Saving $10,000 in a year can be an excellent financial goal to add to your list this year.

However, saving that amount of money may seem a bit overwhelming. Besides, you may have those “self-limiting beliefs” already popping up your mind like, “I'm not even close to saving $1,000!”

So, is saving $10,000 within a year actually possible? Or is it just another pipe dream?

Whether you are living paycheck to paycheck and are looking for more ways to save money or wanting to level up your savings game, this post will share with you the most practical guide to saving your first $10,000.

It may sound easier said than done, but here at TheFinanceBoost, we make sure to share realistic saving hacks to help you get one step closer to your goals and live at peace with your money.

Saving $10,000 in one year is not all about taking the fun out of your paycheck. Of course, there will be sacrifices and priorities to get straight, but that doesn't mean that you'll be miserable while taking steps to achieve it.

The key is in two things: Shuffling between your expenses and income. Essentially, one or both of these will need to be adjusted to meet the target.

Let's go further into each one.

Break it down into smaller measurable goals.

First of all, since $10000 may be a vast amount for you and you're feeling in doubt about your ability to come up with this amount in your bank account, let's take action to grind it into bite-sized, digestible amounts.

Try to see it in this light. To save $10,000, you have to save $2500 per quarter. That also means $833 per month. Moreover, if you further break it down, it will be $193 per week or, about $28 per day (that’s twice the average meal cost of eating out!)

So, tell me what could go wrong with saving at least $28 daily. Now that you've chunk it down into smaller, measurable, and more attainable amounts, reaching the goal will be much easier.

Personally, approaching goals like this works for me. It's essential to see the big picture, but it also makes sense to consider the smaller parts that make the whole.

Having said that, you can choose how to start saving that $10000. It's either you will save $193 weekly or more manageable, saving $28 every day. So let's find the money!

Further reading: Questions About Saving Money? Here are all the Answers You Need

Do a Financial Checkup and Evaluate Your Expenses.

This is where budgeting comes into play; having a reasonable budget can tell you where every dollar goes. Otherwise, you will be left wondering where it all vanishes to. Being clueless about your finances is the worst!

Therefore, keep track of all your money coming in and going out. Once you have a system that works for you, separate your necessary expenses from the expenses you can do without.

For instance, on your budget worksheet, pile #1 should all be about your Basic Expenses. These are all expenses that you absolutely cannot live or do without. I like to call these my “non-negotiables.” Examples of non-negotiable costs are:

On the other hand, the second pile should contain your Other Expenses. In other words, these are costs that even if the earth stops spinning, you can still breathe fine and continue to live. For example:

From there, check to see what you can cut off from pile# 2 that can save you an extra $28 per day. Even so, any amount you can shave off from here is a good starting point. For instance, how about those weekly eating out with your workmates and friends?

Why not bring your own meal to work? Pinterest has a lot of healthy and affordable meal plans that you can try and cook at home. That being said, you can be wealthier and healthier too!

Suffering from FOMO of Fear of Missing Out? Learn how to say NO. Speak up. There's nothing wrong with letting other people know that you are trying to live on a budget and you have an exciting goal that you desire.

Another way you can save some dollars is to embrace the new era of DIY or Do-It-Yourself stuff. Yes, it's nice to spend your hard-earned money for services you deserve, but if you can learn how to do it yourself, you're giving your wallet a breather.

Not only do you learn a valuable skill, but you also save money! But, make sure that you are confident with doing this stuff yourself.

With many resources readily available on the internet, you can practically teach yourself a thing or two. But, if it requires an expert's touch, maybe you can allocate a reasonable budget for that. We don't want to suffer in quality nor our health, do we?

Related reads:

• How to Save Money Every Month – 9 Simple Steps to Start Saving
• 15 Super Awesome Frugal Money-Saving Ideas to Use Today

Actively Seek to Increase Your Earning Ability.

Here's another practical step to take. Saving $10000 will be a lot easier if there’s more money coming in to make room in your budget. Now that you adjust your expenses, it's time to learn how to make more money.

Look to earn more money for this purpose. Keep in mind that it doesn’t have to be something complicated. Plus, you don't necessarily have to leave your current job and look for a greener pasture (although it might work too.)

Remember, you want to find ways to get at least spare $28 per day, and you can achieve that with gig economy jobs like Food delivery (Ubereats, Grubhub, Doordash, Postmates)

There's also a part-time job that you can do if you want to maximize your car; ridesharing through Uber and Lyft is one way.

Besides that, you can also do small tasks on TaskRabbit and turn your free time into pennies. Another way to fast-track your savings to $10000 is to sell unused items you own through Decluttr and save money from the sale.

Nevertheless, the best way to increase your earning ability is by learning how to monetize your passion or hobbies. Think of something you know you're good at doing and find prospects willing to pay for the services you can offer.

How to Earn additional $28 per day ($10,000 in a year)

Aside from the easy tasks mentioned above, you can also earn that additional $28 through these:

There are many ways to increase your earning ability aside from taking on various part-time or side-hustle jobs. For instance, you can learn how to invest. In doing so, you are making your money work for you, thus multiplying your money into hundreds or thousand folds.

This is what you call generating a passive income to boost your cashflow. In other words, it also means making money while you sleep. Maybe you can tap into a new business venture or invest in your skills. Acquire properties and rent them out on Airbnb.

