Save £10,000 In A Year With These 6 Simple Tips
One thing this Global pandemic has shown me and a lot of other people over the last year is that we really should all be better at saving money.
Furthermore we should all have an emergency savings fund of at least 3 months salary if not 6 months.
So how do you go about saving money and creating an emergency fund, Well most people start by setting a target of money they would like to save in one year.
So how great would it be to save £10,000 in one year? Not achievable you would probably say and in some cases you would be right but did you know that if you earn anything close to the average UK wage of £29,000 you should be able to save £10,000 in one year from your salary with a few clever tweaks to your spending and saving habits.
So whether you are looking to save £1000 in a year or looking at how to save £10,000 in a year just know that with the right mindset it is more than possible and in most cases you will save more than you thought you could.
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Why Save £10,000 In A Year?
Well for starters it doesn’t have to be £10,000 it could be £1000. But I am going to use £10,000 as an example as I’m confident that if you put your mind to it you can absolutely do this.
So why do people save hard for a year? Well, we all have different wants and needs. I have saved hard twice in my life. Once when my wife and I were saving to buy our first proper home and the second time when I was saving to pay off credit card debt and to invest what I had left.
People save for all sorts of reasons. It could be to buy a house or car or to put your child through university or so you have enough money to travel for 6 months. Some people just want a certain sum to either keep in the bank or to invest to make their money work for them.
The main thing you need to do is to work out why you want to save and then to set a target. Like I said £10,000 is our target and I am going to show you 6 solid tips to help you make more money and cut back on your current spending in order to get there.
How Much Is £10,000?
Sounds like a weird question doesn’t it? Well, we know how much it is but how much is it when saving towards it over the course of a year?
Well in monthly terms it is £833.33 per month. Ouch, that sounds quite a lot to put away each month, doesn’t it? Well, what about per week then.
Well, £10,000 weekly over the course of a year is £192.30 That doesn’t sound as bad. How does £27.47 per day sound? Well, that sounds even easier.
So we need to work together to earn more money and cut back on spending in order to reach that £27.47 per day.
What follows is 6 simple tips for either making more money or cutting back on spending the money you do have in order to try and reach that goal.
Sounds easy doesn’t it and it certainly can be. What it is as well is one of the best ways to save money. Cutting back on any kind of bills is something that can be done in 1 day or over a weekend. It will be the best thing you could possibly do to free up some cash.
You can either look to do this yourself and use some cashback sites such as Quidco or you can use some of the latest websites that are there to help you automate switching your energy bills with no hassle.
With cashback sites such as Quidco if you change energy suppliers for both electricity and gas you could potentially make between £40-80 cashback per switch. That’s £100 towards your goal already plus the savings you could make over the year which typically could be around £100. You could be looking at £200-300 already saved towards that £10,000
If you choose to let your bill cost-cutting be automated then there is a great site called Look After My Bills. This is a clever little site which was seen on the popular Television programme Dragons Den.
You simply sign up, Fill in a few simple questions and then the Websites algorithms go to work to try and find you a great deal on your energy bills.
When a deal is found the website does all the hard work and switches for you. In one year or whenever your deal ends the website will simply repeat the process and find you a new deal cheaper than your current one.
It is a great way of taking the work out of finding new energy deals every year.
Other bills that can be cut are bills such as Cable or satellite television. With so many streaming services available for £10-20 per month paying over £80 for Sky or Virgin seems madness.
Cutting these right down could save you up to £50 per month. All of a sudden that’s another £600 per year towards your target of £10,000
Cutting your household bills can save you anywhere between £500-£1000 per year. This is 10% of what you are trying to save and this could be done over the course of a weekend.
Automating your savings is one of the best ways to save. What if I told you that there are handy apps out there that save your money for you without you having to do anything.
Well, this is exactly that case. I use a handy little app called Plum, Plum is a mobile app available on Apple and Android and it an automated savings app.
You can sign up for a free or paid account and then link your bank account which is safe, easy and secure. Once this is done you can set a few rules in the app and away you go.
I have mine set to round up any money I spend to the nearest pound and save the difference. For example, if I spend £4.29 at my local shop Plum will simply round up to £5 and take the extra 0.71pence and save it for me in my Plum account.
You have no idea how quickly this adds up when you think about how much you use your debit card. I am what you would call a light spender yet I plum can quite easily tuck away £30-50 per month without me even really noticing.
If you get short of cash you can always withdraw back to your bank account in the blink of an eye. But hopefully, you will not need to.
You can also set Plum to take money to put aside on Payday and also sum small sums during the month but you are the one who decides whether this is something you want to do.
With Plum, I believe it is more than possible to save £500-750 per year dependant on how strict you are with yourself and how much control you give to your savings app.
There are other apps out there like this such as Spendee which is another great app but Plum is the one I use on a daily basis and I love its simplicity. I also use Plum to invest my money which is worth looking into as well and I will mention this later.
Earn More Money
Ok so that sounds a bit pretentious, doesn’t it? Listen we would all love to earn more money but it isn’t always that simple. Getting a pay rise can be a bit difficult so there are a couple of choices here.
You can always do overtime at your current job but to be honest I feel you can make more money quicker by starting a side hustle. Why work for someone else when you can work for yourself.
If you are looking to earn more money from side hustles then there are so many to choose from that I simply couldn’t list them all here.
What I will do is list a couple of my favourite Side hustles that can earn you a bit of extra money to put toward your £10,000.
Do not be put off by the word betting as effectively you are not risking your money. It is a technique used to make a guaranteed profit from Bookmakers Sign up offers and the offers they release weekly to all their customers.
Finding all of these offers and learning how to do matched betting can be tricky on your own which is why most people use a service such as Profit Accumulator.
