Five ways to save $10,000 this year

Setting aside $10,000 in a year may feel ambitious, but with a proper savings structure, this goal is well honestly within reach. By automating savings and making strategic adjustments to monthly expenses, you can accumulate $10,000 with minimal disruption to your daily life. Here are five practical steps to help you get there.

1. Automate $500 monthly into a high-interest savings account

A direct and effective way to save is to automatically divert $500 from each monthly paycheck into a high-interest savings account. Over a year, this method alone will yield $6,000, not including the extra interest that pay come with. Not only does this approach build savings effortlessly, but high-interest accounts also offer compounding growth, maximising your returns. Setting up an automated transfer ensures consistency, helping you reach a substantial portion of your goal with ease. You will quickly learn to adjust with that $500 reduction each month, just take the plunge!

2. Cut back on non-essential subscriptions – potential savings of $600+

Reviewing and cancelling unused or non-essential subscriptions can add up quickly. Streaming services, app subscriptions, and memberships you rarely use are prime candidates. For example, eliminating a $50 monthly subscription results in $600 saved annually. Use a subscription management tool or a budgeting app to help track and review where your money is going, enabling you to cut costs that don’t contribute to your financial goals.

3. Reduce dining out to twice a month – saving $1,200 annually

Eating out and getting takeaway coffees or lunches can be costly. If you’re spending $100 a week on dining out, consider reducing this to twice a month and reallocating those funds toward groceries and meal prep. By limiting restaurant visits and bringing coffee or lunch from home, you can save around $1,200 annually. Setting weekly or monthly meal plans not only saves money but also simplifies decision-making, making it easier to stick to your goals.

4. Optimise grocery spending – saving $800 a year

Shopping with intention is key to reducing grocery costs. Plan your weekly meals, buy non-perishable items in bulk, and utilise cashback or rewards apps. Additionally, generic or store-brand products can often provide the same quality as name brands at a fraction of the price. By cutting grocery bills by just $15 a week, you’re looking at an extra $800 saved annually. These small adjustments compound over time, helping you get closer to that $10,000 target.

5. Adjust transportation habits – up to $1,400 saved annually

Reviewing your daily commute and travel expenses can yield substantial savings. If you’re currently driving daily, consider switching to carpooling or public transport, if feasible, which can reduce fuel and parking costs. Alternatively, working from home once a week, if possible, could save approximately $25 per week in commuting expenses. Over the year, these changes can lead to savings of up to $1,400, a significant boost toward your $10,000 target.

Technical tips for saving success

Implementing these five strategies will bring you close to, if not exceed, your $10,000 savings goal in a year. By automating savings, strategically reducing monthly expenses, and reviewing spending patterns, you’ll reach your target and gain financial stability. Remember, consistent savings habits lead to long-term growth—starting with these changes today will help you create a financially secure future.

If you would like more help or insights on getting you on the right savings track for your first home, get in touch with our team today! Click here to book a chat.