Everyone wants extra cash, whether you have bills to pay, you want to go on vacation, or maybe you don’t want to spend it on anything yet, but you wouldn’t mind having it anyway. We all would like to know how to save $5,000 in a year. Unfortunately, though for most, saving extra cash can be a hard thing to do. Especially with rising inflation and low wages. That said it is possible and today we are going to go over some examples of how you can save an extra $5,000 this year.
Increase your income
Now this first way is not always an option for everyone depending on your current time
commitments, but as most people come to figure out it is easier to increase your income than to decrease your spending. If you have the extra time though taking a second job is a great potential way to save an extra $5,000 or possibly even more this year. Whether it be working weekends at a local store or freelancing your talents online there are many possibilities for finding a second source of income. If you really do not have the time for a second job but still want to increase your income, talk to your boss about a raise. As long as you put in the work and show your value to your boss, they can be very receptive to your request. If you can really find a way to increase your income by a substantial amount it is very possible you could save $5,000 in six months even.
Set up Automatic Savings
Another way to help you save more of your money is to set up automatic transfers on your bank accounts or even with your employer, so paychecks are split between accounts when paid. That way you never even see the money in your account and so you will not spend it. If you are paid bi-weekly like most of the workforce, you can set up to have $208 set aside from each paycheck and after a year you will have saved an extra $5,000.
Cut out Expenses
The last method we have today is by far the most difficult. Cutting your expenses is not always the easiest thing to do. Everyone loves to spend money on things they enjoy. However, if you really want to save this can be a very good method to do so. Check your bank statements to see what you are spending your money on and identify things that maybe you do not necessarily need. If you have subscriptions every month, check to make sure that you are still using those services. If you do not have the time to review all of those manually there are many apps out there that can help you identify your subscriptions and even help you cancel them. One of the best ones available right now is DoNotPay available on IOS and Android. For more information on other apps to help you cancel your subscriptions check out this article by ccm.net.
Now while we know there are of course other methods you can use to help you save an extra $5,000 this year, these three are our top suggestions. If you have any other methods you would like to share, please feel free to mention them in the comments below, and as always thank you for choosing The Money Talks as your go to for financial questions!
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