If you know how to make money, the question of how to save $10000 in a year will now have a crystal clear answer for you.

Related reads:

• 36 Best Ideas to Earn Extra Money in 2021 and the Future
• 18 Unique Ways To Create Passive Income and Boost your Cash Flow
• Easy Freelance Jobs Online for Beginners to Get Started With Right Away

Want to save $10000 in a year? If you're not quite ready yet to leave your full-time day job, ask for a promotion, maybe. Do better at your job, and if it's still barely meeting your goals, then you can explore the world of freelance and side-hustle gigs.

Put those savings in a high-yield savings account.

You may ask, how do I save $10000 in a year if I get into trouble when saving money? Well, the key is to treat your savings as an expense. What I mean by this is to learn how to save first before you keep what's left. Usually, people just hold whatever is left on their take-home pay.

However, it shouldn't be. Pay yourself first. Make saving money a second nature to you.

More importantly, separate your savings account from your regular account. Don't forget to put your savings into a high-yield savings account too. The interest might not seem like much but it's better than zero growth on your money

You also want to save hassle-free. So, make it automatic with an app or coordinate with your employer to have it deducted from every paycheck (in the case of your 401(k)). Or, put up a reminder somewhere to always remember to save first before anything else!

Another practical tip on how to save $10000 in a year is to make your savings account less accessible, after all, out of sight, out of mind! It also makes sense to use cash instead and leave your cards behind when going out. Resist the urge to spend and try to engage yourself in various easy money-saving challenges.

Pay Yourself First and Automate the Process.

Elaborating on the above point, you don’t need to be actively involved in remembering to put aside your savings or manually transferring money from one account to the other.

You can set up an automatic recurring transfer to your savings account. As soon as your paycheck comes in, use an automatic feature to deduct your weekly or bi-weekly savings amount.

See, saving shouldn't leave you feeling deprived or miserable. Make use of what's left.

On the other hand, if you can save even the money you intend to use for purchases, well, even better! It's like a snowball. You can start small, with $28 daily, and watch how it accumulates into $10000 in a year.

Windfalls can go towards saving $10k in a year.

Yes! Windfalls such as tax refunds, gifts, etc., can also be used to fund your savings of $10000 in a year. It may not be that much, but at least you have seed money to get started with.

Windfalls are unexpected, so you may find yourself splurging it on unnecessary expenses, which is what we're trying to avoid here. The lesson is to be intentional and conscious of every choice we want to spend our money on.

An Accountability Partner Can Keep You On Track.

Lastly, and this is my favorite part! Telling someone about your goals or doing a goal together with a friend can help motivate and keep you in check when times are hard. We understand that it's challenging to be consistent all the time, and those days when you're feeling off are all normal. No judgments here, my friend!

Have someone hold you accountable to help you reach your goal.

For instance, you can ask to team up with your closest friend or workmates. Both of you don't have to have the same purpose or intentions. We're all social beings and have different goals in life. Just knowing that someone is helping or supporting you toward your goals can be an extreme mood booster.

However, be sure to be responsible with each other and build trust. Join a local group near your area for like-minded individuals or search on Facebook for helpful resource groups.

Further reading: 32 Realistic Ways to Save Money Very Easily Without Giving up Too Much

What to do with your $10,000

Most of the time, people hate the nosy ones, especially when it involves their personal life, including finances. So, I can’t tell you how to spend your money, but here are great ways to use $10000 to improve your financial life:

• Add to an Emergency Fund- An Emergency Fund is money you set aside for unexpected expenses or circumstances. It's like paying insurance, but all the money stays with you. It helps you break the paycheck-to-paycheck cycle and gives you room to focus on funding your future financial goals.
• Add to Your Retirement Savings– If you want to retire early and be financially independent, saving your first $10000 is one crucial step.
• Pay Down Debt– To be truly financially free, crushing that dangerous debt is the key. But, if you don't have any credit card debt, try to keep it that way.
• Invest in the financial markets for the long term
• Invest in yourself and your skills
• Start a Business
• Add to a 529 College Savings Account for your kids.

These are a few of what your $10000 can directly go into. Depending on where you are right now in your life, make sure you paint a clear vision of why and where you intend to use your $10000 savings.

There are a lot more ways where to spend it. Take, for example, using it as a down payment for your dream house. You can also use the money for specific purchases you plan for the future or use it to prepare for your travel goals. So many things you can do and buy using that money!

It's all up to you where and how you want to spend it. But remember to take control of your future today. Nobody will do it for you.

Wrapping Up

We are only passing through the first quarter of 2021. Indeed, there's a lot that can happen within a year. Therefore, the question on how to save $10000 in a year, hopefully, now has a definite answer.

Of course, you can do it! It's doable, especially if you follow all the advice above.

It may look like a lofty goal, but it's easier than you think.

Once you achieve this goal, aiming for more or exceeding this amount will become more achievable and exciting. If others can do it, why can't you?

If you still feel meh on how to save $10000 in a year, why not try to save your first $1000 instead?

Overall, keep in mind that whatever goal you commit to, believe in your ability to achieve it. No matter how hard or how bad it gets, you are going to make it!

We believe in you! Now go ahead and do the hard work!

What are your thoughts on how to save $10000 in a year? Have you done this before? If so, tell us about your journey to financial independence and freedom.

However, if you're interested in making your first $10000, share with us below other practical tips that might help. It's time we talk about money!