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It seems everyone has moments in their lives when they find themselves needing an extra chunk of change. Perhaps you’ve got a friend’s destination wedding to attend, an unexpected car repair or you’re trying to build an emergency fund. The road to saving a specific sum of money such as $1,000 can seem challenging, but it’s possible if you’re dedicated and make some adjustments to your budget. Here are 11 strategies for saving $1,000 quickly.
1. Set a clear timeline
First, ask yourself by when you want to save this amount? Whether it’s three months, six months or another length of time, having a clear timeline will help you determine how much you need to save weekly or monthly to reach your goal.
Breaking down the amount you need to save in shorter intervals can help you make concrete changes to your monthly budget and make the end goal more tangible. If you wanted to save $1,000 in three months, for example, you’d need to save roughly $84 per week.
That timeline can also provide you an opportunity to invest in a high-yielding time deposit account. If your timeline is three months, for example, then you could invest in a three-month certificate of deposit (CD) with an annual percentage yield (APY) of 4 percent and let your savings grow at a competitive, fixed rate.
2. Track your expenses
If you haven’t already, it’s important to track every expense, whether that’s in a traditional spreadsheet or through a personal finance app that automatically tracks them for you. By being aware of where your money is going, you can identify areas to cut back on spending. Some budgeting apps even offer personalized suggestions about where you can save.
3. Cut unnecessary subscriptions
Upon tracking expenses, you might be surprised at how many subscriptions have been potentially draining your bank account. From unused gym memberships to excess streaming services, go through your bank statements and cancel anything that’s not essential. By eliminating just two $15 monthly subscriptions, you’d be saving $360 in a year.
4. Dine in more often
According to the U.S. Department of Agriculture, the average consumer spent nearly 6 percent of their disposable income on food away from home. For someone with $60,000 in disposable income annually, that amounts to $280 each month spent on food away from home.
Even just eating in one more time a week over a few months can contribute a significant portion toward your $1,000 goal.
5. Shop smart
Shopping smart isn’t just about searching for the best deals. It’s about maximizing the value of your dollars spent. Some ways you can do this include:
- Compare prices at different stores
- Use cash back apps or a cash back debit card
- Take advantage of loyalty programs
- Buy in bulk, especially for non-perishable items
- Use digital coupons, through apps such as RetailMeNot or Honey
- Shop second-hand
6. Sell unused items
That old camera or those jeans you’ve never worn can be turned into cash. By decluttering, you’re not only tidying up, but also giving your savings a boost. Consider using an online marketplace, such as eBay or Poshmark, to sell everything from clothing to electronics.
7. Set up automated savings
When you treat savings as an essential bill, it ensures that you’re consistently stashing away a set amount of money. You can do this by having a portion of your account balance or paycheck automatically deducted and transferred into a savings account each month. Automated savings features may be available through your online banking system or a third-party savings app.
8. Limit impulse buys
Instead of buying on impulse, which can create unnecessary hurdles in your savings progress, wait 24 to 48 hours before making a purchase. This cooling-off period can help you to evaluate whether you genuinely need the item or if it’s just a fleeting desire. Every time you avoid an unnecessary $20 purchase, for example, think of it as being 2 percent closer to your $1,000 goal.
9. Seek additional income streams
Seeking out additional income doesn’t necessarily mean you need a second job, though that’s an option. Consider an opportunity such as freelancing, whereby you offer services in something you’re skilled in. You could also take on as-needed work through the gig economy, such as by delivering food or doing tasks on TaskRabbit. Or, you can establish an investment portfolio.
Even earning an extra $50 a week from a side hustle translates to $200 a month. In just five months, that alone would get you to your target.
10. Downgrade temporarily
Consider downgrading some of your services temporarily if you want to quickly meet that $1,000 goal. For instance, moving to a cheaper phone plan might save you $10 to $20 a month. If you’re renting, consider moving to a more affordable living situation. The idea shouldn’t be to sacrifice quality of life, however, but rather to make short-term sacrifices for a bigger gain.
11. Give your savings an extra boost of income in an interest-bearing savings account
It’s important to keep your savings in an account that earns interest at a competitive rate, such as a high-yield savings account, money market account or certificate of deposit. Then, you’re not only adding a barrier to impulsive withdrawals, but also earning a bit of extra income. Some savings accounts, particularly from online banks, currently offer rates upwards of 5 percent.
By depositing $1,000 in a savings account earning 5 percent APY, for example, you could earn over $12 in just three months. After a year, you’d have an extra $50 in your account.
Example breakdown of savings
Here’s a hypothetical scenario of how someone could save $1,000 in three months, spread across different areas of saving.
|Savings strategy||Amount saved per month||Amount saved in three months|
|Dining in more often||$100||$300|
|Cutting two $15 subscriptions||$30||$90|
|Selling old iPhone||One-time gain of $150||$150|
|Curbing impulse buys||$40||$120|
|Additional income streams||$100||$300|
When you break it down step by step, saving $1,000 becomes a more attainable goal. Whether you’re saving for a specific event or just want to bolster your financial security, taking on a few different strategies can help get you there faster than you might think.
Make sure you’re storing your savings in an interest-bearing account with a high yielding APY, such as a CD, money market account or high-yield savings account, and understand how you can avoid paying unnecessary fees on the account.