How to Save Your First $10,000 (And Keep It That Way)
Everyone’s always talking about "saving" money, but how do you actually do it? How do you go from staring at your bank account in disbelief to seeing that glorious 10K balance? Let’s dive into a few simple steps that can make it happen. And no, you don’t need to live on ramen for the next five years. Here’s how you can build your first $10,000, without losing your mind (or your social life).
1. Start with a Goal (But Keep It Real)
We’re not talking “I’ll save $10,000 by next month” if you’re earning $2,000 a month. Be realistic with your timeline. Let’s say you want to save $10,000 in 12 months. That means you need to save about $833 per month, or around $200 per week. Break it down into manageable chunks to make it less overwhelming.
2. Set Up Automatic Transfers
The key to saving without thinking about it? Automation. Set up an automatic transfer from your checking account to your savings account every pay period. If you make it automatic, it’s out of sight, out of mind, and you'll be less tempted to spend it. You’ll be amazed at how quickly it adds up when you don’t touch it.
3. Cut Back on Unnecessary Subscriptions
This one’s easy money. Do you really need that third streaming service? That gym membership you haven’t used in months? Start cutting the fat on subscriptions you don’t use or need. You’d be surprised at how much that can free up for savings.
4. Track Your Spending (And Be Honest About It)
Apps like Mint or YNAB (You Need a Budget) are amazing tools for tracking your spending. The first step to saving is knowing where your money is going. Once you see those little $5 coffee shop trips adding up, you might think twice next time. It's all about cutting back on the small stuff that doesn’t bring real value to your life.
5. The 50/30/20 Rule (For Budgeting)
This is a tried-and-true formula that works like a charm if you're not sure where to start with budgeting. The 50/30/20 rule breaks down your spending into three categories:
50% needs: Rent, utilities, groceries, etc.
30% wants: Dining out, entertainment, shopping, etc.
20% savings: This is the important one. Put this aside automatically.
If you follow this rule, you’ll see your savings grow quickly—without totally restricting your lifestyle.
6. Find Extra Cash (Even If It’s Just a Little)
Look for ways to make some extra money. Could you take on a side hustle? Or maybe sell some old things collecting dust? Even if you make just an extra $100 or $200 a month, that adds up over time. Remember, it’s about consistency—not huge windfalls.
7. Use Cash Instead of Card (Sometimes)
This one’s a bit old-school, but it works. Using cash for discretionary spending makes it feel more real. When you swipe a card, it doesn’t feel like you're parting with actual money. Try using cash for things like dining out, entertainment, or shopping. The physical exchange makes it easier to keep track of what you’re spending.
8. Make Your Savings a Priority
Life has a funny way of throwing unexpected expenses your way, but don’t let that derail your savings plan. Treat your savings like a bill that must be paid. You wouldn’t skip your rent or utility bills—so don’t skip paying yourself.
High Yield Savings Accounts are a great way to make money from your money to let it grow passively with almost no risk over time as well, banks like Sofi, American Express National Bank, Capital One Performance 360 Savings, Wealthfront and more all earn 3%+ at the time of this writing. That’s $300 EXTRA per year for every $10,000 saved!
Final Thoughts
Saving $10,000 is no small feat, but it’s definitely doable with the right strategy. The key is consistency. The more you automate, track, and stay disciplined, the sooner you’ll hit that milestone. And once you hit $10K? It’s time to set your sights on $20K, then $50K, and so on. With the right mindset, your savings will snowball, and you’ll be in a much stronger financial position for the future.
