| | |

How to Save 10k in One Year

This post may contain affiliate links

For those looking to learn how to save 10k in one year – you might think it's impossible – but by following the right strategies and methods, it can be done. (Honestly, I've said this before in nearly all these pieces, but your ability to save any substantial amount of money is by….earning enough so that your needs are covered and you can put away a good amount.)

In this guide, I'll break down exactly how to save $10,000 in one year and some tips that I've used to boost my savings. Let's get started!

 $10,000 Savings Breakdown

Before you start saving, it's important to understand exactly how much $10,000 is in terms of your savings goal. To save $10,000 in a year, you'll need to save:

  • $833.33 per month
  • 192.31 per week
  • $27.40 per day

How to save 10k in one year: my best advice 

Start a Budget

As with any savings goal, you'll first want to start by creating a budget that helps you better understand your monthly income and expenses. There are numerous types of budgets you can choose from, but ultimately, the best budget is the one you can stick with.

A popular budget among super-savers is a zero-based budget in which you balance your income and expenses each month so you have no extra money left over at the end of the month.

However, there are several other types of budgets like the 50/30/20 budget (my personal favorite) or a goals-based budget that some people prefer.

It might take a few tries to find the budgeting system that works best for your habits and lifestyle, so don't give up if it takes a few months to get on track. The key is sticking to it in the long run.

Check Your Grocery Bill

As inflation has rapidly increased, you've probably noticed your grocery bill creeping up each month. While there's nothing you can do to battle the rising costs specifically, you can still save at the grocery.

First, I recommend opting for generic alternatives instead of brand-name products. These can often be 20% or 30% less with very similar quality, making it a no-brainer in my book.

Next, if you have items that you buy often, see if you can purchase them in bulk for a discount. You can also consider weighing the costs and benefits of a wholesale membership to see if you can save money.

Finally, like your other expenses, aim to stick to your budget and don't buy things you don't need. I've found that creating a grocery list before I go can be extremely helpful and reduces the amount of things I buy. Meal planning is also a great way to cut costs when grocery shopping and avoiding waste. 

Use a High-Yield Savings Account

As you build your savings, having a savings account that pays interest each month can certainly help. But there's a big difference between a traditional savings account and a high yield savings account

Many high-yield savings accounts now pay interest rates greater than 5%! Most traditional banks might offer a measly .1% – so this free money can be a game changer for your finances, especially as you save more money.

Adjust Your Tax Withholdings

While this is not a great long-term solution to meet your savings goal, it will work. By adjusting your tax withholdings, you can increase the size of each paycheck that can be dedicated to your savings. Just remember that come tax season you may not have enough paid through your withholdings so you might owe money.

Track Your Spending

When starting your savings challenge, it can be helpful to take a look back at your finances over the past few months to better understand where you spend money each month. 

Additionally, you'll want to take note of your spending as you adjust your spending habits. 

But it doesn't end there. 

In addition to tracking your spending, it's important to take note of your finances and continue to adjust them as you go. I recommend setting aside some time each month to analyze your spending to see if there are any areas you could cut back.

Reduce Your Living Expenses

Your living expenses such as your home, car, and utilities can often be your largest monthly expenses. By adjusting these, you can save a significant amount of money to reach your goal.

Now, these changes can be quite significant – so you'll have to weigh the pros and cons before making your decision. 

For example, if you live in a home that's larger than you need, moving homes could make a large difference in your housing costs. Additionally, if you could opt for a home that doesn't have top-tier amenities this could be another significant savings each month. If you're looking for something that is going to move the needle on your ability to save, reducing your housing cost is the biggest lever you can pull.

When it comes to your vehicle, it's important to not only consider the cost of the car but also the other secondary costs such as insurance, repairs, and fuel costs. These can add up to a large amount each month which can break your budget if you're not careful.

If you have a family, if possible, see if you can opt to become a single-car household. While it may be inconvenient at times, it will make a large impact on your monthly budget.

Cut Out Unnecessary Monthly Spending

After taking a look at your budget, you'll probably notice that there are some costs that you might not need. For example, gym memberships, streaming services, or car wash subscriptions can all be culprits of expenses you don't need and can add up to $100 a month or more in savings. 

Or, perhaps you have an unhealthy shopping habit or you spend too much money eating out. You'll want to take a deep look at each of your expenses to see if they're really necessary and try to reduce the ones that aren't.

