Saving 10,000 euros in 1 year

If I have one resolution for 2021, it is to manage money even better. I say ‘even better’ because I have been working on it for a while. Let's just say that before September this year, I never received a sticker from the teacher for an organized administration. And that's quite an understatement.

How did I turn it around? I learned to enjoy finances. Every weekend, I now spend half an hour with a nice cup of coffee reviewing the income and expenses of that week. It's a sport for me to track the difference between paper and bank account, if there is any, and to see how much buffer I can build up. In the beginning, I sometimes got frustrated adding and subtracting, but that's over now and I have a goal. In 2021, I want more income, more savings, and more investments. I came across a nice plan at Workjuice to gather 10,000 euros in one year. This is the way to build that buffer.

Puck from Fire for Women actually advises to build a buffer of three months of income. This way, you always have room if things don't go as expected, for example, due to the end of a relationship or dismissal. So always calculate how much you need to get by for three months and set this aside in a savings account. Back to that 10,000 euros, because how do you gather that?

First things first, calculate how much you need to save per month to gather this amount. The quick calculation says it should be 833.33 euros. Which is really a lot of money, so that means you need to be smart in your approach. Therefore, subtract holiday pay and any bonus or year-end payment from the total amount to be saved and recalculate the monthly amount. This saves you another 100 euros per month that you need to set aside to reach it. Consider whether it is realistic to set this aside, because if you can't get close to this amount, you might as well set a more achievable goal.

Then go through your income and expenses. Which unnecessary subscription can you cancel, can you lower your gas-water-electricity, is it really necessary to order food every week, and why do you spend 300 euros a month on clothes that don't fit in your closet? Look at your expenses without emotions and be tough on yourself. Maybe this is the moment to start that challenge where you don't buy new clothes for a year or live on fifty euros a week. Just watch how quickly you save that amount.

Now we come to the side hustle. Is there a way to earn extra money alongside your usual income? This can be done by taking on an extra freelance assignment or, for example, selling or renting out what you don't or hardly use. Did you know that you can rent out your car per day for a pretty decent amount? Or your house, if you go on vacation for a week? You can dog-sit for the neighbors one day a week or do a freelance job for another company in the evenings. There are many ways to earn some extra or ensure that you don't incur costs. Think of a house swap if you want to get away for a weekend or offer your services in exchange for something from someone else. Be creative.

I also believe in the conviction that what you don't see, you can't spend. So make sure that the amount you need to save disappears from your checking account as soon as it comes in. And also immediately book off any windfall and don't live more loosely when you get a salary increase. Finally: keep track of it. The better saving goes, the more fun it will become. It also helps enormously to attach a goal to that 10,000 euros. If you have a world trip, wedding, or new house in sight because of that money, saving becomes much easier.

Source: Workjuice