How to add $1000 to your bank account this year

January 24, 2018
Saving money can seem like an impossible challenge. You may be able to find a few extra dollars each month to put into some sort of savings account, but you will ask yourself “is that really going to make a difference?” Yes, a few dollars a month can eventually add up to a nice “rainy day fund” or may help pay for a vacation, but it probably will not make you rich.
How to add $1000 to your bank account this year

But what if you could put $1000 in a bank during the coming year? Here are some ideas to help you get your savings above the “three figure” barrier

Get started

The hardest part of saving money can be simply getting started. If you do not have a savings account, find one that does not have a deposit minimum. Put $5 into the account (or more if you can afford it). It is important for motivation and also practicality to really start saving instead of just planning on paper without making a real deposit.

Get your budget in order

The next step is to get your budget in order. You will need to make certain that you are covering all your expenses because the subsequent steps involve cutting your expenses. Once you have a plan to pay all your expenses using your current monthly income figures, you can move to these next steps.

Find places to cut monthly expenses

You can find plenty of places to cut your monthly expenses. Perhaps you could seek to lower your fixed monthly bills. You could find a cheaper cell phone plan, stop a video streaming subscription or take steps to lower utility bills. Keep in mind, $1000 per year breaks down to about $83 per month. Depending on your current subscriptions and bills, you may be able to cut $83 per month with this step alone.

Lower variable expenses

Spend less than the budgeted amount while shopping for food and necessities. Obviously, you do not want to go without food or personal products such as toilet paper and toothpaste. However, you may be able to save by buying cheaper products or generic brands. If you can save $5 -$10 every time you shop, this can become a significant amount of your required $83 per month savings.

Cut extravagances

If you buy coffee outside of your home each morning, you could try making it at home. This could prove much, much cheaper. If you eat lunch outside, consider making your lunch at home and carrying it with you to work.

What about extra expenses?

You may be able to save the $83, but, inevitably, there will be unforeseen expenses that could ruin your savings plans. Instead of using your $83 per month for these emergency costs, consider getting an online personal loan. These loans are easy to obtain if you have a job and bank account. You can use the loan to pay for your expenses. Then, you can adjust your budget to repay the loan without touching your savings. This will keep you on track to your ultimate $1000 goal.