Saving $10,000 isn’t unattainable for most of us…but it may involve some lifestyle changes. Even so, after you’ve made that financial commitment, you’ll usually be able to get more than you bargained for.
After a few years of living independently, I discovered I was wasting money on items I didn’t require. My closet was stuffed with clothes I’d never worn, my cabinets were packed with food I’d never eat, and my flat was overflowing with things I didn’t even like.
It dawned on me that it wasn’t about how much money I made, but how much I kept.
My friend and I decided to embark on a six-month challenge to see how much money we could save. We wanted to get out of the rat race and spend our time doing what we enjoyed.
I was able to save $10,000 in less than six months without even trying. I could have saved more if I had put in more work, but I thought this amount would suffice for now and I would save the rest later.
Some of them are regular expenses that come back again and again, so they may not be actions you can take right away because they require time to change.
These are simple to implement in your own life, regardless of your financial situation. Concentrate on one or two things you can change, and it will build up over time. That was something I tried hard to change. It took a lot longer than I expected, but I eventually made it. You can do the same.
Maybe you’re wondering how I achieved it or if it was even possible. It is achievable, and I will walk you through the steps I took.
The first thing I did was set a goal
Having a goal is crucial, especially when it comes to saving money! You must have that goal in mind in order to work toward it. In six months, I wanted to save $10,000.
I began practising visualisation once I knew what I wanted to achieve. Visualization is the act of envisioning yourself having already accomplished your goal. When you imagine your goals on a daily basis, you’re saying, “I want this!” You’re also conditioning your mind to believe that you’ll succeed.
Stop making excuses and lying to yourself
It’s easy to make excuses for why saving money is hard. We have rent or a mortgage, student loans, and other bills to pay, so there’s not much money left over.
But the truth is if you really want to save money, you can — and it doesn’t have to be that painful. The first step is paying close attention to every penny you spend and see where your money goes.
I made a spreadsheet of everything I spent money on during a one-week period. It was eye-opening to see how much I was spending on things like coffee, takeout lunches, and shopping.
Cut out the excess
This is the hardest part of saving: deciding what to give up in order to reach your goal. What are the things you can’t live without? What are the things that are nice-to-haves? It may be worth reducing your cable package or taking on a roommate if it means saving more money.
I started by looking at my biggest monthly expenditures, which included rent, utilities, and food. I wanted to live comfortably without sacrificing too much of my lifestyle. So I cut out a lot of the little things — like daily coffee runs and unnecessary snacks — that I didn’t really need in my life.