How To Save $10,000 FAST (Money Saving Tips)

Let’s talk about how you can save $10,000 easily.

I have six simple strategies that anyone can use to make this goal achievable.

Many people struggle with money, and it’s not just you.

A survey by Payroll.org shows that 78% of Americans live paycheck to paycheck.

For those under 35, the average savings is only $5,400, and over one-third of Americans have more credit card debt than savings for emergencies.

But we can change that.

Today, I'll show you six super easy ways to save $10,000 fast, and the best part?

They won’t cost you anything.

Now before we start, this is Ivan here from the Vanilla Investor, a former investment analyst and with over $100k invested in the markets.

My goal is to bring you simple finance at your fingertips.

So, this is what we will be covering today.

The first thing to do would be defining your savings goal, followed by: how to actually get started and not get sidetracked.

Next, we move on to tracking your money, minimizing your spending, and paying yourself first.

As for more practical ways on how to save that $10k fast, we will look at 6 areas, which is:

housing
transportation
taxes
meals
debt
and clothing

Lastly, we will offer an alternative if you are not the type to pinch money, so without further ado, let’s dive in.

Break down your Goals into Bite-Size Tasks

To hit any money goal, it helps to know exactly how much you need to save and by when.

Here’s the thing: if you just say, "I want to save $10,000 as fast as I can," it might be hard because you don’t have a clear goal or time limit.

It’s important to choose a realistic time to reach your goal.

For example, if you want to save $10,000 in a year, you can break it down like this:

$833 each month,
$27.40 every day,
or about $1.40 every hour.

You don’t need to be as exact as counting pennies every minute, but you get the idea.

When you break your goal into smaller parts, it’s easier to do.

Saving $10,000 might seem tough, but when you think about saving just $27.40 each day, it seems more possible.

Once you have this clear plan, you can move on to the next step.

Half of the work is done when you Start

Start now.

It sounds easy, but lots of people make a good plan for their money, get excited, and then never start doing it.

Maybe you get a text and think you'll start tomorrow, or you have some bills coming and decide to wait until next week.

These delays stop you from getting going.

When you're excited about something new, that’s when you really want to do it.

But that feeling goes away fast, usually in just a day.

Then, you keep putting it off.

If you start right now, or right after reading this article, you'll get going and keep going.

Once you take the first step, it gets a little harder to stop.

Track Your Money

The first step to saving money is to make a plan for how you spend it.

If you want to save an extra $27.40 every day, you need to know exactly where your money goes.

Without a plan, it’s like trying to find your way in the dark with your eyes closed.

Making a plan is easier than you think—all you have to do is use a free tool like Mint or Spendee, which puts all your money information in one place.

Or, you can use my spending tracker template, which you can get for free here.

These tools help you see where your money goes right away.

Planning also shows you those small, unexpected expenses that add up over time.

Did you know that most people spend $18,000 a year on things they don't really need?

Or that you might be spending $219 every month on subscriptions, which is $133 more than you thought?

By looking at your plan, you'll find these hidden costs.

Keep track of your spending for the next 30 to 60 days, and you’ll see where you can spend less on things you don’t really need.

Sounds easy, right?

Minimize Your Spending

That’s because it is.

A survey shows that cutting back on certain things is easy.

Things like:

eating out,
buying alcohol,
paying credit card fees,
getting new clothes,
using too much electricity,
smoking,
using too much heating or AC,
unreturned items,
buying convenience packaging,
and playing the lottery

can really add up.

Most of these are things you can control.

For example, you can choose to eat at home instead of going out, not buy alcohol, or pay off your credit cards to stop paying fees.

But if you don't want to change your life much, there's another way to save.

Look at your usual costs and see if you can get the same thing for less money.

Take car insurance, for example—when was the last time you looked for a better price?

With just 30 minutes of searching, you could find a cheaper choice for the same coverage.

The same goes for your internet and phone bills; there are often cheaper choices available.

By thinking like this and sometimes just asking for discounts, you can save a lot.

Remember, saving money can have a big effect compared to making more.

Let me explain: when you get a dollar, some goes to gas, insurance, and taxes, so you end up with about 75 cents.

But when you save a dollar, you keep all of it right away.

This shows how strong saving can be.

For example, if you spend $50 on a meal, you actually need to get about $67 before taxes to cover that cost.

But if you don’t go out to eat, you right away have $50 more in your pocket.

Of course, this way of thinking isn’t for everyone.

Some people like to have fun with their money by using it.

If that’s you, there’s another idea to think about.

Pay Yourself First

And that would be "paying yourself first."

This means putting some of your money into savings before you spend it on anything else.

Instead of paying for your home, food, fun, and then saving whatever's left, you start by saving money first.

Many people don't keep a close eye on how much they earn or spend.

