2 Paths To Saving an Extra $10,000 This Year

Dollar bundles on wooden background.
DenisProduction.com / Shutterstock.com

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.

Find Out: Do You Have Too Much Money in Your Checking Account?
Also: 3 Ways Smart People Save Money When Filing Their Taxes
Do You Have a Tax Question? Ask a Tax Pro

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.

Path One

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

Savings: $4,950

Make Your Money Work for You

“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)

Savings: $2,400

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.”

Take Our Poll: How Do You Think the Economy Will Perform in 2023?

3. Eat Out Less

Savings: $900

“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

Savings: $1,750

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.

Make Your Money Work for You

Path Two

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

Savings: $600

“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.”

Make Your Money Work for You

As an added bonus, she said, knowing exactly what you have will allow you to avoid purchasing duplicate items.

5. Stop Using the Dryer

Savings: $120

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

Savings: $1,200

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

Savings: $600

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

Savings: $480

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

Savings: $1,200

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

Savings: $520

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

Savings: $720

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

Savings: $3,000

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.

More From GOBankingRates

Share This Article:

facebook sharing button
twitter sharing button
linkedin sharing button
email sharing button
Make Your Money Work for You

About the Author

Jennifer Taylor is a West Coast-based freelance writer with more than a decade of experience writing about anything and everything. Since earning her MBA, personal finance has been her favorite topic, as she’s passionate about writing stories that educate, inform and empower. Specifically, she specializes in budgeting, debt repayment, savings and retirement.
Learn More

BEFORE YOU GO

See Today's Best
Banking Offers

1pximage