10 Steps to saving $10,000 in a year! The Fastest Way

What is impossible becomes possible when you take the first step. Is it possible to save $10,000, yes! There is $10,000 out there, and it just takes will, discipline and motivation. Put all those three in a blender, and that would be the healthiest drink you can take in the morning.  I believe after reading this; you will think it’s possible too. Its important that we make our goals big enough because we are not always aware of our potential. Many people are facing trouble saving money every month just after regular expenses.

Even if you have to work at a job you hate, knowing that you are trying to save $10,000 isn’t that motivation enough.  Is struggling right now going to give you the will never to have to struggle anymore. If I just gave you $10,000 today, I’m sure that it’s needed. What can you do with $10,000 right now? Put a down payment on a property? Invest in your dream job?  Starting from today, we are planning to save $10,000 for a year. Next year you will be $10,000 richer! Are you with me? Keep reading. Let’s do this!

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1. Break Down $10,000 into Achievable Goals

Start with figuring out what $10,000 breaks down to. Thinking of saving $10,000 can sound like an immense challenge at first. When you break it down, it turns into $833.33 for each month, $384.62 every two weeks, and $193 weekly. Saving money in smaller increments makes it seem more achievable.  Now you can make a plan based on the frequency you get paid and what you have SAVED already.  Decide which amount would be more manageable for you to save before moving on to the next step. 

The Break Down 

  • $28 per day
  • $193 per week
  • $385 every two weeks
  • $834 per month

Have you ever tried Nerdwallet’s Saving goal Calculator? You can put any goal in and find out how much you need to set aside each month. If you have any other savings goal it’s a great tool to check it out. 

2. Update Your Budget

We are trying to save $10,000 for the year, so the budget needs to be revised. After you decided which breakdown payment you will save. The next step is to review your budget and plan for the year. Get really serious about budgeting, review all your bank statements, plan all your spending intentionally. If you need spending money or what I call “Fun Money,” put that in your budget.  Constantly readjust your budget for any changes. 

Try if you can to budget for the year! This could take a weekend to do, but it’s worth it if all you have to do is revisions.  If your income varies from month to month, this might be a little more difficult, but the goal stays the same. You want to save how much each month? Each week?  And $10,000 by the end of the year. Track your progress during your budget review each month. When you are budgeting for the year, always consider the holiday expenses, major purchases, or debt obligations. 

3. Save Before You Spend

I’m pretty sure you’ve heard of “Paying Yourself First.” It sounds pretty good at first, like, oh, I get to keep some of my money. Then when I realized that it was just transferring money into my saving account.  At that time, When I first started having trouble saving, I would see it sitting there, and suddenly, it will disappear at another expense. I wasn’t motivating myself or taking it seriously after some time of trying over and over again. 

I realized that by saving first, I’m putting my priorities at the front of the line. If anything, I had to mentally pretend that I have to start after what I’ve saved. I couldn’t think about what I already put aside. If you want to reach your goal, don’t count on what you will have leftover. Try to put some savings away first.  I understand saving for the $10,000 even per month is still alot. Try setting at least part of the savings goal so, at the end of the month, it’s not so much.

Are you still worried that you might spend it or not make the transfer? Here are some tips I’ve tried to put savings aside without knowing.

Make Automatic Deposits from your Checking into your Savings Account

Call your bank and ask if they have this option. Most banks, especially online banks, have a feature that will allow you to have automated deposits transferred to your banking account. One of the options can either be a round-up feature. For example, if you purchase something that’s 1.96, it’s rounded up to 2.00, and the .04 is deposited. Pretty much the difference for every transaction will be transferred to your savings. 

The online bank I use is Chime; they have made it easy to transfer funds to my savings with the round-up feature. Another transfer option Chime has the percentage transfer when I receive deposits from my paycheck.  I’ve started out transferring 10%, then slowly increased it by 5% when it’s optional.  The best part is it’s automated, and I don’t have to dwell on transferring funds. Once it’s in the account, I don’t see it, and I don’t spend it. It’s growing, growing!

You can try this percentage option with your employer. If you already have direct deposits, ask Human Resources if your paycheck can be deposited into multiple accounts. I have two bank accounts that I had split 50% between them for my payroll deposit. One account I use for my personal expenses, the second account is primarily for business expenses. The savings account has the same routing but a different account number. So now you can have automated deposits sent when you first get paid!

Try a Money Saving app.

