7 Ways To Save $5,000 In One Year

Dean Benson
3 min readApr 5, 2024

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Saving $5,000 in a year might seem like a daunting task, but with a planned approach and consistent effort, it’s certainly achievable. Breaking down this goal, you need to save approximately $417 per month, which is only a bit over $13.00 per day. Can you cut out Starbucks and McDonalds daily? Here are seven strategies that can help you reach this target:

1. **Automate Your Savings**

Setting up automatic transfers to a savings account can help you save without having to think about it, your employer can split your paycheck into different accounts. Determine a fixed amount that you can comfortably save each month or week, then set up an automatic transfer for this amount from your checking account to your savings account. If you’re aiming for $5,000 in a year, you would set aside about $417 each month. Automating this process ensures consistency and prevents the temptation to spend the money elsewhere.

2. **Cut Unnecessary Subscriptions**

Most of us pay for subscriptions that we rarely use, whether it’s streaming services, magazines, or gym memberships. Review your monthly subscriptions and cancel any that you don’t use regularly. If you find $50 in subscriptions to cut out that you don’t use, that’s $600 saved over a year, which gets you more than 10% closer to your $5,000 goal. Review your credit and debit cards to find these.

3. **Reduce Dining Out**

Eating out or ordering takeout can significantly increase your monthly expenses. By cooking at home and preparing meals in advance, you can save a substantial amount of money. Suppose you spend $30 on average each time you eat out, and you do this three times a week. By reducing this number to once a week, you save $90 a week, or about $360 a month, which adds up to $4320 a year, darn close all by itself.

4. **Shop Smart**

Take advantage of sales, coupons, and cashback apps when shopping for groceries, clothing, or any other necessities. I use Upside for gas, (use my link please) Dean6364, it saves a few dollars per month. Planning your shopping around deals or using a cashback credit card (and paying it off in full each month to avoid interest) can help you save a percentage of every purchase. Even a 10% saving on a $500 monthly shopping budget can save you $50 a month, totaling $600 a year.

5. **Downgrade Your Plans**

Review your phone, internet, and cable plans to see if you can switch to a cheaper option that still meets your needs. Often, companies offer promotional rates to new customers or will negotiate pricing to retain current customers. Saving even $20 a month by downgrading your plans or negotiating better rates adds up to $240 a year.

6. **Start a Side Hustle**

Generating extra income through a side hustle can significantly boost your savings. Whether it’s freelance work, selling items online, or a part-time job, find something that fits your schedule and skills. An extra $100 a week from a side hustle can contribute $5,200 over a year, directly achieving your goal. There are thousands of gig-type jobs and opportunities. (See www.Roadmapmogul.com)

7. **Adopt Energy-Saving Habits**

Reducing your utility bills by adopting energy-saving habits can contribute to your savings. This includes turning off lights when not in use, using energy-efficient appliances, and adjusting your thermostat settings. Even a 10% reduction on a $150 monthly utility bill saves you $15 a month, which is $180 a year. Make sure to unplug your charging devices too!

Execution and Discipline

Reaching a savings goal of $5,000 in a year requires both strategic planning and discipline. It’s crucial to monitor your progress and adjust your strategies as needed. Regularly review your expenses to identify additional saving opportunities and stay motivated by keeping your goal in mind. Remember, the journey to saving is incremental, and every small step adds up to significant savings over time.

Dean Benson, “The Dean of Rock & Roll” SKY7music.com, middays daily on the “Only Classic Rock” channel.

Also see: www.expertcarguy.com and www.deansfavorites.com

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Dean Benson

Loooong time married, 2 daughters, (I don't scare easily) On Air Personality SKY7music.com Middays the "Only Classic Rock Channel"