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Do you need money for a specific goal like a down payment? 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 or to get rid of credit card debt.
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 6 or even less months.
Is it 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 and save money, and if you followed every single step, you will easily be able to meet your money goal and save $5,000 in 6 months.
You only need to save $193 a week to meet the $5,000 in 6 months goal! Saving $800 a month is another way to look at it.
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 money!
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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 account until you have $5,000.
Of course, only following 1 or 2 of the steps in this savings plan 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 teach you how to save $5,000 in 6 months.
More reading: What is the 30/30/30/10 Budget Rule?
1. 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, and have a money saving plan, 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, those extra dollars. Then, figure out the way to do it, and stick to it!
Get yourself motivated now, and work to save money until you meet your personal finance goal.
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2. 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! This will help you control how you spend money, which will create more money you can save.
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 money 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.
3. 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.
4. 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.
Again, the less money you spend, the more money you will have to save. When it comes to personal finance, always looking for ways to save money will help you in the long run.
5. Cut Down your Expenses
Look for ways to cut your expenses. Downsize your lifestyle to find more money. You can sell your car and get something cheaper to lower your monthly payment.
Take on a renter to reduce hour housing expenses. Sign up with a company like Consumer Cellular and cut your cell phone plan bill in half.
Look for any ways you can to cut expenditures!
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6. 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.
There are tons of ways you can earn extra income with a side hustle. And, this is probably the number one way to save money fast.
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.
7. Take Control At The Grocery Store
Grocery shopping can make or break your bank account. If you aren’t careful, food costs can eat up your budget.
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 to find more ways to save.
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.
8. 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. Look for unnecessary expenses you can eliminate. Additionally, take a look at how many subscriptions and streaming services you are using, and decide whether you really need them.
After all, do you really need to be paying for Netflix, Paramount+, and Disney+? Recurring expenses like these can really add up.
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 and will help free up extra money.
More reading: How Much is $20 an Hour a Year?
9. 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. And they can keep you from meeting your financial goals. You really should try to avoid shopping online for the whole six months, 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.
You can start saving until you stop spending.
10. 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 extra cash, but it is also a great way to declutter your home!
11. 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. Might as well find ways to save that are entertaining.
Just keep finding creative ways to generate extra cash and help yourself save $5,000.
12. 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 bank account 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 $5,000 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.
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?
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 and an emergency fund. These days, times are pretty hard, and it is getting harder and harder to keep savings.
Even if you’re not saving money 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 6 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 of saving money.
How Can I save $5,000 in 6 Months with Envelopes?
I’m sure you have heard of the envelope system of budgeting. It is a super easy way to control your finances by putting cash into envelopes for different spending categories and then only spending what is in the envelope.
You might be wondering how you can save up a $5,000 envelope in 6 months. You can make 26 envelopes, 1-26 for each week of the year.
Then, put $193 into each week’s envelope. It is that simple! If you are using the envelope system for all your expenses, then every time you have extra in an envelope, push it to your $5,000 savings envelope.
How Can I save $5,000 in 3 Months?
If you want to save up the money more quickly, you will just have to be more aggressive. Instead of saving $193 each week, you will need to save $386 per week.
You may have to combine several of our tips above in order to do this. And most definitely to help yourself, find some ways to generate extra income. It will get you to your money goal much faster.
Best Tips to save $5,000 Fast
Here are our top tips for you if you want to save $5k fast!
Combine several ways to save money such as reducing your expenses, downsizing your lifestyle, and eliminating online shopping.
Make money fast: Start a side hustle, rent out your spare bedroom, sell your stuff and take an extra job.
Final Thoughts on Saving $5,000
While all of these tasks may seem simple enough to achieve in six months, 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! If you eventually want financial freedom, you need to start now.
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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