12 Simple Steps to Save $10,000 in a Year

Saving $10,000 in a year might seem like a big goal, but it’s definitely doable with the right plan. Whether you’re looking to build an emergency fund, save for a big purchase, or just get your finances in better shape, you can reach this target faster than you think.

But where do you even start – and how do you make sure you stay on track?

Let’s break down the best strategies to help you save $10,000 in a year and make your financial goals a reality.

How to save $10,000 in a year

If you are looking for ways to save $10,000 in a year, there are plenty of options available. A few of the best ways for you to save $10,000 in a year include:

1. Pay yourself first

The idea behind paying yourself first is simple – prioritize your savings before anything else.

When you get paid, set aside a portion of that money for your savings before paying bills or spending on other things. This approach helps ensure that you’re consistently saving rather than waiting to see what’s left at the end of the month.

By doing this, you’re making saving a habit. It doesn’t have to be a huge amount. Even a small percentage of your income, saved consistently, can add up over time.

The key is to treat it like a non-negotiable expense, similar to rent or utilities. This way, you’re not tempted to skip saving when something unexpected comes up.

The best place to put this money is separate from your daily checking account. For me, I like to keep my savings in a high interest savings account, just to be sure that my money is working as hard for me as possible.

2. Use an app to save money on everyday expenses

Given that food is one of the top three expenses for most households, you might want to consider ways that you can save money at the grocery store.

After all, cutting back on your expenses can free up more money to put into savings, and using coupons is a great way to do that. You don’t have to spend hours with scissors, though – there are plenty of apps that can help you save on everyday purchases.

My personal favorite for that is definitely Swagbucks. It gives cash back at thousands of in-store and online retailers, including most major ones you probably already shop at. Plus you’ll get a free $10 sign up bonus just for downloading the app!

Other ways to save money on food include that you should try to buy items in bulk when you go to the grocery store as part of your goal to focus on cooking frugal meals. If the items aren’t going to expire, you can save a significant amount of money if you are willing to buy them all at the same time.

This can go a long way towards reducing your overall grocery expenses, making it easier for you to meet your goal of saving $10,000 a year.

3. Decide on your saving schedule

A clear saving schedule is critical for helping you to stay on track with your goal.

Start by figuring out how much you want to save each month or week to reach $10,000 by the end of the year. For example, if you want to save monthly, that’s about $834 each month.

Alternatively, if you break it down by weeks, you’re looking at around $193 per week.

From there, choose a schedule that aligns with how you earn or receive money. If you’re paid bi-weekly, consider saving a set amount every payday.

This approach can make the process feel more manageable and help you avoid falling behind. That said, make sure your schedule is realistic for your budget – it’s better to start small and increase your savings later if you can.

A lot of people like contributing to the account monthly because they can spread the money out over time.

For example, housing is the biggest payment for most people every month. Your rent or your mortgage payment might come out on the 1st of the month, so you can then ensure that the savings contribution is scheduled for, say, the 15th.

4. Set yourself up for success

One of my favorite books for helping people to make changes in their lives is called Atomic Habits. It sets out some truly great strategies for helping you to change things in your life in a way that means you’ll actually stick with them.

And one of these strategies involves removing anything that makes it harder for you to achieve whichever change you’re striving for.

In the case of exercising, this could be setting out your workout clothes the night before so everything is ready for you when you wake up. And when it comes to saving $10,000 in a year, the same argument applies.

For example, one of the first things you may want to do is remove any applications from your phone that seem to somehow eat up a lot of your money.

Do you have an app that keeps leading to impulse buying on your phone, like an online shopping app? If yes, it’s time to delete it. 

Or do you find that you’re prone to using your computer to spend money you should not be spending? If so, you may even want to put a filter on your computer that will stop you from visiting those websites or remove your credit card information from your browser.

You may also be interested in: 13 Proven Tips to Save $1,000 a Month

5. Create a new budget

If you’re aiming to save $10,000 in a year, a budget can help you map out how to get there.

Start by listing all your income sources and then all your expenses. This gives you a clear picture of where your money is going and where you can make adjustments.

Look for categories where you might be overspending, like dining out or entertainment, and see if you can trim them down.

One great approach is to try using a budgeting method like the 50/30/20 rule – where 50% of your income goes to needs, 30% to wants, and 20% to savings. But if you want to reach your goal faster, you might adjust those numbers to put more toward savings.

Remember that the goal is to create a budget that you can stick with, not one that feels impossible. It’s okay to leave a little room for fun, especially as that will likely help you to live on your budget, as long as you’re still on track with your savings.

6. Track your progress

Tracking your progress can keep you motivated and help you see how far you’ve come.

To do this, set up a simple spreadsheet or use an app to keep track of your savings each week or month. This way, you’ll know right away if you’re falling behind or if you’re ahead of schedule.

Seeing those numbers grow can be a big boost, especially when you hit milestones like saving your first $1,000 or making it halfway to your goal. It also makes it easier to adjust your plan if needed.

If you find you’re struggling to keep up with your savings schedule, you can always revisit your budget and make small changes to get back on track.

7. Cut the fat out of your spending

Finding extra cash to save often means cutting out unnecessary spending. Take a close look at where your money is going each month, and identify expenses that aren’t truly needed.

