You are probably wondering if you read the title right. Or if it is even possible to learn how to save 10k in a year.
Yes, you read it right. You can save 10k in a year by following these 10 easy steps. These ten steps will assist you in reaching your financial goals.
Saving 10k is an achievable goal that will require commitment from you. Saving 5 figures in 12 months is no child’s play. However, a solid plan can take you there.
How Much To Save Per Month To Reach 10k In A Year
Whether you are saving for a car, a down payment on a house, a luxurious purchase, or an emergency fund, 10k will come in handy.
However, it is a bit intimidating to think of the whole amount. It is better to break down the amount into smaller doable chunks.
To save 10k in a year, you need to save at least $833.34 per month. You can even break it down further to $384.62 bi-weekly or $192.31 per week.
It takes only $27.40 per day to save 10k in a year.
10 Easy Steps To Save 10k In A Year
1. Decrease your bills
The fundamental part of saving money is to spend less money. Bills make up a big chunk of our expenditure. And that is normal. But to save money, you have to decrease your bills.
When you spend less, you can invest more. You cannot attain the goal of saving 10k in a year if your expenses remain the same.
You can decrease your bills by reducing your monthly subscriptions. You can cut down on groceries and phone bills.
Grow your own produce and spend less on food. You can also refinance your student loans, mortgage, or car.
Make use of coupons and rewards. You can also have your groceries delivered to avoid impulse spending or splurging on “on-sale” items.
Financial Tip: On-sale is not on sale if you don't need it.
You can read 20 money-saving tips to assist and give you inspiration.
2. Create additional streams of income with a side hustle
Side hustles are a great way to increase your income. Getting a side hustle will get you closer to that financial goal. To save 10k in a year, you need to save $833.33 per month.
If you earn at least half that amount from your side hustle, you will achieve that goal quicker. A side hustle will elevate some pressure off your main income.
There is a variety of work from home jobs you can choose from. You can be an online English teacher if you have a bachelor’s degree, you can start selling digital items, be a social media manager, a web designer, start a YouTube channel, become a freelancer, and many other things.
You need to find the one that works for you and stick to it.
It would be even better if you can find a hustle that can earn you passive income. Passive income is the money you earn while sleeping, in simplest terms.
An online blogging business is a great way to create passive income. We started our online blog with only $20 and it generates income for us each month. Check out our free course on how to start your blogging business in less than 20 minutes.
Being able to earn money while you sleep will give you time to rest and enjoy life while you are still making money.
You can also invest the money you earn from side hustle to grow your savings. Investing is another way of earning passive income. If you are new to investing, here is a guide on how to start investing.
There are ways to automate your investing by using Acorns. You can simply sign up and the app will automatically invest your spare change by rounding up your purchases to the nearest dollar.
3. Automate your savings
While the traditional way to save is to take money out of your checking account and deposit it to the savings account, that can be very discouraging.
Seeing that money and deciding to save it when there are other things that need to be done can be challenging.
Automated savings take away that stress. The savings are taken directly from your salary, therefore you will always have the money you committed to savings.
A great place to put your savings is a high-yield savings account. We recommend CIT Bank. They are an online-only bank and offer competitive interest rates. They save money by not having a physical building to fund and that allows them to provide great offers to their customers.
4. Learn a new skill that can earn you money
Gaining a new skill is not only beneficial for your finances, but it is also great for emotional and mental health. Remember the last time you learned something new and how accomplished you felt?
That’s a feeling you will get after learning a new skill.
However, the aim is to have more money to invest towards achieving the 10k in a year goal. Your new skill should be one that you can monetize.
You should learn a skill that interests you and has market demand so you can make progress on how to save 10k in a year.
Do not spend hours learning a skill that will not be monetizable. You should also try to sign up for free courses. There are a lot of online coaches that offer free classes. You should search for them.
You can also check out LinkedIn Learning that offers a lot of great resources to help you learn new skills so you can increase your income. This is how to save 10k in a year by utilizing new resources.
Remember, the aim is to make money and not to spend more. Therefore, try to minimize costs at all times.
5. Set a goal and go for it
Setting financial goals and saving money go hand-in-hand. You cannot save money without setting realistic financial goals.
Your goals should be specific to you. You cannot adopt someone else’s goals and hope they will work for you too. You will need to fully commit to your goals and accept that there will be bumps in the road.
