How do you save $10,000 in a year?
If you invest $750 a month on the stock exchange, with an annual return of 8 percent then your return on investment in 1 year would be $10,149,69. Use this compound interest calculator to see for yourself.
Now, stock market savings are more risky, but that means you can reach your goal faster. If you have a specific purpose for the money and a clear end date where you need it, a regular savings account is often preferable.
The security of knowing what you have in your account then often outweighs the potential that stock market savings can provide.
The stock market fluctuates and there is a risk that you will need the money when the stock market has fallen at the same time.
If, on the other hand, you do not have a given end date, it is wise to consider stock market savings for all or part of your savings.
Top 10 simple steps to succeed in saving $10,000 in a year
1. Make a budget
The first step to saving money is to review your finances today. What income do you have and what are your expenses?
If you have a subscription that you do not even use – cancel it. Also set up a household budget on what you can shop for in the month.
You do this to get a clear overview of what you are actually spending your money on each month. It is also easier to spend less money when you have a plan for how the money will be used.
When you’re done with your list of income and expenses, it’s time to start saving for real!
2. Make lunch boxes
We know how it is, it is so much easier and more fun to order food at home than to eat lunch boxes and leftovers.
Try to cook extra food when you make dinner and put in lunch boxes that you can easily heat up when you still work from home.
Because just by a simple change such as eating yesterday’s leftovers for lunch, you can save over $1300 in one year!
3. Skip the take-away coffee
Other easy ways to save money in everyday life are to skip the take-away coffee. Buy a thermos and take the coffee with you from home when you go out for your daily walk.
Let’s say that your coffee costs $2,5 a day, you would then save $56,25 in one year.
4. Change means of transport
Do you have the opportunity to cycle instead of driving or taking the bus? If so, do it! This way, you can save several hundred bucks a month.
If you live in the city, you would save about $558 in one year if you chose to cycle half the year instead of taking the bus.
5. Sell what you do not need
Also take a turn in the garage and storage room, where you can often find things of great value that you do not use.
Sell this and you can make a lot of money.
6. Change your shopping habits
To succeed in raising a savings capital, it is important to think through all the steps in everyday life. Avoid spontaneous shopping, ask yourself the question: “Do I really need this – or do I just want it?”
Do not buy new clothes unnecessarily – the ones you have probably work really well.
7. Review your eating habits
Have you indulged in a little more expensive eating habits? Make changes such as replacing the yogurt with porridge or the meat with vegetarian.
Skip ordering takeaway food from a restaurant and eat a good homemade dinner instead.
Start shopping according to shopping lists and plan your meals, it is both nice to always have dinner planned and you also save money by not having to shop small.
8. Review your loans and insurance policies
If you want to go all the way in to save your $10,000 in one year, I recommend that you review your loans and insurance.
Many pay more than necessary and could actually reduce the cost a lot.
9. Apps for saving
Take advantage of technology. There are lots of savings apps to help you with savings tips and to cut down on expenses every month.
10. Compete against yourself
Also try to compete against yourself. See if you can save a little more for each month and think that you save $10 extra every day for a year – then you have collected $3650 in one year.
It’s the $10 bucks you would otherwise have bought a take away coffee and a bun, or a lunch, for anyway.
How do you find the money to save?
The easiest way is probably to draw on unnecessary consumption and to save immediately when the salary comes instead of saving what is “left over”.
For most people, the reality is that there will be too many months left at the end of the salary.
Another option is to do a few dog months and save as much as you can, to then return to a normal mode but with a buffer in place that provides security.
The feeling of security that a savings capital provides is definitely worth it.
However, it is the case that we all have different conditions. If a saving of $750 means that you have to give up many things that give you joy and well-being, then maybe you can let it take a little longer.
But in the name of honesty, you can probably skip the latte in town, maybe cycle to work and let the entire salary increase or wellness allowance go to saving.
Challenge yourself and see how fast you can build a buffer of $10,000.
How do you save $10,000 in a year in a fun way then?
Gamification is an exciting trend where you simply build in various fun game elements. Most people think it’s fun to compete, not least against themselves, which often attracts the child or the winner’s skull in us.
Whether it’s in the football game, the cube game, when you play monopoly or challenge yourself at the gym.
But how can you then apply this to your savings?
If you know that you can save $100 a month but are unsure if you can save $750, we can take the help of just gamification.
Then save $100 immediately when the salary arrives and divide the remaining $650 over the remaining 29 days.
This means that you save $100 immediately and $22,5 the day after, or at least the days it is possible. This means that you will save at least $100 and at most $750.
Then it will be a small competition element that may cause you to incur unnecessary costs or perhaps look for that bike that both provides great exercise and helps you towards your goal.
One thing is for sure, you will thank yourself afterwards as a buffer means less stomach pain and worries about financial issues.
The whole purpose of a buffer and a saving is that you should get more out of life, not less.
Here’s 6 intresting ways to make some extra income
1. Join Clickbank.com
Create digital products such as e-books, instructions and share with you different kinds of tips or other digital products and sell them via Clickbank.
Once you have set up your product, it is there so that others can market your product. You will then receive a commission from the sale.
Read more at www.clickbank.com.
2. Create an app
Creating an app is easier than ever. There are lots of articles online on how to get started. Google “How to create an app”.
If you hatch a good idea and sell it to the App Store, it may in principle be enough for a few thousand people to download the app for you to be able to make a relatively good profit on it.
3. Start blogging
Many people have discovered that blogs can be a really lucrative source of income. Of course, it is not completely passive.
This is about writing and constantly catching an audience’s attention. But if you blog about things you like, it feels more like a pleasure than a job.
You make money by linking to the company whose products you are writing about, by selling advertising space or perhaps creating your own things that you can sell.
Think about what you can blog about. It’s easy to get started. All you need to do is install WordPress (WP is a blogging platform), get yourself a WordPress theme and start writing.
It is completely free to start a blog on WordPress website.
4. Become a consultant
Do you have any special skills or talents that you can share with others? You may have an education or a job that requires certain skills.
Think about whether you can help others then by offering your services as a consultant.
You can always start by getting started on a small scale on evenings and weekends.
5. Write a book
Today, you do not need a publisher to publish a book. You can just write an e-book and sell it yourself, either via a blog, Youtube or your own website.
Be drastic, dramatic and provocative when marketing it. Use different channels online. Comment and be resourceful.
Challenge and attract attention. Everything can be sold with murderous (= smart, funny and startling) advertising.
6. Play poker
It is also not a particularly passive way to make money – but fun and very profitable if you are good.
I have an acquaintance who has become furiously skilled in a fairly short time and who has pulled in a lot of money – first on online games, but now also by going to Las Vegas and playing.
But take this option with a grain of salt. Betting and poker and all those things involve great risk and 9 out of 10 times it is NOT worth it. It’s just a fun recommendation that’s all that you can do once every blue moon or so.
When I have reached my goal of $10,000 then?
In the end, you will reach your goal. What are you going to do? It’s entirely up to you, you may need the money to pay for a dream experience or to buy a home.
It’s up to you and completely different from person to person. When I myself reached a milestone in my savings, I celebrated it in different ways.
Along the way, I have developed an interest in saving and investing, and now I am constantly setting more and more ambitious goals.
For me, the journey is the goal. How it is for you, only you can answer.