How I Saved $10,000 in a Year and You Can Too!

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When I used to counsel clients, I would always tell them the importance of saving. Most of them wanted to save, but couldn’t figure out how. I helped them by telling them the story of how I saved $10,000 in a year and how they could, too.

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I remember the day like it was yesterday. It was my 25th birthday and I was struggling financially. Many of my friends seemed to be enjoying some aspect of financial success, but for me it was like the carrot on a stick in front of a rabbit. So close, yet so far away. I went to the library and read numerous books on how to save money and decided now was the time. Here’s how I did it!

Set A Specific Financial Goal

I decided that I wanted to save $10,000 in a year. Why did I pick this number? Well it was the amount I would owe on my car in 12 months. I figured if I could save enough to pay off my car, I’d feel like I had accomplished something. Now, there was no real desire to pay the car off, but this decision gave me something to aspire to, so off I went.

Everyone should set a financial goal. This gives you something that you can work towards instead of just trying to save money with no purpose.

Streamline Bills

I called all of my utility companies and got on their equal payment plan. This gave me something I’d never had before; consistency with my electric, gas, and water bills. I could basically build my budget knowing that these bills would be the same 12 months out of the year. You’d be surprised at how much easier it is to manage your money when you know exactly what you need to pay out each month.

Since my bills were now streamlined, I looked at the difference I paid in the coldest months on my gas bill and the warmest months on my electric bill. I took note of the amounts I’d paid in the past during those months and saved the difference. This allowed me to save $1233 over the 12 month period.

Payed Myself First

Here’s where the savings really began. I looked at how much money I’d spent over the last 6 months on crap I didn’t need. It’s amazing how much mindless spending most of us can do while still screaming we have no money, no savings, etc. I was spending upwards of $300 per month on eating out, buying clothes, and hanging out with friends in bars. I stopped cold turkey. This allowed me to save $3600 over a 12 month period.

Sold Some Stuff

I had a yard sale and sold tons of clothes, shoes and furnishings that I weren’t being worn or used. This brought me $500. Most people have more things than they need, so having a yard or garage sale can net them a substantial amount of cash. Take a look around your home and determine the items that you haven’t used in at least a year; then sell, sell, sell!

Got A Second Job

Learning to type in the 7th grade was one of the best skills that I learned. I used this and a great sense of taking care of customers to land a second job working with a trucking company part time. Since this salary wasn’t needed to take care of any particular bills, I used it to get to the finish line of my goal. I made $4850 over a 10 month period.

Now You Know How I Saved $10,000 In A Year

This is how I saved $10,000 in a year. By my 26th birthday, I’d accomplished my goal and went on to save so much more over the years. If you need to save money, set a goal, make a plan and get started today. Hitting $10K is easier than you think.

Now that you know how I saved $10,000 in a year; what are some creative ways you’ve used to save money? Please share with us in the comments below.

If you would like to learn more about saving, check out the following articles:

 

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