The guys and gals at Profit Accumulator have helped me make around £5000 in an 18 month period. This is doing it for around 6 hours per week. Not only that they have a great community forum over there with everybody helping each other make money. The best thing is any winnings from matched betting are totally tax-free and it is 100% legal.
Although Profit Accumulator is a subscription service whereby you pay a monthly fee you will make way more than this. In my first month, I made around £300 and I was being cautious.
The more effort you put in the more Profit you will get out. Some people earn £1000-1800 per month due to the amount of time they put in. Matched betting even has some people doing it full time as their main source of income.
Sign up today and start earning money towards your £10,000 Goal. If you put your mind to it I believe you could make probably half that total in your first year. Below is the Ceo of Profit Accumulator explaining how it all works.
Profit Accumulator has helped me make a nice amount of spare cash and it can absolutely do the same for you. Sign up below and start earning today.
Affiliate Marketing is a great side hustle. It can be started with no outlay and it can be done from anywhere either on your computer or your phone.
In the simplest terms, Affiliate marketing is whereby you promote a companies products and when someone clicks on your personal affiliate link and makes a purchase then that company pay you for sending a sale their way.
For example, I am an affiliate for Profit Accumulator and as you can see above if you click on the banner and sign up (Absolutely Worth it) 🙂 then I will get a small commission for sending a sale their way.
Of course, it always helps to be an affiliate for companies and products you believe in as it is easy to sell something you have tried and loved. I used and still use Profit Accumulator today so why wouldn’t I promote them and help my readers.
You may think you need a blog to become an Affiliate but you don’t. You can be an affiliate on social media such as Twitter, Instagram etc. If you search through Financial twitter you will see loads of people selling courses and financial planners etc and they are all affiliates for other companies.
Essentially you are selling products you believe in or have used yourself without the hassle of packaging and posting etc. You are simply offering your opinion on a product and a link. If the consumer clicks the link and makes a purchase then you get paid. Simple.
All you need to do to get started is decide on a platform whether that be a blog or a social media site or a niche one-page site.
Then choose a niche such as motor industry, finance, health and fitness etc then pick an affiliate program to join. Most affiliate programs will have plenty of choices when it comes to products for you to promote in all kinds of niches.
Once you are signed up to a few affiliates then you need to promote them by either writing content around the items or simply promoting via social media which is a little easier and less time-consuming. Make sure your account and everything you tweet or put on your Instagram is to do with the niche you are promoting.
You can go a lot more in-depth with affiliate marketing but this is just a taster. If you spend some time learning about it you will see that it is a great source of passive income and could help you reach that £10,000 goal in next to no time.
Cut Back On Eating Out
When my wife and I were saving for our first home we needed to save £20,000 in one year. We knew it was achievable but we had to work really hard.
We love going out to eat. We probably go out 2-3 times per month and spend around £100 per time. We stopped for a whole year and although it was hard we saved so much money.
Even if we spent less eating out can cost us on average around £150 per month or more if we have kids in tow. Cutting this out completely is a great start if you are looking at how to save £10,000 in a year.
Make your own lunches for work instead of going to the local shop and spending £5 per day. Stop buying those takeaway coffees.
Have a family food night around the table. Although not quite the same the amount of money you will save will be worth it. Put that money aside towards your goal.
Create A Budget
Budgets are not sexy. We know that but they are vitally important when it comes to working out where your money is going each month.
It may surprise you but 18% of people have a direct debit going out of their bank account every month and they have forgotten all about it.
If you scan through your bank statements one afternoon I bet that you can find a new way to save some more money. Even if it is £10 per month. It all adds up.
The only way you are going to find this though is to go through your statements and create a budget by working out the incomings and outgoings of your finances.
I bet when it is all done you can work out how to save at least £50 per month. Put this aside towards your goal.
Around 5 years ago my wife and I hosted Foreign Students. We had a spare room and thought the money would come in handy. We were right, We made around £400 per month on a weekday basis and never really had too many issues with it.
What we did do is we swapped from where we normally shop for food which was Tesco or Morrisons and we started shopping at Aldi.
Aldi if you have been living under a rock is a budget supermarket where people used to laugh because of the perceived low quality of food when in actual fact it as good as the leading supermarkets but you will only pay around half the price on most products.
With Tesco, we would get around 10 bags of shopping yet spend £175. When we went to Aldi it never came to more than £100. If you are shopping on a weekly or monthly basis then you can save hundreds of pounds over the course of a year.
I worked out the other day that when we hosted students we probably saved around £900 in the 8 months that we were hosting for each year.
So my top tip for saving money on food is to let go of whatever principles you have about only shopping in one store and go and try Lidl or Aldi. You will save so much money over the course of a year.
Save £10,000 In A Year With These 6 Simple Tips
When looking at how to save £10,000 in a year you can see that if you sit down, create a budget and then implement some of these money-making and saving tips that it should be possible for most households to save £10,000 in a year if they put their minds to it.
The more you implement these kinds of ideas the more money you can save but be it £10,000 or £3,000 it always feels great when you achieve something like this for you and the extra money will be put to good use I’m sure.
My personal advice especially if you are looking to have a nice little nest egg for later life is to pay off any consumer debt and then invest whatever is left in a stocks and shares ISA. Make sure you do your research of course.
If investing your £10,000 is what you plan to do then to give you motivation think of it like this. If you Invest that £10,000 for 10 years and added a further £50 per month then in 10 years at 5% you would have £24,038.
Do the same but with slightly higher risk for 8% and you would have £30,653. The power of investing and compound interest should not be underestimated.
Good luck with your saving and I hope you reach the target you have set.