competitors are offering and consider switching to a different internet provider tolower your internet bill.
Gym memberships can get pricey especially if you find youre not going to the gym that often.
Considersetting up a workout space at homeorusing free equipment at local parksto save money.
Attend free events or festivals in your city.
Explore a part of town you dont often visit.
Host a movie marathon or karaoke night with your friends at home.
There are plenty of things you’re free to do without spending money.
Barter for Goods and Services
Rather than paying for things you want or need, considerbartering.
If you think creatively, you might be surprised at what it’s possible for you to barter.
Go beyond your immediate social circle and arrange a bartering exchange with people onNextdooror a local Facebook neighborhood group.
Everything is offered as a gift or charitable donation.
Craigslist and Nextdoor are other platforms where local people offer up free items to their neighbors.
Before buying something new, peek if you’re free to get it for free first.
Sometimes youll find items in great condition.
Celebrate Your Wins
Saving $10,000 in a year is a big goal.
You deserve to reward yourself as you make progress toward financial success.
Just confirm however you choose to celebrate doesnt derail your goal of saving money.
Having a glass of champagne or a spa day at home are nice treats that arent expensive.
Bring in Extra Income
Sometimes cutting costs isnt enough to meet a savings goal.
Making more money is another way to get you to the $10,000 mountaintop.
A combination of reducing expenses and making money will make this savings challenge much easier.
Ask co-workers to call you to pick up their shifts on days when theyre unavailable to work.
If youre a salaried employee, ask your manager about taking on more responsibilities for a pay bump.
Not sure how to start that conversation?
Read our guide onhow to ask for a raise.
Sometimes the best opportunity to boost your salary is by getting a new job.
Scan thislist of the best side gigsto find your next money-making endeavor.
you could literally earn money while youre sleeping.
It could be anything from clothing and kids toys to sports equipment and furniture.
Thesewebsites and apps are great places to sell things onlineso you dont have to organize a garage sale.
You dont have to earn six figures to be able to save $10,000 in a year.
You just need to spend $10,000 less than the income you take in.
From a weekly perspective, you oughta save $192.31 a week.
A combination of cutting expenses plus earning more money can really help you meet this savings goal.
Thats more than three times the savings effort of saving $10,000 in a year.
While its definitely more challenging, its not impossible to meet this goal.
However, youll likely need to boost your income significantly while operating on a bare bones budget.
The fastest way to reach your savings goals is to couple reducing expenses with earning more money.
Nicole Dow is a former senior writer at The Penny Hoarder.
Senior writer Rachel Christian contributed.
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