How to save $10,000 in One Year ( Even on a Low Income)
How to Save $10,000 in One Year (Even on a Low Income!)
Figuring out how to save on a low income can feel like trying to carry all your grocery bags inside in one trip—totally overwhelming, probably a bad idea, but absolutely possible with the right strategy. One wrong move and either a bag ripps apart spilling all your groceries, or you drop a bag or 3, spilling all your groceries.
Juggling money can often feel the same. With rent acting like it’s auditioning for a role in a horror movie and your paycheck disappearing faster than that one tupperware lid in the back of the cupbard, it might seem impossible to stash away extra cash. But guess what? You CAN save $10,000 in a year, and I’m here to show you how—without living on ramen noodles or selling a kidney (because, let’s be real, you need both)..
With rising living costs, unexpected expenses, and limited earnings, it can seem nearly impossible to set aside extra cash. But guess what? It’s absolutely possible to save $10,000 in one year with the right strategy, a little discipline, and some creative thinking. By making smart financial choices, cutting unnecessary expenses, and boosting your income in small but effective ways, you can achieve your savings goal without feeling completely deprived.
In this guide, I’ll break down practical, actionable steps you can take to hit that savings goal—without feeling deprived or sacrificing everything you love. Let’s dive in!
Step 1: Break Down Your Savings Goal
Saving $10,000 in a year sounds like a wild challenge, like training for a marathon when you can barely jog to the fridge. But here’s the secret—break it down into smaller, less terrifying chunks, and suddenly it’s more like a brisk walk with a snack break in between.
If you’re really struggling to make ends meat and always seem to have more month left at the end of your money, feel free to tweak this challenge to suit your own needs. Try instead aiming for $5000 in savings. The same rules apply to that as they do $10,000 or $100,000. The idea is to simply aim to get ahead, even if its only a little.
By setting clear, bite-sized targets, you can track your progress and stay motivated throughout the year.
- Per Year: $10,000
- Per Month: $833
- Per Week: $192
- Per Day: $27
Now that you have a clear target, let’s get into the strategies to make it happen!
Step 2: Cut Back on Unnecessary Expenses
1. Audit Your Spending
Step one: play detective with your bank statements. Where exactly is your money going? Subscription services you forgot existed? Impulse buys at 2 a.m.? That suspiciously expensive ‘essential oil’ phase? It’s time to track every dollar like it’s a character in a true crime documentary—because some of those dollars are definitely going missing under mysterious circumstances. My weakness is definitely Ubereats when I’m in a new city. Review your bank statements, credit card transactions, and even small cash purchases for the past three months. Now is the perfect time to also check for bank fees and those cheeky overdrawn fees.
Once you have this, make some lists and categories your spending. What is essential weekly bills like rent/mortgage, groceries, child care, etc.
What are essential less frequent payments like car rego, power, water, internet etc.
What are things you can cut or live without? Remember, we are not depriving ourselves here, we are being realistic. Do you always go to your favourite cafe where the barista knows your order and gets it perfect every time, every Friday after work to get yourself your “i survived another week” coffee? Dont skip that, one takeaway coffee a week is not going to break you. One coffee a week at let’s say $7 adds up to $364 a year. That’s hardly going to make a difference in the grand scheme of things. Were looking at the things you can actually live without or the bigger expenses.
Identify patterns in your spending habits and pinpoint areas where you can cut back, such as subscriptions you forgot about, frequent impulse buys, or dining out more than planned.
- Unused subscriptions (Netflix, gym memberships, Amazon Prime)
- Eating out or ordering takeout often
- Impulse shopping
- Luxury expenses (designer coffee, premium brands, unnecessary gadgets)
2. Reduce Fixed Expenses
- Renegotiate bills – Call your internet, phone, and insurance providers to ask for better deals. SOme places can offer deals where if you have the internet and phone with one provider you get a discount. Also, more and more service providers in Australia are offering pensioner concessions. It’s worth making a call.
- Downsize where possible – Move to a cheaper rental, get a roommate, or refinance your loans.
- Use public transport instead of driving to save on gas and parking fees.
3. Meal Plan & Cook at Home
Eating out adds up fast! Meal prepping can save you hundreds per month. Set a grocery budget, buy in bulk, and prepare meals in advance.
Step 3: Increase Your Income
1. Start a Side Hustle
You don’t need to work extra hours at your main job to increase your income. Instead, consider leveraging your skills, hobbies, or spare time to generate extra cash. Whether you have a knack for writing, enjoy crafting, or are good with pets, there’s a side hustle for you. Here are some easy and profitable ways to boost your income:
- Freelancing (writing, graphic design, virtual assistance)
- Selling handmade crafts or printables on Etsy
- Driving for Uber or delivering food with DoorDash
- Pet sitting or babysitting
- Renting out a spare room on Airbnb
2. Ask for a Raise
If you’ve been crushing it at work, now’s the time to channel your inner Shark Tank contestant and negotiate a raise. Gather proof of your greatness—successful projects, revenue boosts, times you fixed Karen’s Excel spreadsheet because she still doesn’t know what a pivot table is. Then, schedule a chat with your boss and make your case. Worst case, they say no, and you awkwardly nod while plotting your escape to a better-paying gig., now is the time to ask for a raise. Start by documenting your achievements, including any projects you’ve led, revenue or efficiency improvements you’ve contributed to, or positive feedback from clients and managers. Research the industry standard salary for your role using websites like Glassdoor, Payscale, or LinkedIn Salary. Schedule a meeting with your supervisor and confidently present your case, emphasizing your contributions and how they align with the company’s success. If a raise isn’t possible, negotiate other benefits such as extra vacation days, bonuses, or professional development opportunities.
