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Do you need money for a specific goal? Are you planning on getting married? Are you in a panic because your baby is on the way? Or perhaps all you need is a solid backup reserve for emergencies.
In any case, everyone has a reason for wanting to save money, and while it may seem like a good concept, not everyone can go the extra mile to truly move their savings forward.
While it is one thing to put an extra buck away every so often, it is another to consider the idea that you could be saving $5,000 in less than a year.
Is this even possible? How can someone put away $5,000 in 6 months?
In this article, I will help you make this theory a reality. Continue reading to find out how you could save up to $5,000 in the next couple of months.
Why Do You Need $5,000 in 6 Months?
First of all, before we get into the how’s of this theory, we should take some time to look into the why’s.
This may seem like a stupid question. After all, who couldn’t use an extra $5,000?
However, in reality, most of us could really benefit from having $5,000 to spare.
As I mentioned earlier, you may be saving for a wedding, or a new addition to your family. You could be saving for a new house, or a vacation or maybe you want to start a business.
Or, maybe you could just use some comfort money behind you. These days, times are pretty hard, and it is getting harder and harder to keep savings.
Even if you’re not saving up for a big event, it is always comforting to know that you have a big lump sum saved away for a rainy day.
Whatever your motivation is for saving $5,000 in six months, you must devise a strategy that will enable you to generate the monthly income you need.
But, more importantly, you need to find the initial drive and motivation to begin this process.
More reading: What is the 30/30/30/10 Budget Rule?
How to Get Motivated
Motivation is such a powerful tool. There are so many things that we could easily do right now in each of our lives, but we don’t, because we are not motivated to do so.
The spare room that needs cleaning. That laundry basket that is almost filled to the brim. The extra pounds that you gained over the festive season. Depending on who you are, some of these may be aspects that play on your mind.
The funny thing is that each of these ‘issues’ is that, for the most part, they’re all pretty easy to solve. There are individual formulas that you can follow to successfully eliminate them.
The same can be said for saying $5,000 in 6 months or less.
Once you are motivated enough, you will be able to achieve virtually anything. Yes, I’m aware how cheesy that sounds, but it is absolutely true!
Right now, you’re probably thinking that it is impossible to earn that amount of money in that amount of time, and that is exactly why you need to switch your thought process around.
Think about why you want, or need, that money. Then, figure out the way to do it, and stick to it!
Get yourself motivated now, and work until you meet your financial goal.
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Is it Even Possible to Save $5,000 in 6 Months?
Okay, so, is there really a way to save $5,000 in 6 months, or is this just one of those articles that says a load of meaningless stuff that won’t actually help you in the long run?
Nope. The steps listed below are foolproof ways to make/save money, and if you followed every single step, you will easily be able to save $5,000 in 6 months.
In fact, you could even, potentially, save that amount of money within less time. So, now, let’s get started. Or, rather, let’s get saving!
**Make sure you are saving your money in a high yield savings account. That way you are earning money on your money every month! I recommend this one from CIT Bank.
How to Save $5,000 in 6 Months (or Less)
Below, I have listed 10 ways that you can, bit-by-bit, build up your savings until you have $5,000.
Of course, only following 1 or 2 of these steps will not help you save that amount of money. However, you can choose to follow a handful of these steps, and you will still be able to save up a significant amount.
Here are our 10 steps that’ll help you save $5,000 in 6 months.
1. Set A Budget
I can already feel every single reader rolling their eyes at this one. Oh, as if it’s SO easy just to set a budget and automatically save up 1,000’s of dollars!
But, well… it’s true.
As I said earlier, you won’t be able to save $5,000 just by following one of these steps. This is just the initial building block to create that foundation.
By setting a clear, rigid budget that you cannot go over, you will be so surprised at how quickly the pennies count themselves!
You estimate your monthly income before the month begins, giving each dollar a job before you spend it.
Make a list of all the necessary expenditures you will be making, such as rent, insurance, and car costs.
You can then create a zero-based budgeting plan, which allows you to spend as much as you like, with the aid of online financial calculators. Just make sure to schedule it around your necessary bills to prepare.
Once you know how much money you are allowed to spend, you can work out how much of that money you can put into savings before you’ve even received your paycheck.
Here are 21 free printable budget templates to get you started.
2. Create A Progress Chart
You know those charts that you see pinned up in schools, or your workplace, with set goals written down at the side?
They’re usually used for charity events, or fundraising goals. They are used to measure how much money has been earned for that specific cause.
Why not make one for yourself?
Create a progress chart, and split it into sections so that you can celebrate when you have reached the smaller goals.
Every time you hit once of these goals, you can celebrate! If you have some money left over from your budget, you can use it to celebrate reaching a goal.
This will also help with motivating yourself, as you will, technically, be rewarding yourself.
Here is a fun template you can print out and use, or you could easily draw out your own. You could also get a calendar and mark the $5,000 in 6 months mark on it to track your progress.
If you are looking for a less aggressive way to save, you can try the 365 day nickel challenge.
3. Work Out ‘Free’ Ways to Have Fun
Over the following six months, one of the most important abilities you’ll acquire is the ability to think creatively.
