Saving 10K Pounds in a year is possible with the right approach. You need to follow a lot of discipline and get some inspiration to make your dream come true.
Last year, I went through this way and also I applied various effective strategies in my way of living. However, the path is not as easy as it seems to be.
We know that 10K is a huge amount of money, so you may think saving 10K in a year is difficult. But do not be put off. You need to set a target that will be more suitable to your circumstances.
So, if you are interested in learning the practical steps of how to save 10K Pounds in a year UK then this article is for you.
Here, in this article, I am going to wrap together the steps to save 10000 pounds in a year in the UK.
How to Save 10K in a Year UK:
1. Budget and Track your expenses:
To create a smart budget, you must first know what you are currently spending money on. Every day expenses or costs play an important role in creating your budget and tracking your expenses.
tracking your expenses is another valuable exercise to let you know which expenses are necessary and which are not. Thus, you can cut several unnecessary expenses and find ways to save money.
There are various budgeting and spending apps that can help you in this way. Otherwise, you can do it on your own.
You need to consider your monthly income and your expenses and identify areas where you can make some changes such as eating out, night out, or subscriptions.
While budgeting, one thing you must keep in mind is that you need to change your money mindset permanently.
You need to think about what purchases are necessary and can bring joy to you. Further, what purchases help you to stick to this budget?
2. Try Cutting Unnecessary purchases:
We all do it. You can sign up for memberships or subscriptions but later we completely forget about it or we don’t really need that.
This is one of the easiest ways to get money back. The first thing you need to do is to check your standing orders and direct debits. Then think twice about what you really need and what do not.
One simple thing you can do is you can create two lists at the beginning of each month. One list of your needs and another one is of your desires.
There is no chance to cut anything from the “need” list, but there is more chance to cut unnecessary purchases from the “desire” list.
Another thing, let’s assume your annual gym membership costs 500 Pounds a year. And your TV subscription costs 360 pounds a year.
You can cut these expenditures and you can swap to the free options such as running, walking, or playing football and using Free TV services like Freeview.
Plenty of little adjustments like these can really add up. You can cut eating out bills, drinking coffee in a cafe instead you can make your dinner and coffee at home.
3. Automate Your Savings:
Automating your savings is a great way to keep yourself on track to save 10K Pounds. You can set up a direct debit from your bank account to your savings account every time you receive your salary.
This, you can save a portion of your income every month automatically.
Some debit cards also put aside a small amount each time you make a purchase. So, you can be able to save as you purchase.
4. Cut Back on Entertainment Expenses:
It was very difficult for me when I was targeting to save 10K in a year. It can be the toughest for you to execute.
However, cutting back on days and nights out hugely decreases your outgoing spending. We all spend around a hundred Pounds a month on entertainment expenses and do not even bother about it.
When planning to save 10K in a year, you must consider cheaper options. You can ask your friends to join in a board game and a bottle of wine instead of costly night outs.
5. Get Another Source of Income:
It may not be the one you want to hear. However, it is the most straightforward way to ensure you reach 10K in a year.
Anyone without experience can earn 18k in a month from a 9 to 5 job when enough effort is applied. So, it may not be possible for him to save 10k in a year.
So, you need to give up some evenings or weekends to earn some amount from a part-time job.
You can try for a waiter, bar staff, or Uber driver. Your total income must be 23k per month or more to stand the best chance.
So, you can try for another part-time work that can eventually turn into a source of income. Besides, it will provide more financial security to you.
6. Shop Around for Better Rates and Deals:
Whether swapping to a better supermarket, switching to every provider, or looking for a better deal on insurance; shopping around is one of the best ways to save your money.
When interest rates increase, the rates on saving accounts also rise. While the savings market is competitive, it will be worth it to shop around to get the right place to save money.
Different types of accounts offer varying levels of interest, so you must research various account types to know what will be right for you.
If you have a credit card you can consider using the 0% balance transfer option to cut the interest on any existing debts. Also, it will lower the cost of further borrowing.
7. Shop for Discounted Food:
There are plenty of supermarkets in the UK that have initiated discount food at different times of the day. So, you are most likely to bag bargain after 6 pm or onwards.
This is the time when the food will expire tomorrow and start to be discounted.
So, you can look for the yellow stickers on the food that you need. But you should not purchase any food item that you do not need since it will be a waste of your money.
You can freeze the food you purchase on the day so that you don’t waste it.
FAQ:
Is it possible to save 10K pounds in a year:
Ans: Yes, it is achievable with a structured plan, and with goal focused mindset. Yes, there is a bit of self-restraint associated with executing the plan.
However, you can make various mistakes along the way, but you should stick to your aim. A successful saving strategy will help you to learn from your mistakes instead of shaming yourself over them.
How Long does it take to save 10K pounds in a year?
Ans: Let’s break down. If you are targeting to save 10K in a year that means you have to save 833.33 Pounds a month.
If further I break down, it means you have to save 191.31 each week or 27.40 Pounds each day. If you are saving this amount with your spouse then divide this amount into two.
Is saving 10k Pounds in a year good in the UK?
Ans: Yes, if you can save 10K Pounds in a year then it can secure your financial future. These savings will have a substantial impact on your long-term financial well-being.
However, the growth rate of your savings depends on various factors including interest rate, investment choices, and duration of your savings.,
Conclusion:
Although 10K Pounds may sound like a lot it is not unrealistic to save 10K Pounds in a year.
Whether you are saving to purchase a new house of your dreams, or something like that then you require some extra cash. Saving money will help you to avoid being completely buried in credit cards.
Here, in this article, I have put together a few effective strategies for how to save 10K Pounds in a year in the UK. You just follow these tips to reach your goal in no time at all.
