Maybe you are saving for a down-payment on a house, you have a kid headed off to college, or you are facing any number of other expensive (and exciting!) life events — whatever the case may be, you need to save a bunch of money. In this post, I will how you how to save $10,000 in a year with 8 simple steps!
How to Save $10,000 in a Year
Want to know how to save $10,000 in a year? You make a plan and stick to it!
Unfortunately, it’s not always so easy:
I remember when my husband and I were saving for the down-payment on our current house. We had a created a plan that included living on a pretty tight budget for about a year.
In the beginning, it was easy enough to stick to the plan. As time went on, however, it became harder and harder to stay with our new frugal lifestyle. Sometimes, we messed up and overspent our budget. And that was okay, because we didn’t give up when we messed up. My husband and I had a goal to buy a house for our family and we were going to make that happen.
You CAN be successful:
We saved the money we needed, and you can too! Whatever your goal is, commit to making it happen. Work through these 8 steps, be persistent, and you will be successful!
Start With a Budget
Having a budget simply means having a plan for your money. It’s always important to have a budget, but when you have a big goal like saving $10,000 in one year, a budget is absolutely vital.
Creating a budget doesn’t have to be this big, difficult thing either. It’s actually pretty straight forward. Check out this step-by-step guide to walk you through the process — there’s even a free budget printable!
Action Step: Read The Easiest Way to Create a Simple Budget and then create a budget for yourself.
Define Your Goal and Keep it in Mind
You have a goal to save $10,000 in one year. You clearly know what your goal is, but how are you going to get there? What are the steps for success?
A study was recently done by Dr. Gail Matthews, a psychology professor at the Dominican University in California. She found that people who wrote their goals down regularly were 42% more likely to achieve them. Wow!
Writing down your goal and then coming up with an actionable plan to achieve that goal is one of the most important keys to success.
Action Step: Print out this free, goal-setting workbook. Work through it to create a plan to achieve your goal of saving $10,00 in a year.
Have a Separate Savings Account
This step is easy. Set up a separate savings account for your $10,000 goal. Once the money goes into this account, don’t touch it. This makes it a lot less tempting to spend the money you have worked so hard to save.
Action Step: Set up a Savings Account for your $10,000 goal.
Set an Amount to Save Each Week
The easiest way to save $10,000 in a year is to calculate how much you need to save every week. If you divide $10,000 by 52, you get $192.31. So every week, you need to save $192.31 in order to have $10,000 after a year.
If that isn’t possible right now, check your budget and see if there are areas that you can reduce spending. You could also lengthen your timeline – instead of one year, maybe make it 1.5 or 2 years.
Do what you need to do, but don’t give up. Make saving work for you!
Action Step: Figure out how much you can save each week toward your goal. If you need to reduce expenses, try the ideas in this post: 40+ Frugal Living Ideas to Help You Save Money
Track Your Expenses
To meet a big goal like saving $10,000 in a year, you are going to have to be very intentional with how you spend your money. Most of us use a card for the majority of our purchases, which makes it hard to keep track of all those little expenses.
Action Step: Keep a log (either in a notebook or on your phone) of every purchase you make for at least a few weeks. Not only will this show you where you can cut spending, it also keeps you accountable for all those seemingly insignificant purchases.
Save Money on Food
After rent/mortgage, food generally makes up the next biggest chunk of the budget. It’s the perfect place to look for opportunities to save money. The top ways to lower your food bill are:
- Limit eating out at restaurants and getting take-out
- Meal plan
- Use digital coupons
- Stock up on sale foods
- Only shop for groceries once per week
Action Step: Read this great post: 9 Brilliant Ideas to Save Money on Groceries and make a list of ways you can save money on your food bill.
Try a Money Saving Challenge
A money challenge is a great way to jump-start your savings. There are lots of different types of money savings challenges – two of my favorite challenges are the Weekly Spending Freeze and The 30 Day Spending Challenge. Check them both out and see which one works best for your family.
Action Step: Try a money saving challenge to save $10,000 even faster.
Earn Extra Money
$10,000 is a BIG savings goal, and it’s very possible you might need to earn a little extra money to save that much in a year.
There are many different ways you can extra money fast, from cash-back apps like Ibotta to an actual side-hustle. Finding a way to earn some extra cash can help you reach your goal.
Action Step: Check out these posts for ideas to make money quickly and see how you can earn some extra cash: 14 Easy Side Jobs Anyone Can Do, 9 Real Ways to Make Extra Money Online, and How to Earn Cash With Ibotta.
How to save $10,000 in a year? It seems like a tough question, but the answer is actually pretty simple.
You achieve this big goal by breaking it down into small, actionable steps. These 8 simple ideas to save $10,000 in a year will help you create those small steps for yourself.
Make a plan, stick to it, and you will be successful!