Regardless of where you live or who you are around, you can go picnicking, movie binge, and have game nights without spending a single cent.
In fact, some may argue that smaller activities like these can be more fun than spending vast amounts of dollars on something you may not even enjoy.
If you have a family, think about going for hikes, or to the playground. For date nights, you could have fun taking turns to cook courses for each other, rating who made the best food.
Check out Facebook, or even do a quick Google search, to find out what free events are taking place near you.
4. Pick Up Some Side Hustles
Do you have any hidden talents that you haven’t broken out in a little while? Perhaps you’re a talented painter, or you’ve got a hand at gardening.
You may even just have a crazy passion for animals, and would do anything to spend more time with them.
Pick up a dog-walking gig. Help to tend your neighbors’ gardens. Create some beautiful paintings, and post them on Etsy.
Even if you have no talent, you can use sites like TaskRabbit that will allow you to offer to help people move, or to be their handyman, for money in return.
Take up a side hustle, and get some extra income while doing something that isn’t even that difficult. You may even enjoy it.
5. Take Control At The Grocery Store
Grocery shopping can make or break your bank account.
While this can be more difficult to do if you have a family, you really need to think about savings pennies while shopping. This includes finding cheaper alternatives. I highly recommend this list of 40 foods to buy when you are broke as a means to save more money.
Take a look around your local area, and find out if there are any cheaper grocery stores around.
If not, find out if your local grocery store takes coupons. If so, take advantage! Start collecting coupons, and don’t ever go grocery shopping without them. Just make sure you use them by the expiration date!
And, while this may seem like an obvious statement to make, be sure to create a shopping list before you leave, and do not allow yourself to stray from the list.
Try these other tips on saving money on food.
6. Go Through Your Current Subscriptions
Do you ever look through your bank statements, and freak out when you realize that your current balance is, somehow, a lot lower than you expected it to be?
If so, you need to sit down, and take a look at everything that you are spending money on. You could be paying out for subscriptions that you don’t even use anymore.
If set up with direct debit, these payments are going to keep going out without you even realizing it.
If you discover any old subscriptions, cancel them immediately. Additionally, take a look at how many subscriptions you are using, and decide whether you really need them.
After all, do you really need to be paying for Netflix, Paramount+, and Disney+?
Work out which streaming service has more movies and shows that you are likely to watch, and cancel the others. Trust me, this will make all the difference in the long run.
More reading: How Much is $20 an Hour a Year?
7. Cut Down On Online Shopping
It can be so easy to click a button and order a delivery, even if it seems to be a small purchase.
The thing is, these ‘small’ purchases add up over time. You really should try to avoid shopping online, because it can be so easy to let the purchases pile up over time.
If you really require something, go to the store and buy it yourself. If you find that you can’t be bothered to go all the way to the store, you probably didn’t need it in the first place!
Additionally, avoid using credit companies like Klarna and ClearPay while you are saving.
These apps may seem like a Godsend at first, but again, all those small payments add up eventually, and you may end up paying out a lot more than you would have initially.
8. Sell Your Old Stuff (and Clean Your House!)
This one is simple. Have a spring-clean, and take a look through your things. I guarantee that you will find items that are in great condition, but have not been used in a long time.
Use eBay, Depop, or even Facebook Marketplace to put these items for sale, and you can make some easy money within no time.
This is not only a great way to make money, but it is also a great way to declutter your home!
9. Upcycle Old Items
Adding onto the previous point, you can upcycle old items and clothes to make them go up in value.
If you have even an ounce of creativity in your blood, find ways to improve your clothes, or old furniture, and sell them on for a higher price than before!
Again, this is a double-win, since it is an easy way to make money, but it can also be pretty fun.
10. Lock Your Savings
This last piece of advice may very well be the most important. Many of us are guilty of dipping into our savings during hard times, leaving us with little to nothing left.
You can get certain savings account that you can only open once you have saved a specific amount, or you can only open them after a certain amount of time.
This way, you won’t ever feel tempted to dip into them, as you simply will not be able to.
Trust me when I say that this is, probably, the most effective way to save money. Don’t risk using an easy-access account!
Another way to help you save is to automate your savings with an app like Acorns. I love this app because it rounds up the change on your purchases automatically into a savings account, that doubles as an investment account! So you are automatically saving, but that money you are saving is also being invested for you to earn more.
Use this link and get an automatic $5 deposited to your account.
Final Thoughts on Saving $5,000
While all of these tasks may seem simple enough to achieve, it all comes down to one important factor: motivation.
Once you start these tasks, you will be surprised to notice how quickly the money comes rolling in.
Don’t wait for the ‘right time’… take action right away!
Get started on your progress chart, and start figuring out how you can make some money using side hustles, or selling some old items from your home.
And, don’t forget to open up a high yield savings account like this one from CIT bank!
I hope you found this article helpful.
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HERE ARE MY FAVORITE BUDGETING AND SAVING APPS:
Rakuten for cash back on shopping. Use this link to make a $30 welcome bonus.
iBotta for special offers and cash back on groceries.
Acorns which takes your spare change from purchases and invests it for you to help you make even more money.
Personal Capital for money management. Get a money dashboard, free analysis and personalized wealth advice