Saving money isn’t easy. However, you’re committed to putting aside an extra $10,000 in 2023.
Whether you’re saving for a specific financial goal or simply want a larger nest egg, you’ll never regret stashing extra cash aside. The only problem is you’re not quite sure how to do it.
You know $10,000 is a lot of money, but you feel like you’re up to the challenge. The hard work and sacrifice you’ll face will definitely be worth it.
GOBankingRates spoke with two financial experts who each offered very specific steps to guide you to your goal.
Nate Hoskin, founder and lead advisor at Hoskin Capital, created a plan to help you put an extra $10,000 aside in one year by following just four steps.
1. Maximize 401(k) Savings
“For someone in the 22% tax bracket — income between about $45,000 and $95,000 — contributing the maximum amount to a 401(k) will save you $4,950 in taxes,” he said.
2. Take Advantage of Employer Match 401(k)
Hoskin said most employers offer a 401(k) match, which essentially provides you with free savings.
“The most common structure has a total match of 4% of your salary,” he said. “For someone earning $60,000 per year, that’s another $2,400 saved.”
3. Eat Out Less
“The average cost of a restaurant meal in 2022 was $13, while the cost of a home-cooked meal sits around $4,” he said. “If you made the goal of replacing 100 meals — about a month of meals for one person — with home cooking, you would save $900.”
4. Get a Side Hustle
To save the remaining $1,750, Hoskin recommended trying to earn an extra $5 per day. He said you might achieve this by becoming an Uber driver one night per week, doing online surveys or monetizing a skill using Fiverr or Upwork.
Another plan to save an extra $10,000 by the end of 2023 comes from Tanya Peterson, a vice president with Achieve. She shared 12 steps to reach this goal.
1. Track Spending
Savings: $50 or more
“This one takes a little time,” she said, “but do it for a week or two, and it will be eye-opening to see how much you spend each day.”
She said most people can find savings of at least $10 to $15 per week.
2. Buy Generic Grocery Items
“Store-brand groceries can cost at least 10 percent less than brand names,” she said. “That means a family who spends $500 a month on name-brand groceries could save $50 every month.”
3. Save Grocery Store Rewards
Savings: $120 to $1,200
“If you have a grocery store savings card, you’ll see the savings the card accrues for you on your receipts,” she said. “Take the amount of those savings each time you visit the store and actually save them.”
4. Clean House
Savings: $250 to $1,000
“Every season is ideal for decluttering throughout the house and garage,” she said. “Organize and sell unneeded items online.”
As an added bonus, she said, knowing exactly what you have will allow you to avoid purchasing duplicate items.
5. Stop Using the Dryer
Hanging your laundry to dry might take a little longer, but Peterson said the savings can add up.
“A new electric dryer might cost 30 cents or more per hour,” she said. “If a family does eight loads of wash each week, drying all for about an hour each, consider that avoiding the dryer will save about $10 per month on your utility bill.”
6. Treat Savings as a Bill
Peterson advised getting serious about saving by ensuring it’s not an afterthought.
“Many credit unions and banks allow automatic withdrawal from checking to savings accounts,” she said. “Your employer may offer an automatic deposit feature, too, where you can deposit directly into a savings account.”
7. Cut Ties With Old Hobbies
Hobbies tend to come and go; so, if some of yours have been short-lived, Peterson recommended cashing in on the gear associated with them.
“If the equipment for your hobby is going unused,” she said, “it could be time to sell.”
8. Cancel Your Gym Membership
If you’re not a regular gym-goer, she advised canceling your membership. Even if you do use it often, she said to consider whether you could use a local recreation center instead or simply run, walk or bike outside.
9. Get Rid of Your Storage Unit
Since a 10-by-10-foot storage unit can easily cost $100 per month, Peterson said to consider whether you actually need the items in it.
10. Cut Down on Your Vice
Whether you have a penchant for alcoholic beverages — at home or at a restaurant — smoking, lattes or cookies, Peterson said cutting back can result in big savings.
11. Streamline Your Viewing
If you still have cable, she said to consider whether you could use an inexpensive antenna to watch broadcast television in HD instead. As for streaming services, she said to be honest with yourself about the ones you truly use enough to warrant the cost.
“Check the DVD and online streaming selections from your local library for a good alternative,” she said.
12. Stop Eating Out
While this might sound like tired advice, Peterson said the cost and potential savings make it worth repeating.
“In a year’s time, spending $60 a week on dining out could amount to more than $3,000,” she said. “Spending just $20 a week amounts to more than $1,000.”
While very different plans, each of the two paths above should allow you to save at least an extra $10,000 by the end of the year. Choose the option that seems like the best fit for you and get to work.
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