Is it possible to save $10,000 this year? Right now, most Americans will tell you it’s near impossible to save any amount, let alone five figures, due to the challenging economic times.

However, saving $10,000 yearly more of a possibility than many people might believe. With some discipline, dedication, and a few excellent saving habits, you may find yourself smiling all the way to the bank at the end year.

Create a Budget

A budget is a financial compass that helps you track your monthly expenditures. Therefore, start by creating a budget for all your significant monthly expenses, such as rent, groceries, and utilities.

Once you get a clear picture of your entire monthly expenses, allocate a specific amount to each and come up with a fixed total. That should be your fixed total expenditure every month.

Save in a High-Yield Savings Account

Saving in a high-yield account helps grow your savings much faster than in a standard savings account. This is because high-yield accounts pay much higher interest rates on bank balances than ordinary savings accounts, multiplying your money more quickly.

Reduce Your Biggest Recurring Expenses

The most significant recurring expenses in any household revolve around food, housing, transport, entertainment, and other utility bills. Take stock of what you often spend the most money on and try to reduce each expense.

If it’s your car and house loans, consider downsizing to reduce servicing and mortgage expenses. You can also consider eating exclusively at home, buying food in bulk, and cutting out monthly subscription plans you rarely use.

Be Smart with Your Credit Card Usage

Credit card balances are one of the biggest obstacles to saving, as they accrue hefty interest fees every additional month they go unpaid. Therefore, try to clear all your pending credit card balances or transfer your overdue balances to a balance transfer card with zero interest for some time if you have a good credit score.

Make Saving a Priority

Saving should be part of your monthly budgetary expenses if it’s not already. You can only hit your goal of saving $10,000 this year by adopting a saving culture. If you find saving difficult, set up automatic saving transfers from your monthly paycheck to your high-yield or long-term savings account. This way, you don’t have to constantly think about saving every month.

Celebrate Significant Saving Milestones

Rewards are an excellent way to keep yourself motivated toward saving $10,000 this year. Therefore, set specific financial milestones throughout the year and celebrate them or reward yourself as soon as you achieve them.

For example, you can set a goal of saving $2,500 within the year’s first quarter and celebrate with an outdoor experience or travel.

Breakdown the Saving Process

If you genuinely want to save $10,000 by the end of the year, you only need to save a little under $1000 a month. Of course, looking at the final figure can discourage you from saving, but breaking the savings down monthly, weekly, or every two weeks will help you attain your goal without feeling overwhelmed.

Increase Your Income Sources

Spending less and saving more isn’t the only way to save $10,000 in a year. You can also increase your income by doing various side hustles during your free time or making strategic investments that guarantee returns. This way, you can reach your goal faster without overburdening your regular income.

These are the best ways to save $10,000 this year. If you put them to practice, best believe you will have your five figures by the end of the year. Remember, if you find it challenging to save, automate to avoid the hassle.