Let the app do all the work for you! I have savings everywhere! You know the traditional savings account, and then I have specific goals that I’m saving for on the app. Currently, I’m using Digit to help me set money aside for major expenses or goals. There is alot of money-saving apps out there, but I like Digit because it saves based on your spending habits. The small amounts of savings are transferred automatically.  You can set a maximum for each goal, a balance limit to which you don’t want your account to be withdrawn. Also, you can pause savings at any time. 

4. Set Yourself No-Spend Days

Sometimes you don’t know your actual saving potential until you press pause. Preschedule out some non-spending days and prep beforehand. Just to get the experience going, try it out for one weekend—a whole two days of no spending. Weekends are when I do most of my spending because I’m at work Monday through Friday. Imagine how much you can save by not spending on the days that you would typically spend.  

You already know my days, which ones are yours? Right after you get paid? On a Monday at the start of the week, or are you a late-night online shopper. Pause it, Freeze it, figure out the days that you see the numbers mostly go up and choose those days. After you have done a few days, dare we say to try a week. $10,000 is a big challenge, and it’s time to go big or go home. Let’s dare ourselves to try it for a week. I know by picturing the $10,000 you will make it through. 

Not spending a penny is challenging, as I probably mention plenty of times. Don’t worry; I got your back. Here are some tips below to help you during a No-Spending Challenge.

  • Shop out of your kitchen, use up all the remaining groceries in your pantry.
  • Borrow a book or video from the Library. Remember libraries yes, they still exist! Lol
  • Bored? Clean and declutter your home and find things to sell!
  • Make your coffee at home. Become the inner Barista I know you can be!
  • Plan out your meals ahead of time! Use the same staples in a variety.
  • Listen to a Podcast on Spotify, and Free subscription is available
  • Learn on new hobby on Youtube university, well just Youtube
  • Journal and Plan your goals for the next five years
  • Block notifications from potential shopping for websites.
  • Don’t check your email, no just leave it till your done!
  • Exercise, mediation focus on rebuilding your health and wellness
  • A family day in the park, go outside, and enjoy your city’s public spaces.
  • Call a friend or family member you haven’t spoken to in a long time.
  • Volunteer your free time for a friend or your community

5. Lower Your Monthly Expenses

Ladies and gentlemen, we have crossed over to the dark side. Lowering expenses as much as I love the savings, boy, is it a chore! We still have to think big picture here, so we are not lowering just for this month. Try thinking of a year-long monthly expense cut-off. Go through your expenses like a fine-tooth comb. What needs to go? What potentially could be keeping me from reaching? What?! $10,000!! So yes, let’s cut some subscriptions off. Hello gym membership, we might need to watch Youtube for the year. 

Then maybe we might need to reconsider our phone plan, our cable subscription. Where can we squeeze to get some juice flowing? Where is the money going? If it’s a monthly $20 fee on a monthly program or product you hardly ever use, is a year going to make a difference? You already wasted…wait, add it up, you already know. Now let’s get back to adding more income and cut back. Luckily I tend to make this a habit to show you some ways to reduce your bills. Below are some things to look at reducing or canceling altogether

  1.   Shop and compare for new insurance: Car Insurance, Life Insurance and Health Insurance
  2.    Lower your bill or cut off Cable
  3.    Stop paying interest on your credit cards, pay it on time, and don’t use it
  4.   Negotiate your cellphone carrier or switch to a discount cell carrier
  5.  Use coupons on the regular. You gotta buy it? Look and shop for a bargain. 
  6.  Buy generic brands
  7. Pre shop online before you go in the store
  8.  Cook at home for the month
  9.  Use Trim or Truebill as an app to help you lower expenses
  10. Cut back on eating out
  11.  Reduce your entertainment costs

6. Create Ways To Earn More

We are now to our final last step, which is earning more.  All of the income you bring in now is covering your monthly expenses and other things. We need to bring that income level up so we can add more to our $10,000 goal. Think of this as the hustle period. I’m going to hustle my way up to that $10,000 because I know I can do it. I know you can do it too. At this point, this is the brainstorming session you would have during this whole process. You would have to think outside the box, and you would have to be creative. 

Sit down with a list of things, ideas, and ways to make extra income. Take math into the equation. If at this rate you can only save $300 a month, think about how you can make the extra $534 a month. It’s easy to scratch a ticket and win the extra money suddenly, but this is work!! What can you do to make extra money, even to speed the process? Can I make this much now so I can finish the goal early?  Bring yourself into that passion; I need to make this goal!  After some brainstorm, here below are some ways you can earn some extra month each month.

