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How to Save $10,000 in a Year

It may not be easy, but saving $10,000 can be achievable with discipline and a plan.

Even with sufficient income, saving $10,000 within a year still requires significant effort. To reach this goal within 12 months, you’ll have to save around $830 per month. To save $10,000 in just six months, you’ll have to save over $1,600 each month.

We have seven suggestions to help make your $10,000 savings goal a reality.

1. Automation for simple savings

If you have the income to save $10,000 but struggle to make that goal a reality, simplify the process by automating your savings contributions.

Automatic direct deposits and scheduled ACH transfers eliminate the need to manually transfer cash, helping you to reach savings goals without relying on willpower.

If you have direct deposit set up with your employer, you can choose how to allocate your paycheck. For example, if you make $2,500 biweekly, you can allocate 16% of your paycheck ($400) to your savings account and the remaining 84% to your checking account. Saving $400 biweekly will net $10,400 in one year.

2. Consider investing

If saving $10,000 from your income alone is tough, consider putting some of your existing cash to work through investing. Depending on where you invest, you could see substantial returns — but there’s always some risk involved with investing.

There are multiple investing options to check out:

  • Dividend stocks and exchange-traded funds (ETFs)
  • Cryptocurrency
  • Index funds
  • Fixed-income investments
  • Real estate investment trusts

There are also robo-investing platforms to compare, which invest for you automatically.

3. Follow a budget

Saving $10,000 in under a year is a lofty goal, and your odds of success are higher if you make a budget.

A classic budget is the 50/30/20 rule, which stipulates that you should spend 50% of your income, 30% on wants and 20% on savings.

If you follow the 50/30/20 rule strictly, you could reach a $10,000 goal within 12 months if your annual income is at least $50,000. Making $50,000 equates to $4,166 per month, and saving 20% is around $833 per month or $9,996 in a year.

For help making a budget, check out budget apps like You Need a Budget (YNAB), Goodbudget and EveryDollar. Each app offers its own perks, budgeting style and pricing, so compare budget apps and methods to find one that fits your lifestyle.

4. Find a high-yield savings account

You’ll likely need a place to store your savings, right? As you work toward that $10,000 goal — and even after reaching it — consider putting your funds in a high-yield savings account (HYSA).

The average savings account rate is 0.46%, while high-yield savings accounts sometimes offer APYs into the 4% to 5% range.(1)

With a high savings rate, your funds can grow passively and combat inflation.

Savings APYBalanceInterest earnings after 1 monthInterest earnings after 6 monthsInterest earnings after 1 year
5.00%$10,000$40.74$246.95$500
0.46%$10,000$3.83$22.97$46

5. Cut down on frivolous spending

It’s easier said than done, but cutting down on extra expenses is likely a must if you’re trying to save $10,000 in a year.

Discipline will be required to cut your unnecessary spending. Here are some tips to help:

  • Find a free bank account to avoid monthly maintenance fees
  • Utilize cashback cards
  • Compare insurance providers every time your policy is set to expire
  • Downgrade your subscription services, such as opting for a plan with ads or canceling altogether
  • Unsubscribe from email campaigns from retailers to avoid temptation
  • Implement a 24-waiting period for online shopping to be sure you need the item
  • Craft strict meal plans to prevent impulse buying at grocery stores

6. Pay off credit cards

I know what you’re thinking — wouldn’t it be better to save money instead of putting it toward debt? However, once you pay off your debts, you’ll have more disposable income for your savings goals.

High credit card balances mean higher monthly minimum payments. Every month that a credit card balance rolls over into the next billing cycle, you accumulate more debt thanks to high interest rates.

Work to pay down your credit card balances to avoid interest charges and free up monthly income for your savings account. As a bonus, paying down credit cards can also improve your credit score.

7. Try the 100 Envelope Savings Challenge

If you want to save $10,000 in under one year, the 100 Envelope Savings challenge can help you save a little over $5,000 in 100 days. If you do the challenge twice, that will yield $10,100.

The 100 Envelope Savings Challenge is pretty simple. To start, gather 100 envelopes and label them one through 100. For 100 days, fill one envelope per day with the amount matching the envelope’s number. For example, add $1 in ‘one,’ $100 in ‘100’ and so on.

By the end of 100 days, you’ll have saved $5,050. Also, you can stuff the envelopes in any order, such as filling the $100 envelope on payday and filling the $1 envelope when you’re tight on cash.

Compare top savings accounts

Narrow down top savings accounts by monthly fees, APYs and features. For a closer comparison, tick the Compare box on multiple options to see the benefits side by side.

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1 - 6 of 27
Name Product USFSA Account type Annual Percentage Yield (APY) FDIC or NCUA insured amount Minimum balance to earn interest Minimum deposit to open Offer Estimated total balance
Uphold
Finder Score: 4.4 / 5: ★★★★★
Uphold
Savings app
Up to

4.90%

Up to $2.5 million
$1
$0
$1,049
SoFi Checking and Savings
Finder Score: 4.6 / 5: ★★★★★
Bonus
SoFi Checking and Savings
Traditional savings,Checking
Up to

4.20%

Up to $250,000
$0
$0
Get up to $300 cash bonus with qualifying direct deposit. Terms apply. This offer is available until December 31, 2024.
$1,042
Axos ONE
Finder Score: 4.2 / 5: ★★★★★
Axos ONE
Savings app
Up to

4.86%

Up to $250 million
$0
$0
$1,048.60
American Express® High Yield Savings Account
Finder Score: 4.9 / 5: ★★★★★
American Express® High Yield Savings Account
Traditional savings

4.00%

Up to $250,000
$0
$0
$1,040
Western Alliance HYSA through Raisin
Finder Score: 4.7 / 5: ★★★★★
Western Alliance HYSA through Raisin
Traditional savings

4.65%

Up to $250,000
$0
$1
$1,046.50
Barclays Tiered Savings
Finder Score: 4.2 / 5: ★★★★★
Barclays Tiered Savings
Traditional savings
Up to

4.80%

Up to $250,000
$0
$0
$1,048
loading

Bottom line

We won’t lie — saving $10,000 within one year is a lofty goal, but if you’re determined, it’s possible with careful planning and some elbow grease. Stretching the $10,000 goal to 24 months can be easier on your wallet, requiring you to save $417 over 12 months instead of $834.

Placing your savings in a HYSA can passively grow your funds and provide peace of mind with federal deposit insurance. Compare and read our savings account guides for more top accounts to store and grow your savings.

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To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.
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Written by

Editor, Banking

Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio

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Bethany has written 441 Finder guides across topics including:
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