Tips for Saving $5,000 in One Year

Tips for Saving $5,000 in One Year

When you think about trying to save $5,000 in one year, it gets overwhelming. I like to break my goals down so they’re much easier to achieve. This year, I have a goal of saving $5,000 in one year. Sounds like a lot, but I am up for the challenge. I wanted to share some of my tips for making this goal a reality.

Set it in stone

The one thing you should realize about saving $5,000 is that it needs to be set in stone. This is no easy task, so you really have to be up for it! You have to make it a priority to want to save this much money in one year. Are you up for the challenge? If so, keep reading!

Set up a separate account

When you have decided that saving $5,000 in one year is something you want to do, you now need to set up a separate banking account. Most of the time, you can set up this account within your existing bank without an issue. I believe this is a step in making saving that $5,000 a reality. It really helps when you can separate the funds and not be able to see them in your regular account.

Make a list of what to cut back on

Obviously, in order to save $5,000—you are going to have to cut back somewhere. Whether that is cutting back on eating out or snipping the cable ties, something has to be done! In order to save $5,000 by the end of this year, you will need to save a minimum of $416 each month. It may sound like a lot, but you can do it. The first major step is cutting back on things you do not need.

Up your income

For some of you, in order to save that $5,000, you are going to need to up your income. This may mean babysitting on the side or even cleaning some houses. You can take all of that money and apply it to savings. Make a monetary goal that you want to achieve and go for it. Maybe you’d like to make an extra $200 a month from this “extra income.” If it helps, I always tell myself this is only temporary and this makes the extra effort totally worth it.

Here are some other ways you can reach your goal of saving $5,000 this year.

  • Cut back on health insurance or check around for cheaper auto insurance. This isn’t possible for everyone, but some people do have the luxury of a choice.
  • Go without the extras. Makeup, extra trips, unnecessary purchases will all hinder your ability to save $5,000 this year. Going without the extras is hard, but worth it.
  • Probably one of the best ways to keep on top of your saving goal is to do things yourself. Do your own hair, nails, your own makeup, clean your own house, fix things up in your house yourself.

What tips do you have for saving $5,000 in one year? I would love to hear what has helped you. Who else will be doing this challenge?

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