By saving first, you can save more right away.

The big issue for most people isn't how much they earn; it's how much they spend.

As people make more money, they tend to spend more too.

Imagine this: almost half of the people who make over $100,000 a year still live paycheck-to-paycheck.

This is pretty close to people with average incomes, where 62% are in the same boat.

This means that as people earn more money, they often spend more money too.

This idea is called lifestyle inflation—when you earn more, you end up spending more to match your higher income.

This can make a cycle where you always need more money.

To stop this cycle, set up automatic savings.

Arrange for some money to go straight into your savings account before you spend any.

When this happens automatically, you're less likely to spend it and will get used to living on what's left.

Now, let's talk about ways to save $10,000 in a year.

1: Your Housing

Let's talk about housing, which often takes up the most money in people's budgets, according to the Consumer Expenditure Survey.

Cutting these costs can help you save a lot of money.

For example, if you have an extra room, you could think about renting it out to make some extra money.

If you're renting, try talking to your landlord to see if you can pay less rent.

When your lease ends, think about moving to a cheaper place.

Homeowners can save money too, like by finding cheaper insurance or using less heat or air conditioning.

These changes could help you save $10 more each day without much work.

2: Your Transportation

Next up is transportation.

Did you know that the average car payment is around $726 a month?

That’s a lot!

But this also means there’s a big chance to save money here.

Unless you really need a fancy car for your job, it’s best to choose a car that is affordable, reliable, and good on gas.

Try to keep driving it for as long as it runs well.

Also, check your insurance coverage—you might be paying more than you need to, especially if your car is older or you drive less than average.

By choosing a cheaper car and shopping around for better insurance rates, you could save about $5 every day.

3: Your Taxes

Next, let's talk about taxes.

While housing costs take up a big part of most people's budgets, taxes can be an even bigger expense.

On average, single workers in the U.S. spend about 30.5% of their income on taxes.

This means that almost a third of the money you earn each year goes to paying taxes.

Understanding how taxes work and using them to your advantage is very important.

You can often save a lot by knowing what deductions and credits you qualify for.

Getting help from a good accountant can be really useful—they can find ways to lower your tax bill by a lot.

By being smart about your taxes, you could easily save an extra three dollars every day.

4: Your Meals

Number four on our list is food.

A study found that the average person spends about $9,300 each year on food, which is around $780 per month.

Surprisingly, about 40% of this spending, which is $303 per month, goes toward eating out.

I'm not here to tell you off for eating out, even though cutting back could save you a lot of money.

Instead, I have a simple idea.

If you eat out mainly for convenience, think about cooking at home—it's cheaper.

But if eating out is about enjoying time with friends and family at a nice restaurant once in a while, it's okay to budget for that.

By spending less on unnecessary meals, even by just $3 a day, you can slowly save money and improve your financial situation over time.

5: Your Debt

Next, let's talk about paying off debts.

On average, Americans have about $6,500 in credit card debt with a high interest rate of 28 percent.

That's an extra $152 every month if you don't pay off your full balance.

Instead of letting this debt grow, focus on cutting expenses and using those savings to pay down your credit card balances.

Once you've cleared this debt, you'll have more money available for saving and investing however you want.

But until then, keep working to reduce your debt as much as possible.

This approach could mean saving an extra $5 each day for most people.

6: Your Clothing

Lastly, number 6 is clothing.

Americans are spending an average of $162 each month on clothes.

Now, take a moment to look in your closet and honestly think about how often you wear those clothes.

You probably find yourself wearing the same few outfits most days.

If this sounds like you, think about cutting back on how much you spend on clothes, maybe by half.

By doing that, you could save about an extra $3 every day.

So, by making these six changes, you could save a little over $27 each day, adding up to a significant $10,000 in savings over a year.

But there's also another way to think about this.

Earn some extra money

Another option is a side job.

Let's be honest, if you want to quickly earn $10,000 in a year, getting a part-time job is the easiest way.

I'm surprised how some people want to complicate things.

If you don’t want to cut back on spending or eat cheap food every night, increasing your income is the way to go.

It doesn't have to be fancy or pay a lot.

You could help out at a local store, do freelance work, or work extra hours in the evenings or on weekends.

Even if you make $15 an hour after taxes, working less than two hours a day on average for a year can help you reach your $10,000 goal without big changes to your life.

Plus, the more you work, the better you get, so you can earn and save more money faster.

Another idea is to ask your boss for a raise.

Also, when you save this money, put it in a high-yield savings account, money market account, or CDs to make the most of it.

Right now, there are many options that offer four to five percent interest.

This means after you reach your $10,000 goal, you could earn an extra $500 a year just by saving and following these steps.

That's all, folks.

Join the newsletter here, thanks for reading, cheers!

- Ivan