Saving money shouldn’t mean that you have to cut out fun completely or obsess over every penny. You can do it almost automatically by building a system that works in the background.
You can build long-term wealth by making small changes, breaking down goals, paying yourself first, and creating a budget.
In this guide, we’re sharing six tips to help you save $10,000 in one year without sacrificing the little things that make life fun, like Netflix or the occasional takeout meal.
1. Break down $10K into small micro-goals
Saving $10,000 in a year might sound overwhelming at first, but it’s much more achievable when you break it down into smaller, bite-sized goals.
For example, instead of focusing on the full $10K, divide your goal into monthly, weekly, or even daily savings targets. Here’s what that looks like:
| Timeframe | Amount to Save |
| Monthly | $833 |
| Biweekly | $385 |
| Weekly | $192 |
| Daily | $27 |
Saving smaller amounts more often can make it easier to stick with your plan, since it’s simpler to build into your routine and budget.
2. Perform a financial audit
After you set your savings goals, you need a plan that will help you reach them.
Your first step is to understand where your money is currently going. A financial audit will give you a clear picture of your income, expenses, and spending habits so you can identify opportunities to cut back and redirect that money to savings.
Here’s how to do it:
-
Gather your bank and credit card statements from the past few months. Or, if you’re using Lunch Money, you can connect all your financial accounts and automatically track and categorize your transactions as they happen. This makes it super easy to see your top spending categories and determine where your money is going.
-
As you review your expenses, look for ways to reduce your spending. That might mean cooking at home more, switching to generic brands, or shopping at thrift stores or Facebook Marketplace.
-
Here’s the critical part: After you find ways to reduce your spending, transfer any money you save into savings, putting it toward your $10k goal.
3. Consolidate high-interest debt
Debt doesn’t just cost you interest — it also limits how much you can save each month. In other words, if a big chunk of your income goes toward credit card bills every month, that’s less money you can put toward your $10,000 goal.
By consolidating debt, however, you can pay off your debt quicker and free up some money for savings.
Debt consolidation involves combining multiple debts into one loan with a single payment. Ideally, you can also secure a lower interest rate and reduce your monthly payment, giving you more income to send to savings.
Another option is to take advantage of a credit card balance transfer offer. This involves transferring the balance from a high-interest credit card debt to a card offering a 0% APR introductory period (usually 12 to 18 months), making it easier to pay off the debt.
If you do this, make sure you’re aware of the offer conditions. There is a fee for balance transfers, and you still have to make monthly payments. And if you don’t pay off the entire balance before the 0% offer expires, you’ll start accruing interest on the remaining balance at the standard credit card rate!
4. Pay yourself first
Here’s how most people try to save:
They get their paycheck, cover bills, buy groceries, grab takeout a few times, maybe do some online shopping, and then save whatever’s left over.
The problem? It’s way too easy to burn through all your money without realizing it! You’ll often have very little left to save at the end of the month — or nothing at all.
If you want to save $10,000 in a year, you need to flip the script and pay yourself first.
When you get your paycheck, transfer money to your savings immediately. That way, you prioritize saving over spending, not vice versa.
But how do you know how much you can save when you haven’t paid your bills yet? Well, that’s where your budget comes in!
At the beginning of each month, decide how much money you need for essentials such as rent, utilities, and groceries. Once you know the amount you need for necessities, you can figure out how much you can save.
Maybe that’s only $50 to start, but eventually, you can begin stacking that savings!
Lunch Money can help you create a budget based on your needs and wants. It even lets you set a dedicated savings category to help you stay on track.
Once you know your target savings amount, set up a recurring transfer every payday, automating the process. This will help you save without thinking about it and stay on top of your $10,000 savings goal!
5. Use the “Hidden Savings Hack”
Want an easy way to save money without having to think about it? Open a separate online savings account that isn’t connected to your regular bank, and think of it as your “hidden savings account.”
Use this account to stash any extra money you receive outside your regular paycheck. When spare cash comes your way, transfer it to your hidden savings.
Some examples include:
- Bonuses from work
- Tax refunds
- Stuff you sold on Facebook Marketplace
- Side gig income
- Cash from birthdays or holidays
Because this money is “out of sight, out of mind,” you’re less likely to touch it.
Look for an online bank offering a high-yield savings account with a competitive interest rate (many are paying 3% to 4% APY right now). This way, you can grow your balance even faster through compound interest.
Just check the fine print for any monthly fees or minimum balance requirements that could offset your savings.
💡 Bonus Tip: Pairing this hidden account with regular automated transfers is another excellent strategy if you’re trying to save $10,000 in a year.
6. Retrain your brain!
The brain is one of your biggest allies when it comes to reaching your savings goals. If you believe you can save $10K in a year, you’ve already set yourself up for success. If you’re constantly down on yourself, it will be a lot harder to execute.
Here are a few tips to help you hack your brain and become someone who saves regularly:
-
Set realistic goals: As we mentioned earlier, break your large goals into smaller ones that you can reach in the short term. Hitting those goals will give your brain positive reinforcement and keep you motivated to continue saving.
-
Create a routine: Decide when you’ll transfer money to savings and stick to it. By attaching it to another routine, like getting paid, you’ll be more likely to make it a habit.
-
Ditch negative self-talk: Beating yourself up about money won’t help you save more. Replace negative thoughts like, “Every time I save, something else comes up,” with positive ones like “I’m saving consistently and will hit my goal.”
-
Remind yourself of the why: What are you saving for? A solid emergency fund? A down payment on a house? Whatever your end goal, remind yourself why you are saving.
-
Celebrate the small wins: When you hit a milestone, do something to celebrate! Treat yourself to some ice cream or dance to your favorite song. Just make sure to give yourself credit for what you’ve accomplished.
If you change your mindset, saving will become second nature. Then, when planning how to save $10k fast, you’ll feel so much more confident about the steps you need to take.
Summary
Saving $10,000 may sound like a lofty goal, but it’s definitely within your reach with the right strategies and mindset.
Breaking your savings target into micro goals can make it seem more doable. Then, you can create a game plan for how to save $10,000 in a year.
Start by performing a financial audit, consolidating any debt, and deciding to pay yourself first. If you retrain your brain by staying positive and consistent, saving money will become another part of your daily routine.
If you want a step-by-step walkthrough of these tips, check out our YouTube video on how to save $10K fast.
FAQs
What is the $27.40 rule?
The $27.40 rule is a simple way to think about how to save $10,000 in a year. It suggests saving $27.50 of your income daily, which adds up to $10K annually ($27.40 x 365 days = $10,001).
What is the best money-saving challenge?
There are several fun money-saving challenges out there. Some include the 52-week money challenge, the roll-the-dice challenge, and the 100-envelope challenge.
What is the 50/30/20 rule?
The 50/30/20 rule is a budgeting method that recommends 50% of your income go toward necessities, 30% toward wants, and 20% toward savings.
What is a realistic amount to save each month?
It depends on the person, but a good rule of thumb is to save at least 10% of your income or 20% if you want to save more aggressively. However, any amount you can save is always a win.
