Brainstorming how to saving 30000 in a year can certainly be a challenge, but it is possible. And believe it or not — people do need to save for this large sum of money; whether they're saving for a down payment on a home or another large expense, like a wedding or paying off those pesky student loans in full. Essentially, saving $30k is possible, given the right time frame.
By putting together the right strategy and mustering up the motivation needed, you can save money faster than you think.
In this guide, I'll show you exactly how to save $30,000 in a single year. Before I jump in, I want to point to all the other “how to save $$ in a certain time frame” posts. I've been on a kick with these types of articles lately because I think they're important. Basically, one of the money beliefs I rely on more than anything is that you can save money in any time frame…. if you're crafty enough. No gatekeeping here.
- How to save $1000 in a month
- How to save $2000 in a month
- How to save $5000 in three months
- How to save $20,000 in one year
How Much is Saving $30,000 in One Year?
Before you start creating a plan, you'll want to know exactly how much saving $30,000 in a year is.
Saving $30,000 in a year will mean you'll need to save:
- $2,500 per month
- $577 per week
- $82.2 per day
While this might seem overwhelming, by putting together a plan it's possible.
Tips on How to save 30000 in a year
1. Create a Budget
First things first, you have to create a budget to better manage your money if you want to reach your goal of saving $30k in a year.
There are many different types of budgets you can consider, but ultimately the best budget is the one you can stick to.
Some people prefer a zero-based budget but there's also the 50/30/20 budget (my favorite!), or you could consider an envelope system.
This could take a minute, but I recommend trying a few different budgeting styles and seeing what works for your finances and lifestyle. Once you have a budget that works for you, you should be able to start saving more than you were previously — with ease.
2. Pick Up a Side Hustle
Side hustles can be a great way to make some extra money which, in turn, can help you save more money.
There are plenty of side hustles out there that you can try and sometimes your side hustle can even turn into a full-time gig.
For example, you could deliver food with platforms like Doordash or you could start petting sitting with platforms like Rover.
Looking to make even more money? Consider using your skills and talents to make money by freelancing. Some freelancers make a fortune from their skills and have turned them into a full-fledged business. (Here's my definition on the difference between a side gig and a side business.)Whether you're an experienced writer, graphic designer, or software engineer – you can make great money using your skills to help businesses.
I also recommend taking a look at ways to make passive income to pad your pay. For example, starting a blog or YouTube can be an amazing option for people looking to make money online.
When picking up a side hustle, it's critical to use your additional income to pad your savings rather than spending it. Read that last sentence twice, please.
3. Open a High-Yield Savings Account
With interest rates on the rise, having a savings account that pays you interest is a no-brainer. Many high-yield savings accounts will pay interest rates exceeding 4% in our current high-rate environment, which makes it easy to grow your money with very little risk.
Because $30,000 is a significant amount of money, even a little bit of interest on it can make a big difference.
For example, once you reach $20,000, assuming you open a high-yield savings account that pays 4% interest – this would pay you around $65/month without having to do any work!
4. Cut Out Discretionary Expenses
One of the most difficult parts of saving money is reducing your monthly expenses. While cutting expenses is the most miserable activity on planet earth (just my humble opinion)…it is critical if you want to save a substantial amount of money in a short time frame. And yes, saving $30k in one year is a time frame I consider short! It's not the easiest thing in the world to do, unless you're a DINK making six figures…each.
So, here's how to cut. (I've got a full post on this here, but an overview is below.)
- When creating your budget, you'll want to go through all of your monthly expenses that you pay. This means you'll need to go through your bank statements and credit cards bills so you can pinpoint exactly where you're spending money.
- After reviewing your finances, there's a good chance you'll find some that aren't necessary.
- For example, unused gym memberships, satellite radio, or perhaps even premium television subscriptions are often easy targets that can help you save money each month.
The truth is, reducing some of these smaller expenses might not make a huge difference in your overall savings, but they can certainly add up. Even if it's just $100 a month – it can help you reach those long-term financial goals.
5. How to save 30000 in a year by reducing your fixed expenses
Here's my full post on fixed vs. variable expenses.
If you're ready to get serious about saving money, reducing your living expenses is going to be key.
For most households, living expenses such as your mortgage or rent payment, utility bills, and transportation expenses will be the largest portion of your budget and therefore can make the biggest difference in your ability to save money.
Luckily, there is an assortment of options if you're looking to lower these expenses so you can boost your savings.
The most impactful would be moving.
(But depending on your situation, like if you have kids in school, this may not be feasible.)
If possible, consider moving to an area with a lower cost of living. And if you're currently located in a large metropolitan area, you might be able to move just outside of the area to lower your costs significantly. For some, moving towns just isn't an option or a desire, but you can consider downsizing your home or apartment or renting for a year. While this might not be the easiest transition, it can help you save large amounts of money by making this sacrifice.
Transportation costs are typically another huge expense for most families.
Between a car payment, fuel, maintenance costs, and insurance – owning a vehicle can be quite expensive. (Here's how much I saved in a year when I lived car-free.)
If possible, you might consider using public transportation to start saving money. Or, if your household has two vehicles, consider getting rid of one to cut your costs in half.
Finally, your utility bills can really stack up.
Between your electric, gas, and water bills – there's a good chance you shell out over $100 a month on these expenses. Add on your internet, phone, and cable bills and you can spend over $300 a month on these “normal” expenses.
While some of these can be difficult to reduce, some of them can be easier. First, try negotiating your cable and television bills. Oftentimes just by picking up the phone and giving them a call you can easily reduce these expenses by $50 a month or so.
