Frugal Living YouTuber Kate Kaden: How To Save $10,000 This Year
Written by
Gabrielle Olya
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Molly Sullivan
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Saving $10,000 in a single year might seem like an impossible feat, but if you break that down into smaller goals, it can be achievable. As frugal living YouTuber Kate Kaden points out, that’s just $27.40 per day or about $200 per week.
Here’s a look at a few ways you can reasonably save that amount.
Look For Ways To Cut Back on Household Costs
Among household costs — the essentials you need to keep your day-to-day running smoothly — housing is likely your biggest expense. If you can cut back on this cost, you’ll be well on your way to saving $10,000 in a year.
“If there is a chance of downsizing or living in a place where it is not so expensive or gaining a roommate so that you can afford your home more affordably, that is something you want to consider because that will save you big money,” Kaden said in a YouTube video.
Next, consider ways to cut down on your utilities costs. These can include things like “turning the lights off when you leave the room, not running the heat higher than it needs to be, not running the A/C cooler than it needs to be,” Kaden said. “Being wise and intentional [about] your utilities is a great strategy to not spend more than you need.”
Insurance is another necessary expense, but it’s possible to save in this spending category too. Kaden recommends negotiating with your current providers or shopping around to find a better deal. You should do the same with your mobile phone plan.
“That’s definitely something to consider when you’re trying to scrounge up $27.40 a day,” she said.
Car payments can be another major expense.
“I currently do not have a car payment,” Kaden said. “Having an affordable car and an affordable car payment or no payment at all is very important.”
Look For Ways To Earn More Money
As Kaden notes, you can save $27.40 per day either by spending less or by earning more — or a combination of both.
“What could you do to make an additional $200 a week to really pump up your income and get to that $10,000 faster?” she said.
Consider taking on a side hustle or getting a part-time job to help reach your savings goal, Kaden said.
Be Mindful About How Much You Spend on Gifts
Kaden notes that we often spend more than we realize on gifts.
“Obviously, Christmas is a big one. But what about birthday gifts? What about baby showers? What about bridal showers? What about weddings?” Kaden said. “What about all the little things that add up that you just get because you’re getting it for your friend or your family?”
While it can feel good to give to the people we love, Kaden said to try cutting back on spending on gifts — especially if this spending puts your financial well-being at risk.
“Be very aware of your gifting,” she said. “If you can’t afford your mortgage right now, you can’t be buying elaborate gifts for people, even though you want to. If you’re struggling to pay your bills and don’t have any retirement built up or don’t have an emergency fund, you’ve got to prioritize. You’ve got to take care of yourself.”
Cut Back on Nonessential Spending
Spending on the nonessentials, like dining out, entertainment and shopping, can easily get out of hand and derail your savings goal.
“This can make or break you when you’re thinking about your $27.40 a day,” Kaden said. “Think about going to lunch with a friend and picking up the tab. There it is — $27.40 out the window. You want to go shopping for clothes you don’t need? $27.40? Try double, triple, quadruple, who knows when you go on a shopping spree. That goes quick.”
While it’s OK to spend money on things you don’t need, it’s important to carefully assess your spending and either look for ways to cut back or look for ways to make up for your spending in these categories.
“This is where making choices about going out versus staying home can really come into play,” Kaden said. “Can you find things at home that are going to entertain you instead of going out? Or if the thing is really important in your lifestyle category, could you cut back somewhere else in your household?
“It’s important to have a little bit of fun, so this lifestyle category has a lot of wiggle room,” she continued. “And again, if you [don’t have] the money for this category and you’re not able to have the fun that you’re looking for, where can you make more money?”
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