Are you trying to build up your savings account fast? Boy, aren’t we all. That’s why here you’ll find the ultimate guide on how to save $1,000 fast to get you started. Let’s get to it!
Most of us are led to believe that saving money is a slow, laborious process that you have to do over a significant portion of your life for it to have any meaning. This is not entirely true, however. In fact, it’s actually possible to save up 1000 dollars in a month or even less.
All it takes is some discipline, a bit of sacrifice, and some strong decision-making. Through good choices, we can quickly accrue a grand in savings. Read on to find exactly how to save $1,000 fast.
Define a Timeframe
We talk about how to save money fast, but what exactly does that mean? Are we talking about how to save 1000 in 30 days? A week? A couple of days? Ultimately, the timeframe has to be decided by you. It’s unlikely that you’ll be able to save a grand in just a few days, but within a month is certainly feasible.
Define your own timeframe and give yourself an achievable deadline to save 1000 quickly.
Display Your Goal
To help you stay on target and meet your savings goals, it’s a great idea to have a display that shows how much you’ve saved vs. how much you want to save in total. Seeing it each day will remind you of the target and help inspire you to stay on track. It’s a small detail, but it can make a huge difference in whether or not you succeed in making that $1,000 of fast savings that you want.
Make a Budget
The next step to save 1000 fast is to get a clear idea of where your money is going, meaning how much you spend and on what each week/month. You can’t rely on your vague recollections here; there have to be numbers and receipts for you to make a reliable budget that you’ll be able to stick to. Then, cut back on unnecessary expenses.
In which areas those cuts can be made will vary depending on your lifestyle, but below you’ll find some suggested cuts based on what we know a lot of people generally spend money on a monthly basis.
The following things are all prime candidates for budget cuts. They may seem like small things when you first think about them, but as you may have already learned from your budget, when you put them together they quickly add up, and they can be a big drawback when you’re looking for ways on how to save up money fast.
Here are some great places to start.
Streaming Account Subscriptions
You might purchase these thinking of them individually as items under $10 a month. When you put together a typical set, however, such as Netflix, Amazon Prime, YouTube Premium, and HBO Max, that adds up to about $43 minimum.
It could be even more if you’ve added any extras to your account. How to save fast with all those subscriptions going? Make a decision to keep one main streaming service for entertainment; ditch the rest.
Coffee and Dining Out
Cutting back on take-out coffee and fast food, as well as dining out for lunch and dinner will contribute largely to that savings pot. There’s just no way to justify the amount spent on food and drinks compared to what you’d spend if you bought your groceries and cooked at home.
Let’s start with coffee. Brewing your own coffee at home will cost you between 16 and 18 cents per cup. An average cup of coffee bought at a branded outlet will cost you around $2.70. No matter how “cheap” you think the store coffee is, there’s no competing with $0.16 a cup.
How can I save $1000 fast without sacrificing my favorite flavor? No need to fret, since most renowned brands sell their coffee to brew at home, so it will still be delicious, and mega cheap!
Now translate that coffee-to-go expenses into daily, weekly and monthly savings. Saving $2.70 a day per 1 cup of coffee means $18.90 per week, or $81 a month. And we’re just talking coffee here, no blueberry muffins or wraps in the mix. You buy those as well? Perfect, then you have more money to save by cutting them off.
Now let’s move to dining out or ordering food vs. cooking at home. Once again, no matter how cheap you think the food you buy outside is, it will never compare to how cost-effective it is to eat at home.
The average cost of a meal cooked at home is about $4.31 per serving, while a restaurant meal can cost you around $20 on average. Benefits don’t stop there; you’ll be eating much healthier, and developing new cooking skills to impress your audience. I mean, who doesn’t like to brag about their cooking skills?
Hold Back From Big Purchases
Let’s introduce this subject with an example.
