Do you know that 40 percent of Americans have less than $10,000 savings when they retire?
Your spending habits determine whether you can save $10,000 in a year or not. Saving this amount is challenging, especially if you don’t have financial discipline. But it’s not a challenging task if you stay focused towards achieving the overall goal.
Are too many expenses weighing you down? If you want to put up that family vacation at the end of the year, then you should start saving smart.
Use these five techniques and learn how to save $10,000 in a year so that you can enjoy life to the fullest.
- Clear Debts and Learn How to Save $10,000 in a Year
Debts can really weigh you down in your final saving plan. Having a poor debt repayment plan is the reason why every year ends without you saving a dime? So, how should you pay a debt and still save $10,000?
Well, saving money requires sacrifice. There are certain spending habits that you should do away with if you want to save more. Many people get into unnecessary debts throughout the year so that they can fund their lifestyle.
The basic rule for this is that don’t get into debts because of emotional attachment. For instance, there’s no need for buying extra pairs of shoes if you don’t need them. Impulsive buying is the reason why so many people are in debts that they could otherwise avoid.
So, list down your debts and schedule the payment dates. Contact a professional financial advisor to give you guidelines that you can use to live a debt-free life. Henceforth, alias with your banks to ensure that you pay debts on time.
For more insight on clearing debts, have a look at our financial blog.
- Set a Reasonable Target
Once your debts are paid, it’s now time to embark in your saving journey. Set targets that you can achieve. For instance, if you save $1000 a month, then you can hit your goal by the end of the year.
For you to save 10k in one year, you should save at least $200 in a week or $800 monthly.
It is advisable to set realistic goals that you can achieve. Have a check at your pay check to determine how much you can save without straining. You can also team up with your spouse to reach the target fast and even double it up.
Now that you have a target, you should now make a dream come true. Open a savings account to avoid any unnecessary withdrawals. Even if you surpass the target, don’t stop saving.
In fact, this should motivate you to save more. Remember that at the end of the year you’d want to have the bragging rights. The only sure way of doing this is saving consistently throughout the year.
- Look for Side Hustles
What if you can’t raise the required threshold? Well, you must look for alternative sources of income that’ll boost your saving plans.
A quick search through the internet and you’ll find a lot of jobs that you can do from home. Most of these jobs don’t need many skills. You’ll only do a few tests, and if you pass, then their dashboard will be open for work.
Most people lose hope when it comes to freelancing. The misconception is that you’ll spend much time trying to complete a simple task. However, this is not true.
With practice and patience, you’ll be a pro in your preferred field of work. Consistency is the key to success in the freelance industry. So, don’t just sit at home during your free time.
Instead, look for online freelancing jobs that you can do at your convenient time. Most of these jobs pay consistently after a week. They pay via PayPal and other online payment platforms.
- Automate Your Savings Plan
The $10,000 at the end of the year depends on your savings frequency. How often do you want to deposit money to your account? Is it monthly or weekly?
Now, this solely relies on your payment schedule. Use the rule of 10% savings for every income that you earn. Don’t use the money for anything else before you divert some to your savings bank account.
Short term saving plan is the best. Don’t wait till the money accumulates to the required amount. Instead, save in small, bits while targeting the final goal.
It helps you to avoid impulse spending that will jeopardize your savings target. Besides, it instills financial discipline that enables you to save better. In short, don’t spend money before you save a bit of it.
To avoid any overspending temptations, instruct your bank to deduct a certain amount of money weekly or monthly. This will instill financial discipline in you as you won’t have to touch the money. For more details, kindly contact your bank officials for a workable savings plan.
- Let Your Close Confidant Control Your Finances
Sometimes, it is the poor spending habits that make you overspend. However, you can avoid this by entrusting your close family members with your credit and debit cards. This will help in controlling your spending habits to manageable levels.
They’ll only pay bills that are necessary. If you’re a shopaholic, then it’s wise to have someone watch your spending habits.
Many people have wonderful testimonials of how entrusting their confidants plays a huge role in their spending sobriety. Research shows that most successful couples have the habit of watching how their partners spend.
This technique helps you to only pay for necessary bills. It also gives you peace of mind because you have someone who’ll pay the bills on your behalf. Read more about it at Dealwiki.net.
It’s Not Too Late Start Now
Saving $10,000 may seem like an uphill task. However, it is simple if you follow the techniques mentioned above. At first, you may find it difficult, but as you progress, you’ll love your savings journey.
Check out our blogs to learn more on how to save $10,000 in a year. It is a journey that’s worth taking. Apart from improving your financial status, it instills spending discipline, which is essential.