To be able to save 10,000 in a year, you will need to first, and foremost, develop self-discipline and decide why you want to save. You will need to eliminate certain expenses in your day-to-day life, and then most importantly, you must create a pattern of saving; this will require you to choose an amount to be saved along with a frequency with which this amount will be saved.
Let us look at some ways that can help you to achieve your 10000 a year saving goal:
Decide on what you want to do with the saved amount. Identify and weigh your heaviest expenses. Prune your spending. Review subscriptions. Make use of automated savings applications. Save the money in a place or account that you will not touch. Find a method that works for you.
Starting a new habit takes quite some time and a lot of effort. It may be even more difficult when it comes to money matters. Every day we wake up, there is one need or another for money. Some of them are so needy that they never seem to go away, like a mortgage for instance. Research shows that over 10 million homeowners (65 years and older) are still saddled with mortgage debt. Then, besides the heavy needs for money, we have the small ones that show up, like phone services, groceries, gas, and so much more. So, it is quite apparent that without discipline, it is almost impossible to save.
Let us look at a few ways to achieve the 10,000 a year goal more closely, one after another.
Decide on what you want to do with the saved amount.
The purpose is a really good motivator. It is very easy to do something when you know exactly what the prize is going to be. In this case, I recommend choosing what you desire to use the 10,000 for at the end of the period. For instance, you could decide to use it to pay part of or all of your student loan or a mortgage. It may also be a list of things, you could decide to buy a car, invest or even start that business you have been dreaming of starting for a long while. Whatever the case may be, just be sure to put that goal in mind, this serves as a motivator for the moments when it may seem difficult to continue with your goal.
Identify and weigh your heaviest expenses.
We all have that heavy money drainer in our lives, and it varies from person to person. For some people, it could be shoes, bags, and clothes, while for others, it may be their kind of social life or gadgets. Whatever the drainer is, it affects your ability to save as you would want to. To be able to save 10000 a year, you must identify that heavy expense and weigh its importance and its effect on your savings. For example, you can weigh and decide if it is necessary to spend money on an extra pair of shoes or save that amount and in turn, increase your savings. Discipline has a very important role here too. You need to ask yourself how badly you want to save 10000 a year.
Prune your spending
Spending money is something you can hardly avoid. Every day, we find that there is always something to buy or a bill to pay. Some expenses are necessary while some are completely unnecessary. If you want to cultivate a saving habit, you need to realize that you will have to change your spending habit and pattern. You will have to learn to pick more economical options for your daily needs. If you are a coffee drinker, you can decide to buy your packaged coffee from the store and make it at home before you leave for work instead of buying a cup of coffee at the coffee shop. That is just one example out of so many. Also, making a shopping list can help you spend less at the grocery store.
Review subscriptions
Make use of automated savings applications.
With the coming of automated systems, it is definitely easy to avoid testing our discipline and just set up a system where the amount to be saved can be taken from the source automatically. For example, if you want to save daily and still achieve the 10000 a year goal, it will require that you save at least $27.40 daily. So you can set up a system where $27.40 can be deducted from your account daily. Applications such as Chime, keep the change, and Qapital offers such services.
Save the money in a place or account that you will not touch
When you save with a target and a goal, it is always better to keep these savings in a place or account where you will not go to or touch easily. You would never get your goal if you make a habit of taking out of your savings. Several banks in the United States provide Locked savings accounts.
Find a method that works for you.
To save 10000 a year, you need to put into consideration where your income comes from. If you usually get paid daily, it would be wise to save daily. If your income comes weekly then it will be wise to put away the savings weekly and so on. Take a look at the different ways to save based on income:
Daily – $27. 40Weekly – $193. 00Monthly – $834. 00Quarterly – $2,500. 00
Conclusion
The rest is up to you. When you put all the ways and methods into practice and you pick a suitable method, saving 10000 can be an easy feat. It just takes mainly self-discipline and determination. The key is to focus on the end goal and the bigger picture.
Ask yourself; is your desire to save stronger than the sacrifices you are willing to make?
How much do I need to earn to save 10000 a year?
Usually, saving happens after basic needs have been met. If you want to save daily or weekly or monthly, you will need to pick the required saving amount for that frequency and try to work your needs, bills, and expenses to exclude that amount. So basically, if you want to save 10000 a year, you have to have at least an average daily income of $200 to $250. Research shows that the highest spenders (Millenials 25-34 and Older Generation Xers 34-44) spend an average of $205.63 daily.
What happens when I forget to save for some time
You will require extra effort. It will be wise to try to catch up with the initial savings plan. You can achieve this by sourcing other means of income and making more stringent decisions.