It could be things like eating out often, buying coffee daily, or paying for convenience items. These small purchases can add up quickly, and cutting back on them can make a big difference in your savings.

You don’t have to cut out everything you enjoy, but focus on reducing the costs of things that don’t add much value. For example, try meal-prepping instead of ordering takeout, or make coffee at home instead of stopping by the café.

By trimming down these expenses and looking for the cheapest ways to live, you can redirect that money straight into your savings.

8. Look at your subscriptions

Subscriptions are easy to forget about since they often come out of your account automatically. But those small charges each month can really add up over a year.

Go through your bank statements and make a list of every subscription service you’re paying for, from streaming platforms to magazine subscriptions.

Ask yourself if you really use each one. If you have a subscription that you don’t use often, consider canceling it. Even temporarily pausing services can help you save a bit more each month.

And if there are ones you want to keep, like a gym membership, see if there’s a way to get a lower rate. It’s surprising how much you can save just by cleaning up your subscriptions.

9. Consider getting a side hustle

If you’re serious about saving $10,000 in a year, a side hustle can give you the extra boost you need. It doesn’t have to be a big commitment – even a few hours a week can add up over time.

Think about your skills and interests to find something that fits into your schedule. Freelance work, online tutoring, or even selling things you no longer use can bring in some extra cash.

Side hustles can also be a great way to try something new without giving up your regular job. Just make sure that whatever you earn goes directly into your savings.

It’s easy to be tempted to spend extra income, but if you treat it as part of your savings plan, it can make a big difference in reaching your goal.

10. Save more money when you can

Not every month looks the same when it comes to spending, so it helps to take advantage of times when you naturally spend less.

For example, if you know you spend less money during the winter because you’re not going out as much, try putting more money into your savings during those months. That way, you’re building a cushion when it’s easier, which can help you stay on track during busier times.

This can also apply to bonuses or tax refunds – instead of spending the entire amount, consider putting a chunk into your savings. By saving more when you have extra, you’ll feel less pressure when your budget gets tighter.

It can also give you more freedom to enjoy things like vacations without worrying about falling behind on your savings goal.

11. Consider consulting a professional

If saving $10,000 in a year feels overwhelming, it might be worth consulting with an accountant or financial planner. They can help you see your financial situation from a new perspective, spot areas where you could save more, and create a tailored plan for reaching your goal.

While it may seem like an added expense, the insights they provide could be worth much more in the long run.

Financial experts can also help you make the most of tax benefits and savings strategies that you might not be aware of. Even just a one-time consultation can set you on the right path.

And if you’re managing other financial goals at the same time, like paying off debt or saving for a big purchase, they can help you balance those priorities without feeling stretched too thin.

12. Take a look at items you can sell

One of the quickest ways to boost your savings is by selling items you no longer need or use. Take a look around your home for things like electronics, furniture, or clothing that are just taking up space.

Online marketplaces make it easy to reach potential buyers, and you might be surprised by how much you can earn by clearing out a few items.

This can also be a good chance to downsize and simplify your living space. Plus, it’s an immediate way to add to your savings without needing to make any drastic changes to your spending habits.

Just make sure to transfer any earnings directly into your savings account, so you don’t end up using that money elsewhere.

How much do I need to save for having $10,000 a year?

If you plan on saving money every month, then you need to save $10,000 divided by 12 months. This equals approximately $835 every month. If you can save this much money every month, then you will end up with $10,000 by the end of the year.

Of course, if you want to reach this milestone, the answer to how much you need to save each interval will depend on how frequently you plan on saving. It just takes some simple math, which can be particularly helpful to do if you plan on doing this as some sort of 10k savings challenge.

If you are wondering how much you need to set aside to save $10,000 in a year, you might be taking the 10k savings challenge. If you want to reach this milestone, the answer is that it depends on how frequently you plan on saving. It just takes some simple math.

For example, a lot of people are paid every two weeks. Therefore, you may plan on saving money every two weeks toward this goal. If that is the case, then you need to divide $10,000 by 26 paychecks, which equals about $385 every paycheck. If you can set this money aside every paycheck, you should end up with $10,000 in savings by the end of the year.

If you would like to save money every week to reach the goal of $10,000, then you need to divide this number by 52 weeks. This equals about $190 to $195 dollars every week. If you can save this much money every week, you will have $10,000 in savings by the end of the year.

Is $10,000 in savings good?

For a lot of people, $10,000 in savings is great. If you have $10,000 in savings, you should be able to cover some emergency expenses, put some money toward a new car when you need one, and you might even be able to take this money and put it towards a house.

That said, the answer on whether $10,000 in savings is good will largely depend on how much money you need to save, and what your spending habits look like. 

For example, if you have major debt to pay off, this might not be enough. You may have an expensive mortgage payment and costly medical bills, not to mention supporting your household. In those cases, if you have a lot of expenses every month, then you may need to save up more money to create an adequate liquidity fund.

Overall, then, the answer is that $10,000 in savings can be good depending on your average monthly expenses and your overall financial goals. You need to take a look at your current income, assess your expenses carefully, and figure out what your long-term financial goals are.