Are you wondering how to save $10,000 in a year?
One of the most crucial keys to financial success is obviously saving money. Saving money is simply putting money away to be used in the future for bigger and better things.
The money you save might be used for a new vehicle, a down payment on a home, or maybe even capital to launch your very own business. No matter what your objective is, saving money demands work, commitment, and consistency.
$10,000 is a common goal that people set, but I think it is safe to say that for most people $10,000 is a decent chunk of change which is why they get discouraged or give up easily.
With a big goal like this, it is important to have a plan and take one step at a time.
Let's take a look at the $27.40 Rule and how it can help you reach your goal.
Creating a 'Why' Factor
If you want to achieve a goal or objective then it is extremely important to have a 'why' factor.
There is no motivation or significance in saving money if you don't have a 'why.'
This 'why' is essentially your reason for what you are doing and will provide you with motivation when you feel discouraged.
Examples of your "why" are the same ones mentioned earlier, such as a new vehicle, a down payment on a home, or capital to launch a business. These are all great reasons to keep you motivated to save $10,000 in a year.
The other crucial element in this situation is setting a deadline. This enables you to calculate how much you must set aside from each time you make money.
Furthermore, it allows you to remain organized and the chance to beat your own expectations by achieving this savings goal earlier.
The $27.40 Rule
A major goal's initial steps are always a little intimidating and $10,000 is a substantial sum of money.
This is why it is very important to come up with a clear plan and take things one step at a time.
Instead of staring at the enormous sum of $10,000, break it down into more manageable savings objectives.
| Time Frame | Dollar Amount |
|---|---|
| Daily | $27.40 |
| Weekly | $192.30 |
| Bi-weekly | $384.62 |
| Monthly | $833.33 |
When we take $10,000 and chop it down into smaller pieces, you see it breaks down to $27.40 per day, $192.30 per week, $384.62 Bi-weekly, or $833.33 per month.
When you break $10,000 like this it seems much more attainable. With this strategy, you won't be concentrating on the intimidating sum of $10,000 but rather on one day at a time.
Ways to Earn $27.40 a Day
Now that we have broken the math down and realize you only need to put away $27.40 a day you’ve got to figure out where you’ll get the money from. You can free up money in a number of ways in order to reach that $10,000 target.
Keep in mind that making just one change is probably not going to help you reach your goal. You are probably going to have to combine a few of these methods in order to increase your daily, weekly, or monthly savings.
Create a Budget
No matter if you are rich or poor, it is necessary to have a budget in order to have a successful financial future.
Having a budget doesn’t mean you have to live a boring lifestyle. Budgeting is simply just giving your money a plan of action that will set you up for success.
A simple financial practice for people who don’t know where to start is the 50/30/20 Rule.
The rule states to take your after-tax income and split it into three separate categories.
- 50% for Needs
- 30% for Wants
- 20% for Savings/Investments
Following this plan will help you reduce your expenses and help contribute towards that $27.40 a day.
Increase Your Income
The more money you make, the faster you can put away money to reach your ultimate goal. Money won’t solve all your problems, but it will solve your money problems.
Budgeting and keeping an eye on your spending can undoubtedly be helpful, but finding a strategy to increase your income will fundamentally improve your financial condition.
With that being said, if your 9-5 isn't paying you enough to put away extra money then you might need a side hustle.
Side Hustles are actually a lot of fun. It's much more fulfilling to have a side business because it allows you to earn money without having to answer to a typical supervisor.
I wrote an article on side hustles that will help you earn more. Check it out here
Get Started
Hitting $10,000 is very possible.
It requires effort, sacrifice, and diligence, but by taking tiny steps you can achieve this significant financial objective that can help you with your next big purchase and potentially change your life.
Follow these steps so you too can reach financial success.
