If you had a solid financial buffer you wouldn’t have to worry about simply staying afloat like the majority of America. Instead, you’d reap the benefits of financial stability and would be able to focus your efforts on other financial goals.
If you’re ready to make 2016 the year of improved personal finances here are some practical steps you can take to save $10,000 this year.
Break It Down Into Baby Steps
In order to save $10,000 in one year it’s helpful to know what you need to save on a monthly and even weekly basis.
To have $10,000 by the year end you’d need to save……….
- $833/month
- $192/week
At first glance those numbers can seem high. However, if you save all of the windfalls you come across you can drastically lower the amount that you need to save on a weekly or monthly basis.
Save All “Unexepcted” Lump Sums
As the year progresses how many times do you come across extra money? Just a few instances may be when you receive your tax refund, get bonuses at work, and receive an extra holiday bonus.
If you were able to contribute $3,000 from these extra sources of income it would bring the amount you need to save down to $583 per month, which is much more doable.
Pick Up a Few Extra Hours
If saving an extra $833 per month seems absolutely unreasonable what could you do to earn that amount of money?
- Working an extra 50 hours per month at $20/hour would gross you an extra $1,000
- Babysitting two kids one day per week could net you at least an extra $400 per month
- Selling one item around the house each week for $50 would earn you an extra $200
Those are just a few ideas. There are SO many ways to earn extra money and there’s certainly some sort of option for every person.
Make Your Savings Goal Stick
In order to meet your $10,000 savings goal you have to keep your motivation up. Here are a few things to do:
Automate Your Savings
Once you figure out where your savings are going to come from you need to automate the rest. Open an online savings account and have money automatically taken from your checking and put into your savings account.
Don’t leave your savings to chance. Make your plan automatic. (Like, now!)
Review Your Goal Often
Post your goal in places you’ll see on a daily basis. Just the practice of writing out your goal can increase your chances of success. Being able to view your goal every day will increase those chances even more.
Know Your “Why”
Nobody saves money just for the sake of saving money. There has to be a strong reason behind your goal. When times get tough remind yourself of why you’re working so hard to improve your financial situation.