8 Tips to Save $20,000 in 1 Year

8 Tips to Save $20,000 in 1 Year

How would you like to have an extra $20,000 in savings by the end of this year? You could sure do a lot of nice things with this money. But how can you put it together? It is easier than you think! Below are 8 simple ways on how to do it. Start getting serious about your saving goals today!

1. Check your spending.

How much are you spending? This is a good question to start with. Look at the current state of your expenses and savings to come up with a financial plan.

2. Set up automatic transfers.

Putting away a set amount of money automatically, and at regular intervals, ensures a portion of your income is saved each month. There is less temptation to spend the money elsewhere!

3. Cut back on online subscriptions.

$5 or $10 does not look like a lot but they eventually add up. Check your credit card statement for online subscriptions and be brutal about cutting out those that you do not use as much.

4. Determine your spending traps.

Do you go to the grocery store for a carton of milk and end up spending $150? Everyone succumbs to their own money trap. Figure out what triggers you and do your best to avoid it until you can gain a bit of self-control.

5. Replace costly rituals.

It can be that morning brew or grabbing too many cocktails – whatever expensive ritual you have, challenge yourself to cut it out or a year. Save all the money that you would have used and get ready to be surprised at how much money your coffee or cocktails cost in one year.

6. Hang on to your clothes.

Speaking of challenges, why not challenge yourself to hold on to your clothes and not buy anything new or a year? Mindless shopping really adds up and these usually involve clothes, shoes, and accessories. See how much you can save on these in a year and watch your bank account swell.

7. Rethink tasks that you have outsourced.

How much energy will it really cost you to clean your house, wash your car, or do your yard work? Instead o outsourcing these small activities, why not take them on yourself to save some extra money?

8. Write an eating-out budget.

It may be hard to eat all your meals at home so simply write an eating-out budget while having most meals at home. Start by committing to eating breakfast at home and taking lunch to work then work with your budget for dining out at night occasionally.

Ian Schindler