More than 69% of American adults have less than $1000 in their savings accounts. So how do you go from having nothing to saving at least $10 000 within the shortest possible time? This post will teach you how to save $10K fast in just 7 simple steps.
First and foremost, why even bother to save money?
There are plenty of reasons someone could want to save money; I’m not sure what yours are, but at the moment I’d like to save money to get a powerful laptop that will allow me to edit YouTube videos more easily and quickly. So, should people just save money when they want to buy something? Certainly not; there are various reasons to save money. In general, people save money for one of the following reasons:
- Archive financial independent
- Have a good life
- Get out of debt
- Buy assets; car, house, land, etc.
- Build wealth
These are some of the reasons why you might wish to save money. Even if you believe you have no reason to save money, I still urge that you begin saving; moreover, it never hurts to have some extra cash in the bank. The moment you have some money saved, the next smart thing to do is to start investing your money. You can start investing with as little as $1000, here is an article to help you learn how to invest 1000 dollars.
How to save $10K fast
Let’s be honest: saving money isn’t always fun, it’s difficult to save money regularly over a long period of time. To consistently save money, we must learn how to make saving enjoyable. You will find saving easier and more fun if you take the following steps:
1. Set goals and write them down
Setting goals and writing them down is the first step in building the habit of saving money. Decide how much you want to save and find a clear motive for wanting to save. Break down the amount into smaller amounts and determine how much you need to save daily, weekly, or monthly to reach your goal. You must also decide on a day and time to save.
You must write down your goals; writing goals down increases your chances of success. Writing down your goals can help you stay accountable to yourself and remind you of why you’re saving and why it’s so important to you.
Let’s say you want to save $10,000 per year. That’s fantastic; you’ve just determined the target amount. The next question is, “How can I save $10,000 per year?” It can be difficult to think of ways to save this much money. However, dividing $10,000 into $833.33 monthly, $192.31 weekly, or $27.40 daily amounts makes it far easier to find ways to save. So if you plan of saving daily, you need to find ways of getting $27.40 per day. This could mean working one or two more extra hours, starting a side hustle, skipping coffee, or avoiding eating out.
2. Start now
You’ve set clear saving goals and written them down.
What next, you might be wondering?
The next step is to get started. You can devise the perfect strategy for doing anything, but if you don’t start, it will always remain a plan. Consider each day you wait as a step backward to reaching your goals.
The major reason most people fail to save money is simply a failure to begin. To start saving, you must first eliminate all the friction associated with saving. To make it easier for you to start saving, you should:
- Start small
- Remind yourself why you have to save
- Imagine how much you would have in a year
- Just start
- Associate saving with your favorite activity; for example, if you enjoy playing tennis, you can save $10 right after you finish playing.
3. Automate savings
Have you ever tried saving money and just to find yourself where you started a month later? We are human, we forget things, and occasionally our financial circumstances prevent us from saving.
So, how can one save consistently to reach $1k, $10k, or $100k?
The only way you can save consistently and attain your goals is by automating savings. You can accomplish this by opening a savings account that automatically deducts a set amount from your bank account on a regular basis. Alternatively, you can request your employer to deposit a portion of your salary into your savings account.
Automating your savings will allow you to save consistently and help you attain your goals easily. For more information on how to automate savings, check out this Forbes article.
4. Pay off all debts
Paying off your debts is another excellent step you could take if you want to save money quickly. This will enable you to channel all the extra money into savings and thus reach your target more quickly. So, if you have debts that are absorbing so much of your income that you have nothing left to save or invest, consider paying them off first. Here is a guide on how to get out of debt.
5. Increase your income
Increasing your monthly income is perhaps the smartest thing to do to save money more quickly. Assume you earn $3000 per month, and can save $833.33 every month, which is equal to $10k per year. Simply increasing your income to $5000 while maintaining your standard of living allows you to easily double or triple your monthly savings. And you can save $10,000 in six or four months rather than a year.
Increasing your income boosts your saving capacity and shortens the time it takes to reach your goals. This is simply because you have more money to save and invest. Here are a few things you can do to increase your income:
- Start a side hustle
- Ask for a raise
- Switch to a higher-paying job
- Learn new skills
The more your income increases, the faster you will be able to save, and the quicker you will achieve your goals. Check out this article: proven ways to make money online for beginners.
6. Cut unnecessary expenses
Do you have monthly subscriptions that you no longer use or other unnecessary expenses? It’s past time you cut such costs. You must analyze your budget to determine which expenses are unnecessary and eliminate them. This can include unused gym memberships, Netflix subscriptions, or TV subscriptions. This could also imply cutting back on dining out and eating more home-cooked meals. What about the $5 you spend at Starbucks every morning? Can you cut that as well?
It all comes down to determining where you are wasting money and then attempting to cut or eliminate such expenditures. Cutting out unnecessary expenses will allow you to save more money and, as a result, you will attain your goals much faster.
7. Track your progress
How can you keep the motivation and commitment to save consistently over a long period of time? It is simply by tracking your progress and rewarding yourself every step of the way. By looking at how far you have come and how much you have been able to save, you will have the zeal to continue saving. And celebrate every small achievement you attain on your way to reaching your ultimate goal. This way, you will always be excited to reach your next target. For instance, if you intend to save $10k, you can celebrate every time you add $1k to your saving portfolio.
Another way to track your progress and keep the motivation is to have a calendar on which you cross an X every time you deposit money into your savings account. If you plan to save $192.31 per week on Fridays, you must cross an X on your calendar every Friday. This way, every time you glance at your calendar, you’ll be able to see how you’re doing. Once this becomes a habit, you will despise failing to cross an X on your calendar and thus be able to save consistently.
How to save 10k in a year
Is it possible to save $10,000 in one year? It is extremely possible to save $10,000 or more per year if you take the right steps. You will be able to save $10,000 or more if you implement the strategies outlined above.
To save $10,000 each year, break down the $10,000 to $833.33 monthly, $192.31 weekly, or $27.40 daily. Then devise a plan that you can stick to; do you want to be saving daily, weekly, or monthly? Once you’ve determined how frequently and how much you need to save to reach $10,000 in a year, you must figure out how to get the funds and begin saving. If you want to save $192.31 every week, you must find out how to get $192.31 per week. Then open a savings bank account and set up an automatic weekly deposit of $192.31 to this account. You will be able to save $10,000 in a year.
How would you feel if you had $10,000 in your bank account? Isn’t it amazing? However, here’s the catch: it’s not simple to save this much money, at least most people think that way.
Anyone can save $10k or more by simply being committed and consistent. The steps discussed in this article will make saving a lot easier and fun. In my opinion, The fifth step, in my opinion, is the most crucial, which is why I published an article about it, which you can read here. However, if you want to save money fast, make sure to implement most of these strategies.