Saving money is one of the hardest things to do especially when you have bills to pay and mouths to feed. In this blog post I am going to explain how hard it is to save 10K. I will tell you now that it isn’t hard if you’re committed. Don’t forget to send this post to a friend that could benefit from reading this.
Are People Saving Money?
GoBankingRates did a survey and concluded that 69% of Americans have less than $1,000 in their savings account. The most shocking information that was discovered is that about half of the respondents said that they have $0 in a savings account. Only 6% have $50,000 in savings.
|How Much Money Do You Have in Your Savings Account?|
|Demographic||$0||Less than $1,000||$1,000-$4,999||$5,000-$9,999||$10,000-$19,999||$20,000-$49,999||$50,000 or more|
I highly suggest that after reading this post you check out the survey that was conducted here. It’s an eye opening article that will scare you but also motivate to start on the path to saving.
What I will say is that during this pandemic, Americans are actually putting more money into savings. According to Business Insider, Savings has grown from $9.98 trillion to $10.91 trillion. Even people that received a stimulus were actually using it to pay bills. While it’s good to see that Americans are attempting to save and spend wisely, it doesn’t shy from the true stats that show how hard it still is to save money.
Is It Hard To Save 10K?
In the beginning it is going to be tough, but creating a budget and eliminating overspending will most definitely get you to $10,000 in no time. Have a plan of saving more than half of your paycheck and having a set date of 6 months or more. The reason I say to have that time frame is because you’re most likely not making $50,000 to $100,000 a year.
The best advice I will give you is to first focus on saving $1,000. once you have accomplished that, then repeat that until you reach 10K. While saving towards your goal It would also be good if you are doing it while the money is in a high interest yield savings account.
You’ll get the benefit interest while putting money into the savings account every month.
Tips For budgetting
below are tips from Redditors on how to go about saving/budgeting your money.
Budgeting is something I never did until I was 28 years old (last year) and it was probably the single best thing I did last year. It helps you get in control of your spending, and is totally worthwhile. I use EveryDollar, the free version, which has a desktop and phone app version. It’s very simple, and I think it’s much better than doing the budget on pen and paper or using a spreadsheet.
When I did my budget for the very first month, I added up all of my spending from the previous month in different categories to see where my money was going. My categories are rent, electricity, internet, gasoline, groceries, restaurants, pet care, alarm, entertainment / other, cash, gym, and occasionally other things like clothing or whatever I don’t buy every month.
You figure how much you need to spend on things like utilities, rent, other expenses that are fixed or the same every month. You enter that into your budget and subtract it from your projected total income for that month. With the remaining money, you decide how much you want to put into each remaining category. Just don’t spend more than you make, and you’ll be able to save money.
By the way, don’t feel like you’re locked into the budget once you make it. You can always subtract from one category to add to another if you need to, as long as you don’t exceed your income. Certain months will have different expenses come up.Good Luck
Mu husband and I moved in together at a very young age, we were both naive, and we’ve grown a lot over the last 10 years. There is always something to learn, so I hope this helps.
1. Do you NEED that money you designated for X? 200 for groceries with brand name, 150 for store brand. $100 towards a new game when you already have 5 you don’t play.
2. Can you do that yourself? A small fix for your car, a/c, fridge, etc can be researched on YouTube and other places easily. Also, people at your hardware store or wherever you’re buying parts can sometimes offer advice. Make sure to budget for repairs you’ll inevitably need.
3. Is this worth a temporary fix or do you need a permanent one? If you’re going to fix said item and you intend to have it more than a couple years, maybe opt for a more expensive/permanent fix. Put away money for repairs (not just in 1 savings account).
4. Which “what-ifs”need to be accounted for in your budget? If you’re regularly sick or need medical attention, add that cost in for sure. If you expect others to live with you, put more away in case they cannot pay their share at any time. Do not share an account with someone unless you’ve been living together a couple years, and even then, be very careful. If you have an older car, put away 20 a month for repairs. (Older things sometimes need more attention.)
5. Always over-budget. We would account for electric being $150 year round (only 1 month out of the year is it that high), and when it’s lower, we put the difference aside. Budget more than you know you’ll need so you can save the “extra”.
6. Account for the unexpected. As previously stated, anticipate repairs, unexpected costs, and unreliability.
7. Ask around! We asked friends and family what they paid for bills and rent to see how ours compared.
8. Shop around, too. Spend those gruelling hours on the phone with electric companies to find out their charges vs. the other companies. Do the same with internet, cable, and other services. Also look for coupons online and codes before you sign up for any service. Your family member or friend might have a promo code, too.
9. If you are with company X for a service and they offer you a deal to add an additional service, try not to do it. You’ve budgeted for what you have already. Do you really need to add cable if you have Netflix? Do you need a homeline if you have a cell phone?
10. Don’t touch the budget and live below your means! Keep over-budgeting so you always have some more to save. Even if you move jobs making $50 more a week, just remember it’s okay to live a little frivolously. Don’t talk yourself into upgrades to show off what you have. If you need a new fridge and can afford it after saving, be sensible. Get a $300 fridge, not the $800 one. Need a car? Get a small sedan, not the expensive coupe.
11. Don’t even plan on getting credit cards. Your budget will get eaten up with payments and those payments take forever if you make the minimum. It’s tough to avoid, but credit cards while you’re so broke can be detrimental if you’re not careful. I know it’s important to build credit, but give it time. Eventually, apply for a card where you shop already and only use a tiny bit every month.
I hope these help someone! I have more if anyone’s interested in them, but I didn’t want to ramble too much.
What I found that really helps me is to add up all of the expenses for the month, or regular monthly expenses that are necessary, like rent, electricity, phone, car insurance, etc., and then create an account that will be used specifically to pay bills.
Take the total of your average bills and then, on every payday, have a portion of it directly deposited into your bills account.
Example, say that your rent, electricity, phone, car insurance adds up to $1100, and you are paid bi-weekly. You’d want to try to have half of that, $550, go into your bills account every payday. Do the same for your SO if applicable.
It’s a way to not have to suddenly come up with the full amount of the electric bill, for instance, when you’re low on funds. Not sure if this is the exact budget plan sort of thing you had in mind, but hopefully it helps.
I hope that you found this blog post useful and don’t forget to send it to a friend that will also benefit. Thanks for Supporting The Finance Starter and read other post that I written below.