6. Automate
Automating your finances can be extremely beneficial for those who aren't great at managing their money themselves.
For example, on each payday, you could set up an automatic transfer from your checking account to your savings account so you don't have to do any work. (Or even better, set it up with payroll so you never even see the money.)
By automating your finances you can take the worry out of managing your money which makes life much easier.
7. Pay Off Debt
Debt can hamper your ability to save money, so paying it down as soon as possible is vital.
This is another area where a side hustle can come into play. If you don't have any money to pay down your debts, consider picking up a side gig so you can start making extra payments and reducing the amount you pay in interest each month. (Read my story on how I paid off $8,000 of debt in 90 days.)
When paying down debts, I highly recommend going after the debts with the highest interest rates first as these are the most costly. Some people prefer using the debt snowball technique, but this will cost you more in the long run.
8. Refinance Debts
Depending on how much debt you have, another option is refinancing your debt. Refinancing can allow you to lower your overall monthly payment so you can save money faster than you previously would be capable of.
However, when you refinance debt, you'll often pay more in interest over the long run – so you have to consider this.
Some of the most popular debts you can refinance include:
- A mortgage
- Student loans
- Auto loans
- Credit card debt
For example, if you've owned a home for quite some time, the amount of equity you have in it can be “taken out” of the home so you can get a quick lump sum of cash in exchange for a longer monthly payment.
Refinancing really only works with high-interest debts. So, for example, with record high mortgage rates, now would not be the time to refinance. With high-interest debts like credit cards, you can consider consolidating them into one large debt that oftentimes carries a lower interest rate.
Refinancing debts can be a great tool for some situations, but it's always wise to consider the long-term costs of doing so.
9. Find a New Job
If you don't have extra time for a side hustle, finding a new job can be another way to increase your income and get your finances on track. (There's more than one way to skin a cat, people!!!)
You'll be surprised how much more money you can make just by shopping around for a new gig. In many cases, you can land a 20% or more increase in pay just by finding a new job.
While finding a new job can be a time-consuming and stressful process, change can be massively impactful for your personal wealth-building. I'm not saying leave a job or a manager or a team you love, but if you're unhappy and underpaid…it may be time to look for a switch, even if it means disrupting a comfy status quo.
10. Ask for a Raise
If you've been working at the same company in the same position for some time, consider asking for a raise or promotion of some sort. This is a relatively easy way to boost your income without any additional work.
In many cases, it's possible to land a 10% to 20% raise just by asking – and if you haven't received an increase in pay in quite some time it could be even more.
Just remember that whenever you ask for a raise or promotion, it's best to have some sort of concrete evidence of your work to justify the ask.
Here's a great guide on asking for a raise for more help.
11. Have No Spend Days
I am a huge fan of no-spend days (or even a no-spend month) because they can be an awesome way to get your spending habits in check and offer some additional motivation.
Try to put aside a few days each month in which you spend no money at all.
This can take some planning so you can avoid going to the grocery or the gas station on these days, but it can be a somewhat fun and motivational day to help you stay on track.
One thing I've found that can be extremely helpful is finding free entertainment options on these days to add some fun to the day. Going to the park, finding a free concert in town, or going to your local library can all be great options.
12. Build an Emergency Fund
If you don't have an emergency fund yet, this is your chance. Not having some money set aside for any unexpected expenses is a recipe for disaster and can really derail any progress you make on saving up that $30k chunk you'd actually like to use someday.
Most personal finance experts recommend setting aside at least 3 to 6 months of your normal monthly expenses to establish your emergency fund. While this can be a lofty amount, start by setting aside just $1,000.
It's important to remember that your emergency fund should only be used for true emergencies – not expenses that are normal.
13. Adjust Paycheck Withholdings
Have you ever taken a look at what comes out of your paycheck each week?
There's a decent chance you might be able to adjust your withholdings so you can more easily save money.
For example, between retirement contributions and tax withholdings, you can reduce these so increase your pay each week.
Now, making this decision can have a large impact on your overall financial health so it should be done with caution.
14. Track Your Progress
Whenever you set a large goal like saving $30,000 – tracking your progress as you go is essential.
Try to plan weekly or monthly check-ins to see what kind of progress you're making and areas where you can improve.
If there's an area where you've been slacking, keep note of it and see how you progress at your next check-in.
After a few weeks or months, you should have a better idea of how you're adjusting to your new lifestyle and what's working for your finances so you can tweak your habits.
How to Save $30,000 in 6 Months
Need to save $30k in 6 months? To do so, you'll need to save:
- $5,000 a month
- $1,153.85 per week
- $164.38 per day
Saving this much money in a shorter 6-month time frame will certainly be a challenge, but if you can manage to boost your income, who is anyone to say what you can and can't do?
How to save 30000 in a year: FAQs
How long does it take to save $30k?
The amount of time it takes to save $30k will depend on your monthly income and expenses. In most cases, it can take over a year to save $30,000 but with a strict plan and strong motivation, it can be completed in under a year. You'll need to drastically reduce your expenses and work on increasing your income to save extra money each month to reach your goal faster.
Is it hard to save $30k?
Yes, for most people, saving $30k is no small task and it can be difficult. But by having a plan and being consistent with your finances you can reach it. You'll need to adjust your spending habits and identify areas where you can cut back to increase your savings and reach your goal.
The TL:DR
Saving $30,000 in a single year isn't the easiest goal, but it is possible. If you're saving for a down payment on a home or a new car, these tips can be a great way to get started.
By creating a plan, sticking to a budget, and adjusting your spending habits to cut out non essential expenses you can get there.
Just remember to track your progress along the way and don't get discouraged by any potential setbacks along the way.
