Inflation has inevitably made it near impossible to save thousands of dollars in this economy. Too much is being spent on monthly bills, credit card debts, grocery trips, and bare necessities for livelihood.
Though very challenging, banking money can still be made possible. You just have to adopt a strict budget, adhere to it, and stop purchasing unnecessary items.
In this blog article, we’re going to present you with some pretty great savings tips. By the end, you’ll know how to save up to $10,000 in one year. If that doesn’t seem doable, just tweak the plan provided to reach a more attainable goal.
Don’t Overwhelm Yourself; Break Down Your Goal
Smaller milestones make the process much less frightening, so don’t think large in the beginning.
Sit down and write out a per month, per week, or per day guideline. $833 per month and $192 per week would be the focus numbers.
Pro tip: If it’s too tough at first, you can rework numbers so that you’re saving more later in the year. If it’s too tough at certain points in the year, you can save more one month and less the next. It’s all about your personal needs.
Pay Yourself First
This tip may sound contradictory, but it’s important.
Too often, people who are trying to put aside money only allocate the leftover funds to savings accounts. That means that the paycheck comes in, the bills get paid, the fun is had, and the spare change that’s left over is finally reserved towards that $10k goal.
But what if we told you that the right way to successfully achieve looks like this: Pay yourself first. As early in the month as you can, transfer funds to the savings until you reach that $833 goal. Don’t go broke; just make sure you’re setting priorities, before you accidentally spend the money on something you don’t need.
If you need to, set up an automatic withdrawal/deposit from checking to savings. Eventually, you won’t even notice the money is elsewhere, because you’ll be so used to your newly budgeted income.
Cut Unnecessary Expenses
The first step in mapping out a savings plan is to establish strict spending guidelines.
Begin by writing out every deduction from your checking account you see in a month. This can include but is not limited to mortgage, car, insurance, phone, heat, electric, water, sewer, cable, subscriptions, estimated groceries, etc. While you’re jotting expenses down, be sure to include “fun stuff” like dining out, entertainment, clothing, hair, nails, makeup, etc.
Then, ask some of the following questions:
- Can you cut dining out costs and prepare similar meals at home?
- Are there subscriptions you pay for that you don’t often utilize or need?
- Are there bills you’re currently paying that could be made lower? E.g credit card APR’s
- Can you start purchasing “on sale” items to cut costs?
Anywhere you can save a buck will be beneficial; remember, a dollar here and a dollar there can add up quickly.
Find Ways to Boost Your Income
If there’s a will, there’s a way.
Sometimes, cutting expenses can only go so far. What’s the next best move? Seriously sitting down and thinking about the answer to this question: How can you increase your income?
Various ways. Work a few hours of overtime. Pick up a part-time job. Try freelancing. Sign up for a gig. Start a side hustle.
What are some easy examples? Dog walking, tutoring, virtual assisting, etc. Do some web searching and see what works best for your routine and lifestyle.
Consider a High-Yield Savings Account
Where you put your money has a big impact on your success rate. Depositing cash or automatically transferring money from your weekly paycheck into a savings account is good. But if it just sits there with no opportunity to grow, you’re jipping yourself some super awesome benefits.
That’s where a high-yield savings account comes in. These types of accounts yield higher interest rates than traditional savings accounts, allowing you to increase your money gains with zero effort on your part.
Most averages grant a 5% APY to current balances. It may not produce much in the beginning, but as those thousands of dollars accumulate, you’ll see some extraordinary results.