How To Save $10K Effortlessly (6 Money Saving Tips)

Let’s break down how to save $10,000 effortlessly.

I will share 6 strategies that anyone can use to make it easy for them.

Let's be honest, many of us are facing financial challenges.

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

For those under 35 years old, the median savings is just $5,400, and more than one in three Americans have more credit card debt than emergency savings.

But it doesn't have to be this way.

Today, I'm going to share six incredibly simple strategies that can help you save $10,000 quickly, and the best part is, it won't cost you a dime.

Just join my weekly newsletter, we focus on investing and personal finance content if that’s what you like, so thank you in advance!

Now, let's get started.

In my experience, when it comes to achieving any financial milestone, it's helpful to break down exactly how much you want to save and in what timeframe.

Breaking Down Your Goals In Smaller Chunks

Here's the thing: if you just tell yourself,

I want to make $10,000 as fast as possible,

you're setting yourself up for a problem because there's no clear finish line, and the timeline is indefinite.

It's important to have a realistic timeframe for when you want to achieve your goal.

So, let's say you want to save $10,000 in a year.

In that case, you'd break it down like this:

$833 per month,
$27.40 per day,
$1.40 per hour,
2 cents per minute.

Okay, maybe you don't need to go that far, but you get the idea.

Breaking down your goal into a specific time frame gives you actionable steps to work towards on a smaller scale.

Saving $10,000 might seem overwhelming, but when you break it down to $27.40 per day, it becomes much more manageable.

From there, you can move on to step two.

Just Start Today (Right Away)

Start right away.

It might seem obvious, but you'd be surprised how many people come up with a great financial goal, get excited about it, and then never start.

Maybe you receive a text message and forget about it for a day, thinking you'll start tomorrow.

Or perhaps you have upcoming expenses and decide to delay until next week.

Whatever the reason, delaying only holds you back.

What I've found is that you're most motivated when you're excited about something new, but that excitement wears off quickly, usually within a day.

Then, you're left with the reality that you've been procrastinating.

By starting immediately, or at least as soon as you finished reading this, you'll begin to build momentum.

Once you get started, it becomes just a little bit harder to quit.

Budgeting & Tracking Your Money

The first thing you should do is budget.

If you're aiming to save an extra $27.40 every day, it's crucial to understand exactly where your money is going in and out of your account.

Without a budget, it's like navigating in the dark blindfolded and hoping you don't bump into anything.

Budgeting is actually quite simple—all you need to do is sign up for a free money tracking platform like Spendee that gathers all your financial information in one place, or you could use my spending tracker template which is available for a free download.

From there, you can easily track where your money is being spent in real-time.

The benefit of budgeting is that it helps you identify those random, small expenses that can add up over time.

For instance, did you know that the average American spends $18,000 a year on non-essential purchases?

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

When you dive into your budget, you'll start noticing these details that you might have overlooked before.

By tracking your spending for the next 30 to 60 days, you can identify areas where you can cut back on expenses that aren't absolutely necessary.

It sounds simple right?

Reducing Your Expenses

Well, it's actually quite simple.

According to one survey, cutting back on certain expenses is relatively easy.

These include:

eating out,
alcohol,
credit card interest,
clothing,
electricity,
cigarettes,
heating or AC,
unreturned items,
convenience packaging,
and lottery tickets.

Consider that most of these are discretionary expenses that you have direct control over.

For instance, you can opt to eat at home instead of dining out, skip ordering alcohol, pay off credit card debt to avoid interest, and so on.

However, if you're not keen on changing your lifestyle but still want to save money, there's another approach.

Take a closer look at your most common expenses and ask yourself how you could get the same thing for less.

For example, consider car insurance.

When was the last time you shopped around?

With just 30 minutes of effort, you could likely find the same coverage for a lower price.

The same goes for internet and cell phone bills—there are numerous alternatives available that could save you a significant amount of money.

Applying this mindset to all your expenses, and sometimes simply asking for discounts, can help you cut back.

It's crucial to recognize that saving money can have a more significant impact than earning more.

Now hold on, let me explain what I mean here.

When you earn a dollar, various expenses like gas, insurance, taxes eat into it, leaving you with around 75 cents.

But when you save a dollar, you keep the entire amount immediately.

This illustrates the power of saving.

For example, if you spend $50 on a meal, you'd need to earn around $67 before taxes to cover that expense.

However, if you decide not to dine out at all, you have $50 extra in your pocket right away.

Of course, this approach isn't for everyone.

Some people prioritize enjoying life and spending money.

In that case, there's another option to consider.

Prioritizing Yourself First For Money

And that would be the concept of "paying yourself first."

This idea challenges the typical spending pattern where people cover their:

housing,
transportation,
food,
entertainment,
and other expenses first,

and then save whatever is left over.

Instead, paying yourself first involves setting aside a certain amount of money for savings right at the beginning, before you spend on anything else.

Essentially, you prioritize saving before any other expenses.

Let's be honest, most people aren't closely tracking their income, budgeting, or keeping tabs on their spending habits.

Implementing this strategy can have an immediate impact on how much you're able to save.

Additionally, from what I've observed, many American households don't necessarily struggle with earning enough money—they struggle with controlling their spending.

Expenses tend to rise alongside income, leading to a cycle where people constantly need more money to support their lifestyle.

This phenomenon is known as lifestyle inflation, where as income increases, so do expenses.

