First of all, you need to know how much you earn, how much you spend, and how much you can save each month. It is even important to pay attention to what expenses can be reduced and how to start saving in order to reach your financial goal.
For any person, savings are a stable and free future. Some people save money in order to have an emergency fund in case of a difficult life situation, others want to buy a house, and some people want send their children to a good college. It doesn’t matter why you want to save money and what goals to cover – there is always one way. Saving money is about self-discipline and controlling your weaknesses. Almost everyone can save $ 10,000 in a year, but in order to do this you need to have a plan and stick to it. Properly prioritizing and budgeting are the best friends of someone who wants to save enough money to become financially stable and independent. So let’s take the first step.
How to save $ 10,000 in a year?
First of all, you must drop all your fears and doubts. As the saying goes, “if you enter a game fearing to lose, do not expect to win.” Explore helpful tips and pay attention to budget planning which will save you even more than you think.
- Set a goal for yourself.
Take this point seriously as goal setting is one of the deciding factors on the road to your savings. It is very difficult to save money when you do not understand why you are doing it – then the desire to save and work hard disappears. Perhaps you are looking to buy a new car, start a college fund, or take a trip around the world – set a goal before you act. It is also very important to understand how much money you need to cover this goal. Let’s say your goal is $ 10,000.
- Break the goal into smaller pieces.
When people see an amount as large as $ 10,000, they immediately perceive it as something elusive. That is why it is recommended to divide the goal into smaller parts to make it easier to perceive it as achievable. If your goal is $ 10,000 per year, then you should be saving about $ 833 per month. Not that much, is it?
- Make savings a priority
Many people save the part of the money that remains after all the expenses at the end of the month, but this is completely the wrong approach. In order to save a large enough amount, saving should be as high a priority as paying utility bills and buying food. If you decide to save what remains at the end of the month, then most likely you will not get anything, since money is something that is always lacking.
- Track your progress
In order to see that you are truly progressing, it is recommended that you track your progress. You can use a regular notebook or mobile app and write down your progress regularly (preferably every week). If in a month you have to save $ 833, then in a week it is about $ 208.
- Find someone with the same intentions
It is much easier to achieve something if you have someone who supports you, or even has the same goals. Perhaps your friend or family member also wants to save a certain amount for their goal – you can start doing this together, tell each other about your successes and get additional responsibility. Knowing that you can let someone down who stubbornly achieves the goal, you will also be more disciplined.
- Grow your income
This point may seem obvious, but you must learn how to multiply your income. If you find a part-time job, you can collect a lot more than you expected. There are now a huge number of online professions that are easy to master. If you spend a couple of hours a day on the weekend, then $ 833 per month will not be a problem for you.
- Arrange a sale
A good way to start raising money is to have a garage sale. You can sell anything you no longer use, from an old laptop to a lawnmower. That way, you will not only get extra money to save but also free up space in your home for something new.
- Celebrate your victories
It is very important to regularly reward yourself for progress in order to stimulate the achievement of the goal. Every time you close your monthly savings goal, find something to please yourself.
- Remember why you are doing this.
In order to achieve a goal, you need to constantly remember about it, and there are several ways to do this. For example, you can put a piggy bank with money in a prominent place. Make the goal visible and then it will be easier for you to understand that it is real.
- Don’t give up.
If in a particular month you could not save the required amount, you should not be too strict with yourself. Each of us faces difficulties that require urgent funding. Draw conclusions and keep going towards your goal despite the setbacks.
Budgeting to raise money – useful advice
Perhaps one of the most important things to look out for if you want to save $ 10,000 per year is budgeting. First of all, find out how much you earn per month. The next step is to outline the circle of expenses. First of all, include things like renting a house, utility bills, food, internet, and more. Your next spending item is the $ 833 you want to keep. The rest of the money you can spend on restaurants, clothes, and more.
Also, be sure to pay attention to the costs that you can cut. Unsubscribe from some channels, stop buying fashion magazines, deny yourself purchases if you don’t need them – this way you can save a lot more than you expected.