Break down your goals into small achievable chunks. Instead of aiming for 10k a year, try to make monthly goals.
To save 10k in a year you must save $833.33 a month. You can break it down further to $192.31 per week. Seems achievable, right?
The overall amount can be intimidating and impossible until you break it down and realize it is within your reach. Do not give up when the going gets hard. That’s part of the process. Set visual reminders all around you to keep you motivated.
Share your goals with your support system so that they become part of the process. When your support system is on board with you, they will motivate you and keep you in line.
Align yourself with like-minded people. Join Facebook groups for people who want to learn how to save 10k a year.
Check out our Facebook group The Secret Insider's Community to connect and learn about money management.
6. Ask for a raise at your job
You should never be afraid to ask for what you deserve. Here are some tips on how you approach this conversation:
One of the most awkward but necessary conversations you will ever have is asking for a raise. This topic is treated by many as a taboo. However, asking for a salary increase is a normal part of any job. The market is constantly changing and the inflation rate is continuously increasing, your salary should follow suit.
- Before you set up the meeting with the relevant parties, do your research. Know the company’s salary structure and where your current role fits in. Decide on the amount you are asking for and be realistic. Know the market rate and compare it with your company’s rates.
- During the meeting, be firm in your request but also polite. Do not be hasty and entitled. Be prepared to get a ‘no’ or ‘maybe’ answer. Remember that it is a negotiation and not a demand.
Remember there is nothing wrong with asking for a raise. To learn more on this subject, read The Cut’s How to ask for a raise.
7. Get on a detailed budget
Imagine a neurosurgeon walking into the operation room without any idea or plan of what they will be operating on or not even knowing a diagnosis.
That’s exactly what trying to save money without a budget is. How can you save 10k without a plan? You will, without a doubt, fail.
Getting on a detailed budget can be as simple as writing down your expenses, income, and savings. Plan out how you will distribute that income to cover both the expenses and savings.
There are also budgeting systems and tools that may help you such as the EveryDollar budgeting app.
Budgeting is personal and should always be designed to cater to your needs.
8. Decrease unnecessary expenses
There is nothing that can derail your finances like “ant” expenses. Those insignificant expenses that you don’t pay attention to.
That cup of Starbucks coffee every morning. Individually these expenses are insignificant but cumulatively they are exactly what is keeping you from achieving your goals.
Remember you need to save $27.40 per day to save 10k in a year. Unnecessary expenses that could be avoided are sometimes three times that amount.
Do not spend money on things you do not need. To avoid unnecessary spending, you should only go to the supermarket when you need something. Create a list of items you need before you go to a store and stick to that list.
Avoid places that offer things or items you cannot resist. For example, If you like to read then going to a bookstore is not a good idea.
Do not pay for something that you can get for free or cheaper elsewhere without compromising quality. Do you want to learn a new skill?
Try free courses on Udemy.com and YouTube before you pay for them. Visit your thrift shops before any other store if you need something.
9. Don’t overwork yourself
It is easy to get lost in the idea of saving money and reaching financial goals. The journey can be very addictive.
Especially when you start to see the results. Do not get so lost in the idea of saving money and making more money that you forget to take care of yourself.
Self-care is a form of love. It is no use to save 10k and not enjoy life. Even worse is saving such a huge amount only to spend it on medical care because you forgot to take care of yourself.
You can avoid overworking yourself by setting up a flexible schedule. Allow yourself a “me time”.
Set small achievable tasks that will take you a step closer to the goal. You also need to budget for fun. Put a small portion of your money aside as fun money.
10. Celebrate reaching a milestone
Do not forget who the champion of this journey is. Celebrate every milestone. Appreciate and grow with the process. Blow your own horn. No matter how small you believe the milestone is, do not forget it is still progress and should be celebrated.
Celebrating gives you a moment to reflect and see how far you have come. It will keep you motivated and inspired. Saving 10k in a year might be a bit difficult at times therefore celebrate when needed.
Do not downplay your own achievements.
Final Words - How To Save 10k In A Year
Saving money is hard and uncomfortable but being broke is harder. You need to choose a little bit of discomfort now for the greater good.
It is possible to save 10k in a year. Dedication and self-motivation will get you there.
Do you now feel you know how to save 10k in a year? Why or why not?