Let’s face it – saving money can be hard. Especially saving up a large amount, like $22,000, for example. Whether you have a big purchase in mind – like buying a home – or want to boost up your savings for retirement, large goals can seem more like a far-off dream without a proper plan in place.
However, as it turns out, reaching your savings goal can be a lot easier than you may think. Read on to find out how you can make 2022 the year you reach your savings target once and for all!
Breaking Down Your Savings Goal
For the sake of this post, let’s say you have a goal to build up a savings of $22,000 this year. While that number can seem daunting at first (where will you find all that cash?!), it helps to break it down into smaller, more manageable goals.
Start by breaking down the goal into months. With twelve months in a year, you’ll need to save about $1800 per month to reach your goal (not so scary, right?). So how will you find an extra $1800 per month? It doesn’t have to be from one strategy. In fact, a few smaller strategies put together can help you reach your goals faster, with less effort.
1. Cut Out Unnecessary Spending
We’ve said it before – when it comes to budgeting and saving money, buckling down on extra spending can go a long way. Cut out every extra expense you can, from cable and streaming services, to dining out and your daily latte. Take every dollar you would have allocated to these expenses and put it right into your savings.
For example, let’s say you spend $100 per month on streaming services, $5 a day at your local coffee shop, and about $200 a month on dining out. By cutting these expensinse habits, you just saved yourself $440 a month, meaning you now only need to save an additional $1360 per month to reach your goal, which is a bit more manageable.
2. Pick Up a Part-Time Gig
One of the simplest ways to up your savings is to bring in more monthly income, which can be achieved by picking up a part-time job on nights and weekends. With apps designed for this kind of earning – like DoorDash and Instacart – you can work flexible hours around your current full-time job, while pocketing all of your revenue earned into savings.
The typical delivery driver or Instacart shopper averages out their earnings to about $18 per hour, so if you dedicate 15 hours per week to a part-time gig like this, you can bring in $800 – $1,000 per month. This leaves you with only $300 – $500 left to save each month to reach your goal, depending on how much you earn – easy!
3. Become a Host
If you’re a homeowner, you can consider renting out a room in your home to earn some extra cash through AirBnB. The average host makes anywhere from $500 – $900 per month (depending on location and home arrangements), which makes hosting an appealing offer to homeowners looking to earn some extra income. And, if you’ve already followed steps one and two, your AirBnB host income will bring you over the threshold of your monthly savings goal.
If you’re not a homeowner, consider hosting a monthly virtual yard sale on Facebook marketplace to sell items you no longer use, including furniture, clothing, plants, dishware, etc. You’d be surprised what sells, and can easily earn $300 – $500 per month from items found in your own home!
4. Keep Your Savings in a High-Yield Savings Account
If you’re keeping your savings in a standard checking or savings account, you’re losing out on interest payments. By placing your savings in a high-yield savings account, you can earn cash through interest just by having it sit in there!
While it may not seem like much, every little bit helps, and the average high-yield savings account accrues about $50 per every $10,000 in savings, which is extra cash right in your pocket.
Remember, building up your savings is a marathon, not a sprint, and it takes patience and persistence. You may fall off track here and there, but as long as you keep up and stay committed, you’ll reach your goal in no time.
The opinions expressed in this post are for informational purposes only. To determine the best financing for your personal circumstances and goals, we advise you to consult with a licensed advisor.
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