Saving $10,000 a year may seem almost impossible, but with the right strategy it’s actually very doable. Whether you’re saving for a specific financial goal—like a new car or a new home—or want to bolster your emergency fund, here are some steps to start you on your way to saving $10,000 a year.

1. Create a detailed budget

A well-structured budget is the cornerstone of successful saving. Track your income and expenses meticulously (Brigit’s Finance Helper is a great tool for this) to understand where your money is going. Then you can look for areas where you can cut back and put more funds toward savings.

2. Set clear financial goals

Having specific financial goals gives you motivation and focus. Whether it’s for a down payment on a house, paying off debt, or building an emergency fund, clearly defined objectives help you stay committed to your savings plan.

3. Automate your savings

Make saving a no-brainer by setting up automatic transfers from your checking account to your savings account. That way, part of your income is going toward your savings goals without you having to even think about it or do anything!

3. Reduce spending on things you don’t need

Take a close look what you spend on non-essentials—things like food delivery, shopping, and streaming services. If you cut back on these types of expenditures, you can free up a surprising amount of cash for savings. Try to cook more often, consolidate streaming services, and carefully consider every purchase to make sure it’s really something you need

5. Shop smarter

When you’re shopping, look for ways to save—discounts, coupons, and loyalty programs where you can earn points or rewards. Check out cashback apps and browser extensions that search for coupon codes and let you earn rewards for your everyday purchases. Also try to buy generic instead of name brands, and try to avoid impulse purchases (those can really add up!)

6. Negotiate your bills for a better rate

Review your cable, internet, and insurance bills. Contact your service providers to negotiate for better rates or ask about available discounts. Usually, if you hint that you’re considering switching to a competitor they’ll give you a better price to keep you. You may be surprised at how much you can save with a simple phone call!

7. Refinance high-interest debt

If you have high-interest debt, like credit card balances, take a look at refinancing options. Transferring your credit card debt to a card with a lower interest rate or debt consolidation can reduce your overall interest payments, freeing up money for savings.

8. Maximize retirement contributions

Contributing to retirement accounts not only secures your future but can also lead to significant tax benefits. Maximize your contributions to retirement plans like 401(k)s or IRAs to take full advantage of employer matches and tax incentives.

9. Reduce housing costs

Housing is typically the most significant expense for individuals and families. Explore ways to reduce housing costs, like downsizing to a more affordable home, refinancing your mortgage to get a lower interest rate, or renting out a spare room or property.

10. Cut transportation costs

Transportation expenses, including car payments, insurance, and fuel, can add up quickly. Consider carpooling, using public transportation, or even biking to work if possible. Additionally, take a look at your current car insurance policy to make sure you’re not overpaying for coverage you don’t need.

11. Save windfalls and bonuses

When you have an unexpected financial windfall, like tax refunds or work bonuses, avoid the temptation to spend them frivolously. Instead, put a significant chunk toward your savings goals.

12. Review and adjust your insurance policies

Regularly review your insurance policies, including health, life, and home insurance. Shop around for better rates and adjust your coverage to match your current needs. This can mean substantial savings over time.

13. Consider a side hustle

Taking on a part-time job or freelance work can provide an additional source of income. Your side hustle earnings can be dedicated totally toward your savings goal, accelerating your progress.

14. Practice energy efficiency

Reduce your utility bills by being more energy-efficient at home. Simple measures like sealing gaps in windows and doors, using programmable thermostats, and turning off lights and appliances when you’re not using them can lead to noticeable savings.

15. Eliminate or reduce debt payments

Working toward paying off high-interest debt should be a priority. The money that was once allocated to monthly debt payments can be redirected into your savings account once you’re debt-free.

16. Avoid lifestyle inflation

As your income increases, resist the urge to inflate your lifestyle along with it. Instead, maintain your current standard of living and put any extra income into savings or investments.

17. Track your progress

Regularly monitor your savings progress to stay motivated. Celebrate milestones along the way to $10,000, whether it’s saving your first $1,000 or reaching half of your goal.

18. Stay committed and persistent

Saving $10,000 a year requires discipline and consistency. There may be months when you have unexpected expenses, or you face setbacks, but don’t be discouraged. Stay committed to your savings plan, make adjustments as needed, and continue working toward your goal.

The bottom line: how to save $10,000 a year

Remember that saving $10,000 a year is not just about restricting your spending; it’s about making smart financial choices and optimizing your resources. By implementing these strategies and staying focused on your financial goals, you can make steady progress toward a more secure and financially stable future.