How would you like to save a chunk of money over the next 12 months? Something substantial that will really make a difference in your life? Many of us have financial goals in life but very few of us actually meet them. This is down to various factors, many of which are not fault of our own. This could be the rising cost of living, changing jobs or other personal circumstances. What would you do with ten thousand pounds? Maybe you’ve had ambitions to start your own business or go on a dream holiday. Whatever you want it for, it’s actually much more manageable than you might think. Let’s have a look at how to save £10000 in a year.
Break It Down
Let’s do some basic maths. £10000 divided by 12 gives you the total amount that you would need to save every month. That would be £833.33. Every calendar month for a full year you would need to shift £833.33 into a bank account. The thing is, if you pick the right place to save, that money will actually make you more money. £833.33 in a 5% interest account will earn you £3.47 each month.
This means over the course of the year, your monthly payments would earn 78 amounts of that £3.47. The first monthly payment would earn it 12 times, the second one 11 times and so on. That means you would actually earn an extra £270.66 in interest on top of your savings.
Of course, you could cut it down into weekly savings targets instead. How to save £10000 in a year over 52 weeks would give you a weekly target of £192 to save.
Manageable Goals
Of course, this might be way out of budget for you. Perhaps you are only just making ends meet and saving this amount of money right now isn’t possible. Whilst we’re using this example, personal finance is indeed personal and you need to find a goal that is actually manageable for you. If you start on a saving challenge that is unattainable, it will do more harm than good. You’re not going to be motivated when you know you’re going to fall at the first hurdle.
Saving £5000 over the year would be £416.66 each month, or £96.15 each week
Saving £2000 over the year would be £166.66 each month, or £38.46 each week.
Find Ways To Save Money
One of the best ways to save towards your goal is by finding ways to cut back on the money you are already spending. This might be re-negotiating contracts then they come up for renewal. Maybe finding a different car insurance company is going to save you a few quid. Or it could be that slashing some unnecessary subscriptions will save you £100+ across the year. These might seem like small savings, but when you add them together they really can add up. If you are able to physically save some cash rather than spend it, you can divert that money to your savings fund.
Find Ways To Make Extra Money
As well as saving, you can also use different ways to make extra money. You could use that time in the evening when you are slumped in front of the TV to earn extra money. This could be by completing online surveys or putting yourself forward for focus groups. Maybe you can start a side hustle with your skills and pick up freelance clients that you fit around your usual job. It could even be that decluttering and selling your unwanted stuff brings in a decent amount of cash. After all, unwanted and even broken stuff still has value!
Did you know that I’ve earned over £1000 over a year, simply by switching my bank account? If there are two of you, that’s £2000 you could earn, which is a fifth of your total amount when looking at how to save £10000 in a year.
What Will You Spend It On?
There are some amazing amounts of money that can be made when you put your mind to it. Whatever your goal, work towards it and be determined to reach it. Even if you come up slightly short, you’ll have a decent amount of money in a pot ready to spend how you wish. Whether it’s that island hopping holiday, or simply making the mortgage payment this month, it can be liberating and life-changing when you start saving.
