Couple saving money.

How To Save $1,000 This Month

Scott Steinberg4-minute read
September 21, 2020

Living paycheck to paycheck is not uncommon, with 60% of Americans lacking the savings to cover a $1,000 emergency expense such as a car repair or an emergency room visit. But as hard as finding ways to save money fast may seem, no one says that the process has to be difficult or demanding. As experienced money managers know, learning how to save $1,000 a month becomes far easier when you apply a few simple strategies and shifts in thinking.

Step 1: Begin With A Savings Plan

To make your goal of saving $1,000 month more attainable, and sustain motivation as you go about working toward it, start by breaking the process down into smaller steps. Create a household budget. Doing so offers greater visibility into both regular and occasional family expenditures, as well where cash is being spent. The exercise also helps reveal areas where you can cut costs and put more money back in your pocket, and where it’s possible to exert greater control over your income and expenses. In addition, it also helps you get more of a handle on when money is coming in and going out, and manage these cash flows to make sure you’re not having to borrow funds or run up credit – all of which can take more money out of your wallet in the end.

Afterward, you can begin applying these insights in practical ways to save money fast. For example, you might:

 

  • Put away a portion of every paycheck in savings
  • Cut back on dining out or entertainment
  • Cancel unused subscriptions
  • Negotiate better rates on credit cards
  • Lower cable, banking or internet costs
  • Reduce heating, cooling, gas and energy bills
  • Decrease your cell phone bill
  • Capitalize on group rates or employer discounts
  • Carpool to save on transportation- and fuel-related costs
  • Shop at discount-rate providers

Step 2: Create A Meaningful Goal

Contemplating how to save $1,000 is all well and good. But you’ll be more likely to attain your objective if you have a concrete, real-world plan for how you plan to use this extra money – and a personal reason to strive for achieving this goal. Although finding additional ways to save money can help you alleviate worries and achieve greater financial freedom, these aims may often seem nebulous and hard to sustain interest in over time. A better approach is to set a specific end-goal – paying for holiday gifts, taking the family on a much-needed vacation, putting a credit card debt to rest, etc. – that you’ll continue to motivate yourself and work harder toward achieving as you see it continuing to shape.

Step 3: Increase Your Income

One of the easiest ways to turbo-charge efforts to save $1,000 fast is to find additional ways to bring in income. This might involve selling off unused household goods or collectibles you’ve been hanging onto, or taking a second or part-time job to help bring in extra cash.

From selling homemade arts and crafts in online marketplaces to running weekend garage sales to driving part-time for ride-sharing services, more opportunities to take on a side gig (and set your own prices and hours) are available now than ever. Whether you decide to walk dogs, clean houses, or teach your neighbors how to cook or digitize all their old photos and turn them into printable keepsakes, options are endless. Simply pick a topic you’re passionate about and apply yourself, and you can watch extra savings quickly add up.

Step 4: Shop Around

No one says you have to pay a premium for home, auto and health insurance, or pay an arm and a leg for internet or cell phone service. With many providers competing for your business, and offering a wealth of different payment plans and options, be sure to price out the best options.

As you’re going about weighing different offers, don’t forget to consider where you might be able to cut back on usage, or switch to an alternative-use package (e.g. a pay-as-you-go or family cell phone plan) too. In addition, think about where you may be doubling up and paying twice – i.e. for high-speed home Internet when you could use your smartphone as a portable WiFi hotspot – or overpaying (holding too much in rental insurance, when you don’t keep that much in personal property on hand). Oftentimes, you may be able to uncover hidden savings that can go a long way toward helping you save money fast.

Step 5: Hold Yourself Accountable

Most of all, don’t psych yourself out. Discovering how to save $1,000 a month is eminently doable when you set measurable goals and hold yourself to them. If necessary, ask friends and family to help encourage you in your journey, and keep you accountable to benchmarks as you go. A winning support system goals a long way towards staying the course, as does the ability to break your financial journey into smaller milestones – each a well-deserved victory that you can celebrate as you chart a path to greater financial freedom.

How to Save Money Fast

As you can see, learning how to save $1,000 a month is often far easier than it sounds at first. A little upfront planning and forethought can go a long way toward helping you achieve all of your financial goals. The more you make a point to actively manage your money, find ways to boost your income, and create a framework of day-to-day action steps that you can take to stick your game plan, the more successful at boosting your savings you’ll be.

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Scott Steinberg

Hailed as The Master of Innovation by Fortune magazine, and World’s Leading Business Strategist, award-winning professional speaker Scott Steinberg is among today’s best-known trends experts and futurists. He’s the bestselling author of 14 books including Make Change Work for You and FAST >> FORWARD.