Learning how to save money can seem difficult, especially for Americans who feel they have little breathing room. Big sacrifices aren’t always necessary to save, even if it feels like saving $1,000 in six months is impossible.
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Achieving the goal is possible, but it does require purposeful action. Find out below how to save $1,000 in six months to bolster your emergency fund.
Also here’s what you should do once your savings reaches $1,000.
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Create a Budget
Budgeting is key to saving money. It doesn’t have to be arduous. Budgeting apps like YNAB, Tiller or EveryDollar simplify the process. Having a budget helps identify expenses you can cut and automates much of the budgeting process.
Saving $1,000 within six months requires you to save $166.67 monthly. Review your budget to find things you can cut or reduce and monitor your progress to help build momentum.
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Automate Your Savings
Life is busy and it’s easy to forget to save, but it’s important to pay yourself before everyone else. This idea of paying yourself first is crucial to amassing savings and most banks allow Americans to do this for free. And, it can be done in various ways.
You can request your employer to transfer a specific amount to a savings account from each payment. If that doesn’t work, set up the transfer at your bank. Determine an amount that works for you and ask your bank to create the transfer.
Identify Bills To Cut
Saving $1,000 in six months will require some sacrifice. Remember, not all cuts necessarily need to be permanent and cutting back doesn’t always mean reduced quality or enjoyment.
Here are some easy ways to save money and amass $1,000 in savings in six months.
Cut TV Spending
The average American is spending $69 monthly on streaming services, according to Deloitte research. If saving is a struggle, this is an easy area to cut.
Choose one service and cancel the rest. Netflix, Paramount+, Peacock, Hulu and more all have plans starting under $10 monthly, allowing you to save $60 per month.
Switch Phone Carriers
There’s little need to spend $100 or more monthly on cell phone service. The average cell phone bill is $141 per month, according to J.D. Power.
No-contract carriers like Visible or Mint Mobile are reliable alternatives, piggybacking on the Verizon and T-Mobile networks, respectively. Unlimited data, calls and texts are available for under $30 monthly, providing a potential savings of $110 monthly.
Meal Plan
Every time food goes in the trash it’s likely throwing money away. The average household of four has $2,913 in food waste annually or $242.75 monthly, according to the Environmental Protection Agency.
Meal planning can streamline shopping to help enable you to only buy what you need. This won’t eliminate food waste, but cutting it in half will provide $120 in savings a month.
Cancel Unused Subscriptions
Unnecessary subscriptions needlessly waste money. Americans spend an average of $219 monthly on subscriptions, according to C+R Research. Worse yet, the same people polled thought they were only spending $86.
Review your subscriptions. If you can’t remember the last time you used it, cancel the service and claw back the savings.
Negotiate Your Bills
Companies know it’s more expensive to replace a customer than it is to keep a current one. Use this to your advantage. Contact service providers and request a lower rate.
Some providers may not be able to lower your bill, but some will.
Combine Saving and Earning
There’s only so much you can cut. Earning more money is relatively unlimited. If you’re struggling to find ways to save or want to amplify efforts, consider starting a side hustle or asking for extra hours at work to support growing your emergency fund.
Side gig opportunities vary from walking pets to driving an Uber on the weekends. Have the earnings go directly to your high-yield savings account to grow your savings further.
Saving money can be challenging, especially for Americans who struggle with their personal finances. You don’t have to do it all at once. Identify one or two things to cut and go from there. That will provide the confidence you need to grow your savings to $1,000 and beyond.
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This article originally appeared on GOBankingRates.com: How To Save $1,000 in 6 Months