Build an Emergency Fund

Having an emergency fund is a great step that can come in handy to reach your $10,000 savings goal. Emergencies are bound to happen so having some money set aside for these times can help you to save your budget instead of breaking it.

I recommend saving at least 3 months of your normal monthly expenses for your emergency fund, but some experts recommend you save 6 months. For example, if you normally spend $3,000 per month – a great start to your emergency fund would be $9,000. This means if you lose a job, have an unexpected car repair, or hospital bill – you won't break your finances trying to navigate it.

Automate Your Finances

In a world full of technology, automating your finances is easier than ever and it can greatly help you to stick to your budget and save money

If you have trouble saving money, I recommend setting up automatic transfers from your checking account to your savings each paycheck so you don't even have to think about your money. While this might seem like a small step, it can make a big impact for some people!

Start a Side Hustle

Another great way to save $10,000 quickly is by increasing your income through side hustles and side jobs. If you want to save $10k – you can use your additional income to pad your savings each month.

There are tons of potential side hustles you can start and some of them can even be great ways to make passive income. Here are some options worth considering:

  • Deliver food with platforms like Doordash or UberEats
  • Pet sitting with platforms like Rover
  • Starting a blog, podcast, or YouTube channel

While starting a side hustle will require time, it's a great way to improve your finances and get on track with your money.

If you don't want to dedicate more time to your finances, you might consider trying to find a new job that pays more or asking for a raise. This can be a quick way to increase your income, allowing you to save more each month.

Reduce High Interest Debts

If you have high interest debts like credit card debt or an auto loan – you'll want to prioritize paying these down as quickly as possible to save you money. In many cases, the interest on these debts can cost you hundreds each month, making it very difficult to save money.

In most cases, if you have debts with an interest rate that exceeds 15%, I recommend you prioritize these, even before saving money.

One option you could consider is debt consolidation. This will bundle all of your debts together with a lower interest rate that makes it more affordable and manageable.

Have No Spend Days

Have you ever tried a no-spend day? Basically, these are days set aside each month in which you aim not to spend a single dollar. 

If you make routine trips to the gas station or have a habit of eating out – having no spend days can be a great way to break the cycle so you can save money.

I recommend trying to schedule them ahead of time so you can be aware of these days in advance which can make them much easier.

Invest for the Future

While investing isn't necessarily a way to save money, it's critical to your finances and can help you reach your long-term goals. Whenever you think of investing – you probably think of the stock market or real estate. And these are great ways to grow your money.

However, you'll also want to consider investing in yourself to grow your future income. There are tons of ways to invest in yourself like furthering your education, taking a course to learn a new skill, or just picking up a book about networking. The key is that you should use these

Open an Interest-Bearing Checking Account

Did you know some checking accounts will pay you interest each month? That's right! This is essentially free money that doesn't cost you anything. Several different banks offer interest on checking accounts and while you won't make a fortune off of this money, every dollar helps to reach your savings goal. Even better, some of them may offer a welcome bonus for new customers that can amount to a few hundred dollars in free cash.

Refinance Debts

High-interest debts can break your finances. By refinancing them, you can save money and potentially pay less in interest.

Now, it's important to consider the total cost of your financing if you do choose to refinance. In some cases, you could end up paying more in interest over the life of the loan so you have to be careful.

That said, depending on your current interest rate, you might be able to get a lower rate and save money.

By refinancing, you'll extend the duration of the loan in exchange for smaller monthly payments. This will allow you to save more money each month that you can dedicate towards your savings goal.

Final Thoughts

If you want to save $10k in one year, it's going to take a plan and hard work. You'll want to start by creating a budget and analyzing your finances so you can get a better idea of how much you can potentially save each month. From there, aim to reduce your monthly expenses and slowly build your savings every month until you reach your goal.

P.S. Whatever your savings timeline, we've got the post for it. While many of these tips are the same, they can be scaled up or down to reach your objectives.

  1. How to save $1,000 in one month
  2. How to save $2,000 in one month
  3. How to save $5000 in 3 Months
  4. How to save $20,000 in one year
  5. How to save $30,000 in one year
Want to take your money management to the next level in 2024? Learn more about The Financial Best Life Blueprint, our digital product that comes with e-books, excel spreadsheets and more to help you take control of your finances, eliminate the overwhelm that comes with managing money, and achieve your money goals faster. FBL readers can get the Blueprint for just $5, by using code BESTLIFE. Click here to explore.