  1. Sell the stuff you don’t use. You might have a whole inventory of items for sale
  2. Turn your passion into a side hustle. What can you do that someone would pay for?
  3. Driving as a side income, check out Uber, Lyft, Grubhub and Amazon Flex
  4. Babysitting, pet sitting. Can you charge less to score against someone for hire, your competition?
  5. Freelancing, taking photos,graphic design, proof-reading
  6. Ask for a raise and save the increase. A closed mouth doesn’t get fed.
  7. Change jobs or negotiate a higher salary
  8. Flip used items for a profit. By used items for less and resell online
  9. House cleaning, office cleaning, laundry services
SAVE $10,000 IN A YEAR

7. Track Your Progress

A year is a long time, and it’s easy to lose track. Hey, after a month, I’m like, how much did I save and then after I would forget to check next month. When it comes to my attention, if it’s not in my face, I’ll forget about it. I need a chart, something to color in, boxes to check off, some reminders. It would be best if you track your progress. See how far off or closer you are to your goal. So how can you track your progress? You can create a chart with numerical values adding up to $10,000. Another idea is to put an update and goal reminder on your monthly budget. Set a notification on your phone $XXX amount away from $10,000. Whatever you can use every month consistently to remind you and have the ability to log your progress. 

8. Map out your Journey

Map out your journey to $10,000 for the year. When you’re driving somewhere where you have never been, you need directions. Imagine starting your navigation, and it just had the Start and then the End. You would be like, what? How am I going to get there? When you have a plan, you can put it into action—no second-guessing. You already know what you have to do. You might already have some ideas to put on your map from reading this article, but you need to put them into a plan. First, what month to what month are you saving? Is it next month? After Christmas in the new year? When is it going to start? And then when does it end? Ok, so we have the start and the end, now let’s pull all the in-between stops.

Grab a blank sheet of paper, space out even all the twelve months. Make sure there is space to make bullet points underneath each month. Starting the budgets, how much can you save with the income you have now each month. Now let’s put some no spending days down for each month, of course, there might be some birthdays and holidays. Take the irregular spending into account.

Next, after evaluating expenses, make a list of what expenses you can lower or cut. Place the amount you want to lower or expense accounts for each month. Make a plan, first-month review, and next month make some calls to negotiate or cut, next month no eating out. You got the drift. Last, let’s get some earning potential on there, plan this out. Maybe you would start by decluttering and putting sellable items aside. Next, you can take photos and make listings. Schedule out available hours for a second job. Depending on which idea you are implementing for earning more,  put them in your plan and iron it out.

9. Celebrate your Milestones

You need to celebrate! What you are doing! When your friends are making fun of you for not going out, it can be a downer. The celebration needs to be within you. It’s possible you might not have a coach, a mentor, or even a partner in this adventure. You need to be your number one fan! When you just crushed it at saving an extra 100, celebrate! If you got some items sold to make some extra cash, celebrate!

I’m not telling you to spend a ton of money, but if there is something you can do for yourself, do it! Get your nails done! Take a weekend off from work to relax! Treat yourself to a nice bottle of wine and takeout at home! Purchase a new book that will motivate you! Small purchases won’t keep you from achieving your goal; in fact, they will help you keep pushing to the end. If you are not treating yourself and not taking a break, you will want to quit. This is a happy adventure, not a punishment. The only thing I ask is to only celebrate with something worthy of the milestone you reached. Please don’t go crazy over a $20 savings; no, Hunny, we need to go up, up up! Celebrate with a big win!

10. Have an Abundance Mindset

Most articles probably would have started with this and then jumped right into a list. I’m ending this with an abundance mindset because it’s the most important step. You want to sleep with the mindset, have dreams of abundance, and wake up feeling abundant. What is going to get you into that abundance mindset? A playlist before work, songs all about making money or working hard.

Music is a great motivator for me, and sometimes it can even get me out of bed. Set your alarm with some music. I bet you will jump out of bed.  Dance out of bed whatever happens to wake you up. Is it reading a book about financial freedom? Listening to a motivating podcast. Following a mentor? A vision board of all things that feel abundant to you? Get in the abundance mindset, and it will make all of the steps easier. Pretty soon, your fast-forwarding to the finish line. Are you wondering why? You have the mindset now; it’s stuck in your mind like a routine. The vision is already here; you saved $10,000 already. It’s just waiting to be deposited in your bank account.

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