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Imagine being able to save $5000 in 2020! What would that mean to you?
What would you spend it on? Would it become an emergency fund, go towards a vacation or down payment on a new home?
Regardless of what you would do with it, I’m sure you would like to have it. Who wouldn’t?
I have no doubt each and every one of us can think of a thousand different ways to spend that $5000. The hard part here, is figuring out how to save it in the first place.
Luckily for you, this money saving challenge has you covered! If you follow this schedule in only 52 weeks (1 year) time you will have saved $5000.
The 52 Week $5000 Money Saving Challenge
Here’s how this challenge works, every week you’re going to save money. Pick a day of the week, any day. It doesn’t matter which one, but this is going to be your savings day.
Every single week on your savings day you’re going to put money into your savings account. No ifs, ands, buts or other excuses. Make the commitment to yourself, your future self who is relying on you to save that $5000.
Save $5000 in one year
So there’s a savings plan to help you save $5000 in 1 year.
I know, I know making a savings plan is sometimes a lot easier said than done so here are some ways to help make saving this money easier.
First things first, if you want to save $5000 in a year, especially if money is tight to begin with you have to determine where the money is coming from and where it is going.
From there you can set priorities and identify those areas where you’re spending more than you should be.
Saving $5000 in a single year is completely doable for most people, but it’s something we will have to be deliberate about. Saving this amount requires setting aside an average of $13.60 each and every day.
This is a lot. While making your morning coffee at home every day will help, it’s going to take a bit of effort. While it will be worth it, you have to really want it.
The key is wanting the saved money more than the things you were going to spend it on.
Take Advantage of your bi-weekly pay schedule
Most people get baid on a bi-weekly basis but most bills need to be paid monthly. Generally we find ways to pay our bills with two pay checks each month.
But, if you’re paid bi-weekly, theres a few months each year where you have three pay days. Those months are awesome for savings!
This goes back to creating and sticking to a budget. If you know when those months with the extra pay day are, you can plan for them and ahve that money go right into your saving account or toward bill payments before you even have a chance to spend it.
Buy in Bulk
This tip is especially good if you have a family. There is a lot of money to be saved by purchasing your groceries, toilet paper and beauty essentials in bulk.
Although thesee places often have an annual membership, the money you’ll save buying in bulk. There is also the benefit of not having to go shopping for essentials as often.
There is also the added benefit of reducing waste.
How much do you pay for cable every month? Chances are it’s quite a bit.
When it’s time to tighten the purse strings and focus on saving money it’s a great opportunity to ask yourself which bills can be cut. Are their any service that you’re duplicating and do you actually use the services you’re paying for?
Often you can watch shows for free online 24 hours after they’ve released, and streaming services like Netflix or Amazon Prime Video for a fraction of the cost.
It never hurts to look into those services or determine if cable is actually necessary for you. After all, can you think of any better ways to spend that extra $100+ every month?
Lower your Phone and Internet Bills
It’s no secret that I, and many others easily live without cable, internet and cell phones seem much harder to live without.
Although we probably can’t get rid of those things, we can take a look at your bills and make sure we’re actually utilizing all the extra services we’re paying for.
Remember the international calling plan you put on your phone before your vacation 2 years ago? Have you remembered to take it off? Now is a great time to do so.
Do you have unlimited data, but never use more than 2GB? Unlimited is nice, obviously, but if you rarely use it, what’s the point?
It’s also never a bad idea to ask about more affordable plans or discounts. When I find a cheaper phone or internet plan, I typically call the companies I deal with and ask if they’ll match it.
9 times out of 10 they do. They keep a customer, I keep more of my money and every body is happy.
Cut Your Insurance Premiums
Every year when my current insurance company send me a quotes that’s an average 10 – 20 % higher than it was the previous year, I start looking at other options.
Call around, get other quotes. If nothing is cheaper than your current provider you’ve lost a bit of your time. Generally though I find coverage equal to what I currently had for roughly the same price.
Think about how much you pay for car insurance, home owners insurance or a tenants package. Saving even a few dollars off each of these can make a big difference in your savings account.
More Awesome and Easy Ways to Save Money
Use Rakuten to get money back when you purchase the things you were going to buy anyway. Sign up through this link and get $10 off your first order!
We’re coming to a new year, there really is no better time to start on your quest to save $5000 in a single year. Have you set any financial resolutions for the comming new year? What are your best tips for saving extra money?