It creates a never-ending cycle where you:

earn more,
spend more,
and then need even more to maintain that lifestyle.

To break free from this cycle, automate your savings—set up automatic transfers to your savings account before you have a chance to spend the money.

Once the money is out of sight, it's easier to forget about it and adjust to living on the remaining income.

So in terms of how to save $10,000 a year, here’s a few ideas:

Idea #1: Where Do You Live?

First off, let's talk about housing.

According to the Consumer Expenditure Survey, housing typically consumes the largest portion of the average budget.

So, if you can find a way to lower these costs, you're on the right track.

I understand it's easier said than done, but there are some practical steps you can take.

For instance, you could consider renting out a spare bedroom to generate extra income.

Alternatively, you might try negotiating with your landlord for a lower rent or look for a more affordable place when your lease expires.

If you're a homeowner, you could explore options to lower your insurance rates or adjust your thermostat to save on utility bills.

There are plenty of ways to reduce housing expenses, and by implementing just a few of them, you could potentially save an extra $10 a day.

Idea #2: How Do You Get Around?

Second, we have transportation.

Currently, the average car payment stands at a staggering $726 per month, which is quite unreasonable.

However, it presents a significant opportunity to save money.

My suggestion is, unless you require a high-end vehicle for professional purposes, opt for the most affordable, reliable, and fuel-efficient car you can find.

Drive it for as long as possible, ideally until it's no longer roadworthy.

Additionally, review your mileage to ensure you're not overpaying for insurance premiums, which may already be inflated.

By downsizing and comparing options, you could potentially save an extra $5 per day in this category.

Idea #3: Taxes

Third on the list is taxes.

Remember when I said that housing consumes the largest chunk of the American budget?

Well, that's true until you factor in taxes.

Data indicates that the average single worker in the United States forked over 30.5 percent of their income to taxes.

Essentially, this means that about one-third of your entire working year is dedicated to earning enough just to settle your tax bill with the IRS.

Consequently, it's more crucial than ever to have a basic grasp of how the tax system functions so you can leverage every available resource to maximize your savings.

In my experience, enlisting the services of a competent accountant can make a significant difference in saving you a substantial amount of money.

By employing this strategy, you should be able to save at least an additional three dollars per day.

Idea #4: What Do You Eat?

Number four on the list is food.

According to a study, the average person splurges around $9,300 annually in this category, which translates to roughly $780 per month.

Surprisingly, about 40 percent of this expenditure, totaling $303 per month, goes towards dining out.

Now, I'm not here to scold you for spending money on dining out, even though cutting back could save you a significant amount of money.

Instead, I'll offer a more practical suggestion.

If you're eating out for convenience, consider cooking at home as a cost-effective alternative.

However, if your dining out experiences are about enjoying quality time with friends and family at an affordable venue occasionally, then it's perfectly fine to budget for that.

By curbing unnecessary spending in this area, even by just $3 a day, you'll gradually accumulate savings that can positively impact your financial standing.

Idea #5: Debt Repayment

Fifth, let's talk about debt repayment.

On average, an American carries around $6,500 in credit card debt at a staggering interest rate of 28 percent.

That equates to an additional $152 every month if you're not paying off your bill in full.

Instead of allowing this debt to accumulate, prioritize cutting back on expenses and allocating those savings toward paying down your credit card balances.

Once you've cleared this debt, you'll have the entirety of that money available for saving and investing as you see fit.

However, until you've eliminated your debt entirely, focus on reducing it as much as possible.

For the average person, this approach could result in an extra $5 saved per day.

Idea #6: What You Wear?

And lastly, number 6 is apparel.

Americans are splurging an average of $162 per month on clothing.

Now, take a moment to peek into your closet and honestly assess how many of those garments you actually wear regularly.

Chances are, you find yourself rotating the same handful of outfits day in and day out.

If this resonates with you, consider cutting down on your clothing expenses, perhaps by half.

By doing so, you could easily save an additional $3 each day.

So, just by making these 6 adjustments, you could accumulate a little bit over $27 a day, which translates to a remarkable $10,000 in savings over the course of a year.

However, there's also another approach to consider.

Starting A Side Hustle For Additional Income

Which is a side hustle.

Let's face it, if you're aiming to quickly make $10,000 in a year, getting a part-time job is the most straightforward route.

It surprises me how complicated some people want to make things.

If you don’t want to cut back on expenses or live off rice and beans every night, then boosting your income is the way to go.

It doesn't have to be glamorous or pay a fortune, think of:

lending a hand to a local business,
doing freelance work,
or taking on some extra shifts in the evenings or weekends.

Even if you're earning $15 per hour after taxes, working less than two hours a day, on average, for a year can help you reach your $10,000 goal without any major lifestyle changes.

Moreover, the more you work, the more skilled you'll become, enabling you to earn and save even more money at a faster pace.

Alternatively, you could also consider asking your employer for a raise.

Lastly, since you'll be saving this money, ensure you maximize its potential by placing it in:

a high-yield savings account,
money market account,
or CDs.

Currently, there are numerous options offering between four and five percent interest, which means once you reach your $10,000 target, you could earn an extra $500 a year just by diligently saving and following the steps outlined here.

The key takeaway is that all of these steps may start small, but they gradually build up over time.

So that’s it, share this with your family and friends if you liked this, and get my free spending tracker here.

And also check out my newsletter for the written version of investing and personal finance tips delivered right to your inbox every week.

Thanks for reading, cheers!

- Ivan