For weeks you’ve been thinking about buying a new TV for $400. It’s bigger, smarter, and has a better resolution than the one you currently have. You’ve been saving diligently and you know it’s something you want. You could go on Amazon or another online store and order it directly; your brand new TV will be yours very, very soon…
Or, alternatively, you could give it 24 hours and see what happens. Chances are the urgency will fade a little, and you’ll realize you didn’t actually need or even want the TV that much. What does that mean? 400 bucks going straight to your savings deposit.
The TV could actually be a bike, a smartwatch, a new phone, a laptop…it makes little difference. But it’s always useful to take some time to really reflect on the purchase before you make it.
Don’t Get Sucked into Sales
You’ve just heard from your friends that a store, be it online or brick and mortar, is having a sale with savings of up to 75 percent. Unless the store has things that you actually need, avoid it at all costs.
Sales are just marketing events to get people into the store and spending their money. You won’t make any savings if you go to sale stores and spend on things just because they’re cheap. That’s not a valid reason for buying stuff and it’s not how to save up 1000 dollars fast. Quite the opposite, in fact.
If there are essential items that you use and need being sold for less, then by all means, it’s a great way to save some bucks. But not buying just because.
Make Further Cuts of Unnecessary Costs
Take another look at your monthly expenditure and see where else cuts can be made. It could be something simple like switching to generic store brands for your groceries or finding cheaper ways to enjoy your social life.
For example, instead of spending $40-50 on a night out drinking in a bar, how about you go see an afternoon movie? Or simply spend time in the park, by the beach or exercise with friends. There’s no law stating that the only way to have fun with friends is by spending money. (If there is, we’re making a new one).
There’s also no need to cut such activities as karaoke night or bar meetings entirely. If you normally go out with friends twice a week on Friday and Saturday nights, try limiting your outings to only one night a week, or even every other week, and the savings will rack up.
If you normally spend our previously mentioned conservative estimate of $40-50 on a night out, cutting back by one night per week can save you up to $200 a month. When you add in tips, rideshare, and cover charges, you’ll realize your night actually costs closer to $100.
Find as many areas of your life as you can to cut down the expenses, and you’ll be closer to saving those $1,000.
Attack the Problem from Two Fronts
Quickly saving $1,000 in a month or so means attacking the problem from 2 fronts. You need to make savings and cuts to your expenses as we described in the previous section, but you will also benefit greatly from increasing your income wherever possible.
If your current job affords you enough spare time and energy in the evenings or weekends, then invest some of that time into a side gig.
It could be anything from transcribing audio to text, freelance writing/editing, online tutoring, selling your own handicrafts online, making a digital course and then selling it online…the list goes on.
If you’re worried that you won’t have the energy to start a whole new gig on the side, then an alternative is to ask the place you currently work for some additional hours or projects. That kind of investment in time can set you in good stead in the long term, as you may be considered for future promotions. Your boss doesn’t have to know you’re only doing the extra work for the money!
Just a few hours a week can really make a difference financially, adding up to $400-500 a month to your balance. When you put that together with your savings, you’ll find that the $1,000 is already with you.
Channel the Savings Somewhere Useful
At the end of the process we’ve described above, you should have at least $1,000 extra at the end of the month. The next question is, what are you going to do with that money? Smart answers include:
- Put it into a savings account
- Invest it in mutual funds or some other safe, long-term investment
- Set it aside for a larger financial goal – e.g., down payment for an apartment/house
Anything along these lines is good. If you were thinking you’d blow it all in Vegas or on a shopping spree… Well, it’s your money, but reconsider for the sake of your finances.
While there’s certainly nothing wrong with enjoying a percentage of your hard-earned savings in fun things, the biggest part of the money should be put to work for you! If you make smart financial decisions now, it may come a time when you don’t have a shopping spree’s limited budget.
Finally, you’ve achieved this in a single month without facing much hardship. Imagine what you could do if you applied this habit across the entire year? And beyond? Turn a month’s savings into the habit of a lifetime and you’ll enjoy a wealthier, more comfortable life.