How to Save $10,000 in One Year

by Redeeming Riches on October 17, 2014

save-10000-in-one-yearYou want to know how to save money? Are you particularly interested in saving 10,000 dollars in a single year? Though it may sound like a very difficult task, commitment to making financially savvy choices will help you get there.

If you are really committed to learning how to save money, you’ll need to deal with one problem that many people experience. So many individuals feel committed to save money until they experience an emergency. This is when all of the plans fly out of the window.

In case you have experienced this as well, or you’re just starting to think of saving some cash for the future, here is some advice so you can work your way around the obstacles.

Reduce Your Household Expenses
One of the best ways to save money is to limit the expenses of the entire household. Here’s how you can do it:

  • Efficient heating and cooling will be essential. Putting on more clothes during the winter is a great idea if you want to cut down on AC usage.
  • Choose other methods to decrease utility bills. Buying energy efficient light bulbs, installing smarter switches and investing a bit in Energy Star appliance will deliver significant utility bill reduction.
  • Don’t spend too much on luxuries. This rule should be introduced for yourself and for all other family members. Cut on dining out, rely on sales to buy new clothing and replace luxury items with comparable items that are cheaper.
  • Special discounts on bills and taxes. A lot of institutions and providers offer special discounts or offers if you pay in advance, or if you pay for several months at once. Such discounts are also available for loyal clients who have never missed a payment.
  • Get that insulation done. Good insulation will do wonders for your bills. Your home will be cooler in the summer and warmer in the winter without the need for daily air conditioning.

Create a Plan… and Stick to It!
Create a plan before doing anything else! The first thing you should do is become you own accountant. Here’s how to do it:

  • First, you need to list your priorities – the bills and taxes. To do this, you need to find your highest bill and multiply it by 12. Dedicate this amount to paying bills on a monthly basis. The leftover money is transferred to the next month’s bill. This means you will often have money left after the year is over.
  • You need to think of all those other payments you have to make on a monthly basis. These include expenses for food, transportation and going out. Account for the necessary; do not plan to use extra services if you don’t really need them.
  • Finally, you’ll have to stop using the credit cards to make payments. Forget about the existence of the credit card and the fake financial security that it creates. Excessive reliance on the credit card is the best option for getting in debt. You need a prepaid credit card, so you know just how much you can spend. Setting your own limit is the best idea when you’re wondering how to save money.
  • Last but most important – believe in yourself. Saving 10,000 dollars in a year is not impossible, but it is hard. You need to stay on track with your plan and make no exceptions. Breaking the rules just once will have significant impact on your fiscal discipline and could possibly be detrimental to your money saving efforts.

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