How to Save $10,000 in One Year: A Clear Guide

How to save $10,000 in one year, that was the question I had not long ago. As well as things like this played through my mind all the time…

What should I do? How do I get started? But I don’t want to work even more! Should I get another job? What should I give up in my life to save? 

Saving $10,000 in a year might seem like a difficult task, and maybe getting started was for me, but with the right strategy and a bit of discipline, it’s totally achievable. 

Whether you’re saving for an emergency fund, a big purchase, or just to improve your financial health, following a structured plan and having a money-focused mindset can help you reach your goal.

So let’s get started!

Here’s a step-by-step guide to help you save $10,000 in one year…

How to Save $10,000 in One Year: A Clear Guide

1. Set Your Clear Financial Goals

Define Your Purpose

Why do you want to save $10,000? Understanding your reasons for saving will keep you motivated. Are you planning a vacation, building an emergency fund, or investing in your future? Writing down your purpose or saving a picture of what you want to buy will help give you the drive to stick to your plan.

Break Down Your Goal

Breaking down the $10,000 goal into smaller, manageable monthly, weekly and daily targets makes it a lot less intimidating. So, this is what saving $10,000 looks like…

Per month = $833.33

Per week = $192.31

Per day = $27.40

2. Create a Budget

Track Your Spending

Start by tracking your current spending. If you don’t have a budget, I highly recommend you start. It’s a great habit to get into.

Use apps like Monefy: Money Tracker, Buddy: Budget Planner, or download my simple personal spreadsheet to see where your money is going. It helps to categorize your expenses to clearly identify areas where you can cut back. Keep a copy on Google Drive and you can update it anytime, just like having an app.

I’ve always used a simple excel spreadsheet because with a business it’s been easier to change things on a whim and scale up when needed. I also track every nitty-gritty bit of our spending, from each vehicle, and how much each one costs from payments, insurance, and maintenance. Everything is individualized from groceries to alcohol, because grocery is a need and alcohol is a want. Anyway, I could go on for hours…

Here are the two budgeting apps I recommend for simple and easy budgeting…

Prioritize Your Expenses

Separate your expenses into needs and wants. Focus on essential expenses like rent, utilities, groceries, and transportation. Look for areas where you can reduce discretionary spending, such as dining out, entertainment, and shopping. I know it’s not easy or fun but trust me, it will be worth it. 

Set a Monthly Budget

Based on your tracked expenses, create a monthly budget that aligns with your savings goal. Don’t forget to allocate a specific amount each month towards your $10,000 target.

I found this ingenious way to carry your money around for your budget without having to use the envelopes and jar method at home. Check this TikTok Video Out by Sasha | CND Girl Cash Stuffer

3. Cut Out Your Unnecessary Expenses

Reduce Your Subscription Services

Think about your subscriptions (Netflix, Spotify, gym memberships, etc.) and decide which ones you want to cancel. It might be easy if there are some that you don’t use frequently. You can also consider cheaper alternatives or free options.

Eat Out Less

I’m sorry to burst your bubble but dining out can quickly drain your budget. Try cooking at home more often, meal prepping, and bringing lunch to work. You may have to brown paper bag-it for a while. Just kidding! Check out these cute lunch bags… Large Weitars Lunch Bag, HOMESPON Lunch Bag, Weitars Lunch Bag.

This not only will save you money but can also be healthier.

Limit Your Impulse Purchases

Before making a purchase, ask yourself if it’s a need or a want. Also ask yourself, do I have something at home already that I can use to get me the same result? For example, could I make homemade bread in the oven instead of purchasing a bread maker? Or try implementing the 30-day rule: wait 30 days before buying any non-essential item. Often, the urge to buy will pass.

4. Increase Your Income

What About a Side Hustle?

It’s worth exploring side hustles if you can’t or don’t want to work more at your current job. Sometimes, side hustles offer more flexibility with your hours as well. Here are a few options off the top of my head right now…

Could you pick up some local tutoring or offer a cleaning or handyman service? Everyone loves to pay to have their windows cleaned in my small community I’ve noticed. What about child care, pet sitting or dog walking? If you live on a farm or have a significant amount of land, you could start a small garden and sell fresh produce at a local market. How about lawn care and landscaping? Or, have you thought about picking up groceries for the elderly?

There’s honestly so many options for side hustles, and even just a few hours a week can significantly boost your savings.

Sell Your Unused Items

Declutter your home and sell items you no longer need on platforms such as eBay, Craigslist, Facebook Marketplace, or by having a traditional Yard Sale! Personally, I recently opted for a yard sale to sell a ton of items, since I have noticed that people are less likely to follow through or show up when arranging individual sales online. Whatever you decide, these options not only generate a bit of extra cash but also simplify your living space.

Ask for a Raise

If you’re performing well at your job, consider asking for a raise. Prepare a list of your accomplishments and contributions to justify your request.

5. Automate Your Savings

Set Up Automatic Transfers

Set up automatic transfers from your checking account to a savings account. See your personal financial institution to talk about setting up a high-interest savings account. This way you can start making interest off the money you’re able to save. Remember to treat your savings like a non-negotiable monthly expense. 

Use Savings Apps

Try using saving apps like Checkout 51 and Receipt Hog. Checkout 51 will send you a cheque in the mail after you reach $20. Receipt Hog allows you to gain points that you can redeem on things like Amazon gift cards. Don’t forget to download the Flipp App too. I’ve been using it for years. All you have to do is enter your postal code and it will allow you to see all the flyers in your area, and all the deals for the week. This is what they look like…

Envelope Challenge

If you think you can restrain yourself from spending the money you save at home in envelopes, you should really check out this binder challenge for saving. 100 Envelope Challenge by Sasha | CDN Girl Cash Stuffer.

6. Reduce Your Debt

Pay Off Your High-Interest Debt

High-interest debt, like credit card debt, can really slow down your savings progress. Try to really focus on paying off your high-interest debt first to free up more money for saving.

Consolidate or Refinance Your Loans

If you have multiple debts, look into consolidating them or refinancing to lower your interest rates. This can lower your monthly payments and make it easier to save.

7. Monitor and Adjust Your Plan

Review Your Progress Regularly

Check your progress monthly to make sure you’re still on track. Adjust your budget and your strategies as needed to stay aligned with your savings goal.

Celebrate Your Milestones

Don’t forget to reward yourself when you hit milestones along the way. Treating yourself to small rewards can keep you motivated without throwing off your savings plan.

Saving $10,000 in one year requires commitment, discipline, and strategic planning. And I know you can do it! 

Remember, achieving financial health is a journey, not a race. And trust me, stay focused, and you’ll be surprised at what you can achieve in just one year.

Thank You Credits: Cover photo by Matthew Henry on Shopify.