During the pandemic, the personal saving rate in the United States increased to 32.2% in April 2020, up from 12.7% just one month before. But, now that businesses are open and people are traveling and entertaining, you may find it more difficult to conserve money.
It is, however, absolutely possible to retain your pandemic-era savings rate — and even increase it — in order to build an even greater nest egg. Let’s talk about it in this article.
These are five strategies for saving up to $10,000 in six months, depending on your salary.
1. Create goals for yourself and visualize yourself achieving them
It’s one thing to say you want to “save money.” It’s a whole different cognitive process to specify a precise figure and time range, such as $10,000 in six months. If you break it down, that means you need to save $1,666.67 per month or $417 per week. If your income does not permit this level of savings, set a goal of saving $1,000, or even $100, this month.
Then take the next step and visualize yourself accomplishing that goal. If it helps, write yourself a $10,000 cheque and post it on the bulletin board above your desk six months from now. Consider how that degree of financial freedom and security will make you feel. What would you spend your money on now that you have a nice nest egg?
2. Consider a Spending Ban
Although you may imagine yourself wealthy — or even with an additional $10,000 in the bank — it is critical to carefully monitor your spending in order to free up that $417 every week. Take a page from your pandemic playbook and cut back on eating out and entertainment spending.
Many people are currently engaged in “revenge spending” or adopting a you-only-live-once mentality, which can lead to excess, particularly in travel and entertainment. If you want to save money, put a stop to these behaviors for 30 days. You can make it another month if saving money is your top concern after doing without these indulgences for more than a year.
3. Make a Budget
Even if you eliminate impulsive or vengeance spending, you won’t know how much money you can save unless you create a budget. Mint and YNAB (You Need a Budget) apps make tracking costs straightforward, even if you’ve never drafted or managed a budget before.
4. Make Savings Deposits Automatic
After you’ve cut out superfluous spending and created a budget based on how much money you need each month for housing, utilities, gas, food, and other needs, set aside the rest of your income for savings.
If you’re content with $.01% interest rates, look into various online banks or credit unions that offer.
60% or higher interest rate. You won’t get rich or reach your $10,000 target with these interest rates, but you will earn more over time, which is a wise financial move.
5. Think about ways to make more money
What if you’ve saved every penny you could from your present paycheck but still haven’t met your target of $417 each week? It’s time to start manifesting extra money.
Your thinking is a critical factor in making more money. Every day, blogger Dena Joan of Live, Love, Simple begins with affirmations like, “Money is flying at me from all directions.” This “abundant mindset,” as Joan refers to it, broadens your horizons and can help you become a money magnet. “It became my reality when my thoughts were full of riches, success, and confidence,” she wrote.
When you discuss ideas, have an open mind to fresh chances to save that $10,000. Then, put any extra money into your savings account until you reach your goal.