Typically, I don’t designate an annual theme word for myself. However, this year, I’m embracing ‘building’ as my guiding principle. I am determined to grow different facets of my life, with a keen focus on augmenting my savings. Here are my handpicked suggestions and strategies for amassing the greatest amount of savings you’ve ever had in a year.
My objective is to save at least $10,000 this year. To achieve this, I’ll be investing $6,000 in my Roth IRA to maximize it, and the remaining $4,000 will bolster my emergency fund. Additionally, I aim to replenish several of my sinking funds. The essence? I’ll be pocketing quite a lot of money this year.
If your savings goals this year are ambitious too, you might be staring blankly, wondering how to achieve them. Here are some suggestions:
PRIORITIZE SAVINGS
It might sound like stating the obvious, but if your goal is to save the most you ever have in a year, savings have to take precedence over all other allocations. In my case, this means placing savings above settling our remaining debts this month.
We still have my husband’s student loans to clear, a small credit card balance, but we’ll pay ourselves first, making whatever sacrifices necessary to reach our lofty savings target. Saving a significant amount in 12 months may call for reshuffling other plans and being comfortable with that shift.
CUT DOWN ON A MAJOR EXPENSE
To speed up your savings journey, you might need to let go of a substantial expenditure to create more room in your budget. For us, it’s traveling. Despite my love for trips and new adventures, we have only one moderately budgeted trip to Washington D.C., planned this summer. We’re deferring desired vacations, like a Christmas family trip to Disney World and a cruise to save money.
Reflect on what major cost you could possibly delay, to set aside more savings this year.
STICK TO A BUDGET AND INCREASE CASH USAGE
Budgeting is the golden key to financial control and meeting monetary goals. Knowing your monthly financial posture, your incomes and expenditures, allows for discretionary spending adjustments to free more money for savings. Regular budget analysis offers clarity and peace of mind.
Ensure your budget includes a category for your specific savings target, and automate transfers to ensure consistent savings contributions.
COMMIT TO A STRICTLY FRUGAL YEAR
Can you maintain a frugal lifestyle for 12 months? Take this as a challenge. Identify cost-cutting measures that don’t leave you feeling deprived around the clock. It’s permissible to feel slightly overstretched when being super frugal, but it’s crucial not to compromise vital priorities like health or family welfare.
Similar to cutting back on big expenses like travel and housing, embrace frugality and consider strategies such as:
home-cooked meals, eating less meat to reduce grocery bills, shopping bans, thrifting, borrowing seldom needed tools, reducing reliance on vehicles, trying cheaper prepaid phone services, utilizing coupon/cashback apps, and going a year without cable or other subscription services.
EARN EXTRA THROUGH SIDE HUSTLES
Embrace additional income streams if necessary. Part-time jobs or freelance tasks are handy when trying to save substantially within a year. Determining how much extra income you want and finding suitable side jobs could greatly increase your savings.
IN CONCLUSION
While it may initially seem daunting to save a seemingly absurd amount of money, these practical strategies will astound you with their effectiveness. Prioritize savings, adhere to a budget, make sacrifices, embrace frugality, and find ways to increase your income. Before long, you’ll notice your accounts swelling in tandem with your efforts.
What are your savings goals for this year?