3. Sell Unused Items
Time to turn your clutter into cold, hard cash. That pile of ‘I’ll wear this someday’ clothes? Sell them. That treadmill doubling as a clothes rack? Gone. That juicer you bought during your ‘wellness era’ but only used once? Sell it to someone still in their wellness era. Post your stuff on Facebook Marketplace, eBay, or Craigslist—just be prepared for messages like ‘Is this still available?’ followed by radio silence. Take a weekend to go through your closet, garage, and storage spaces to find items you no longer use. Sell clothes, furniture, electronics, or collectibles on platforms like Facebook Marketplace, eBay, Poshmark, or Craigslist. For higher-value items, consider specialty platforms like StockX (for sneakers) or The RealReal (for designer goods). You can also host a garage sale for a quick cash boost. Not only will you earn extra money, but you’ll also create a more organized living space!
- Facebook Marketplace
- eBay
- Poshmark
- Craigslist
Step 4: Automate Your Savings
1. Open a Dedicated Savings Account
A separate high-interest savings account keeps your money out of sight, reducing the temptation to spend it. Look for an account with no monthly fees and a competitive interest rate to maximize your savings. Consider using an online-only bank, as they often offer higher interest rates compared to traditional brick-and-mortar banks. Macquarie Bank is currently offering an amazing interest rate too. Naming your savings account with a specific goal, like ‘Dream Vacation’ or ‘Emergency Fund,’ can also help keep you motivated to save rather than spend.
My favourite way to name and categorise my savings accounts is actually taken from YNAB ( I love YNAB, this is not an affiliate or sponsored post at all).
I find naming them Weekly expenses, True expenses ( for those less frequent expenses like car rego or Christmas) Emergency fund.
2. Set Up Automatic Transfers
Schedule a weekly or monthly transfer to your savings account, even if it’s just $10 or $20 at a time. Small amounts add up over time, and automating this process removes the temptation to skip a deposit. Consider setting your transfer to occur right after payday so you prioritize savings before spending.
3. Use Savings Apps
Apps like Raiz, Digit, or Qapital round up your purchases and save the spare change for you. These micro-saving apps work by automatically transferring small amounts into your savings account every time you make a purchase, making it effortless to build savings over time. Some apps even allow you to set up recurring deposits, savings challenges, or invest your spare change into stocks or ETFs for potential long-term growth. Explore their features and choose one that best aligns with your savings goals!
Step 5: Cut Out Debt & Interest Payments
If you’re carrying high-interest debt, such as credit card balances or payday loans, it can significantly hinder your ability to save. The interest charges can pile up quickly, making it feel like you’re stuck in a cycle of debt. To break free and reclaim your financial freedom, prioritize paying off debt by:
- Using the snowball method (smallest to largest debts) or the avalanche method (highest interest first).
- Consolidating debts into a lower-interest loan.
- Avoiding new debt—stick to cash or debit!
Step 6: Take Advantage of Free Money
1. Cashback & Reward Programs
Use apps like Rakuten, Ibotta, and Honey to earn cashback on everyday purchases.
2. Government Assistance & Rebates
Look into tax refunds, energy rebates, or local grants that could put extra money in your pocket.
Step 7: Stay Motivated & Track Progress
1. Use a Savings Chart
Grab a savings tracker and treat it like an adult coloring book—except instead of filling in pictures of cats in sweaters, you’re coloring your way to financial freedom. Bonus: Every time you hit a milestone, you get to flex like you just won a game show. as you go—it’s surprisingly motivating! Seeing your progress visually can make a huge difference in keeping you on track. You can find printable savings trackers online or create your own using a bullet journal or spreadsheet. Consider breaking it down into smaller increments, such as $500 or $1,000 milestones, so you get a boost of motivation each time you reach a new level. Stick it somewhere visible, like your fridge or workspace, as a constant reminder of your goal.
2. Create a Vision Board
Stick a Post-it note to your mirror, set a reminder on your phone, or get your best friend to text you ‘DON’T BUY DUMB STUFF’ once a week. Whatever keeps you on track! Your future self will thank you when they’re sipping a margarita on the beach instead of stress-eating ramen noodles at 2 a.m.—whether it’s a vacation, financial security, buying a home, or achieving financial independence. Write down your goals and place them somewhere visible, like a sticky note on your mirror or a note on your phone’s home screen. Visualizing your end goal can keep you motivated and make the sacrifices feel worthwhile. You can also use digital goal trackers or budgeting apps to see how each step brings you closer to your dream.
3. Celebrate Small Wins
Celebrate your savings wins! But instead of blowing your progress on something ridiculous, treat yourself smartly—maybe a fancy coffee, a movie night at home, or dancing in your living room like you just found $20 in your coat pocket. Financial goals should be fun, not soul-crushing! when you hit milestones—treat yourself to a $5 coffee, a relaxing bath, a fun DIY project, or a free day at the park. Small rewards help reinforce positive financial habits while keeping you motivated on your savings journey.
Final Thought
Figuring out how to save on a low income, especially saving $10,000 in a year might sound like a challenge, but with the right mindset and strategies, it’s totally doable. By cutting unnecessary expenses, increasing your income, automating your savings, and staying motivated, you’ll be well on your way to hitting your goal.
Are you ready to start saving? Let me know in the comments which tip you’ll be implementing first!
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