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My major goal for this year is to save $10,000. That will cover six months of my bills and miscellaneous expenses. My reason for saving that much money is financial security. I don't want to have to worry about where my next meal is coming from, or how I'm going to pay rent. I want that money already in the bank.
Current Bills And Expenses
My bills include my rent, electricity, cell phone, Internet service, gym membership, and car insurance. Those bills come to $822 a month. Food and gas cost me another $520 a month for a total cost of $1,342. I like to round that number up to an even $1,500 to cover emergency expenses and the occasional night out.
The first thing I need to know when it comes to saving $10,000 in 12 months is how much money I need to save per month. Some quick division tells me that the number is $833. While that's a high number, I don't think it's impossible because my regular bills are so low.
In order to save $10,000 in a year and pay my current living expenses, I need to earn $2,333 per month. In order to do it consistently, I need to also figure out weekly and monthly breakdowns. The weekly breakdown comes to $583.25. The daily breakdown is $84. I currently earn about $60 a day. That means I need to increase my base income by $24 a day. That's not impossible. I can earn as much as $100 a day depending on how long I work.
Can I Cut Back?
The only items I can really cut back on are food, gas and miscellaneous expenses. Right now I spend about $30 a week in gas and $75 a week in groceries. I could probably get away with spending $60 a week on groceries if I cut my meat purchases in half, and I could cut my gas down to $25 a week which would decrease my bills from $1,342 to $1,322. With that $20 bill cut, it means I can decrease my buffer from $1,500 to $1,400.
By doing those things, I can cut my monthly income needs from $2,322 to $2,222 a month which breaks down to $555 a week and $79 a day. I have a better shot of being able to earn $80 a day than I do of earning $85 a day. It's still going to be difficult, but I can do it. I know the numbers, and I can track my earnings. If I fall short one day, I can work harder the next day.
- Finance/Banking & Budgeting