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With an unpredictable stock market and stubborn inflation, having a well-funded savings account is one of the best moves you can make for your finances.
What that looks like could be different for everyone. But a common goal for those just getting started is reaching $10,000 in savings — a significant achievement, but not so large that it feels unattainable. A $10,000 savings fund goes a long way toward goals like saving for a big vacation, a down payment, or a rainy day fund.
But when it gets down to the nitty-gritty, how do you save $10,000? And what if you wanted to do so in one year?
Breaking down a $10,000 savings goal
As the saying goes, “The only way to eat an elephant is one bite at a time.”
Whether your savings goal is $1,000 or $10,000, you’ve got to take it one dollar at a time. You do that by breaking it down into smaller chunks.
For instance, instead of thinking about saving $10,000 in a year, try focusing on saving $27.40 per day.
If you break this down into savings per day, week, and month, here’s what you’re looking at in terms of numbers:
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Per day: $27
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Per week: $192
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Per month: $833
Keep in mind that those numbers could slightly change depending on the number of days and weeks in the month.
What’s the ‘why’ behind your savings?
If you want to save $10,000 but don’t have a purpose behind it, you’re unlikely to succeed.
Your purpose will be what drives you on those days when you just want to scrap it all and go on a shopping binge.
So, what’s your purpose? Some examples might be:
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Build an emergency fund
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Save for a down payment on a house
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Jumpstart your kid’s college funds
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Improve your overall financial well-being
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Save for a bucket list vacation
You get the idea. The bottom line is that a $10,000 savings fund isn’t something you can knock out in a short amount of time. Having a purpose, with some determination behind it, will help you get there.
How to save $10,000 in a year
Let’s get down to the practical. Here are some ways you can really put together $10,000 in savings by the end of the year.
1. Evaluate your income and monthly expenses
Before you can get started, you need to know your baseline. And how much you make in a year combined with how much you spend is just that.
First, you need to make sure $10,000 is a reasonable amount. If that’s a third of your yearly income, you might want to readjust — maybe $5,000 is a better goal.
Next is making sure you know everything that’s coming in and out of your checking account. That’s your income (and your partner’s if you’re part of a couple) and every expense you incur monthly, quarterly, and annually.
Record all the fixed expenses in your monthly budget . That’s things like rent or mortgage payment, car payment and health, home, and car insurance costs. For variable expenses — those that may change monthly, like dining out, power bill and so on — read over your bank and credit card statements to get a monthly average. If you’re spending $300 a month dining out, for example, then that’s an area where you could potentially cut back.
Read more: Fixed vs. variable expenses: Key differences and how to budget for each
Once you have a clear picture of what’s going in and coming out of your bank account, you can proceed to the next step.
2. Make a budget
You’ve got all the information you need. It’s time to make the game plan.
One of the easier-to-follow budgets is a zero-based budget . With this system, you take your income minus your expenses to equal zero every month. It means every penny you earn should be allocated to a category in your budget (including savings).
You should have predetermined how much you plan on spending at the grocery store for the month, how much you’ll spend on entertainment options, how much you put toward gas and transportation, and so on.
Once you’ve covered all your necessary expenses, you can start putting extra money toward savings. And that’s where you’ll notice how much momentum you can gain by cutting back spending in certain areas to reallocate that money toward your $10,000 goal.
3. Identify where to cut back
Here’s where the hard part kicks in. Since it can be impossible to trim your biggest expenses, since they tend to be necessities like rent, you might have to nip around the edges.
Is it time to part ways with that gym membership you’ve only used once in the last six months? Maybe you can let go of one of your multiple streaming service subscriptions or switch to a cheaper cell phone plan. You could try going out once a week for dinner instead of twice, or resolve to place fewer Amazon orders. These are the temporary sacrifices you’ll need to make to push your income away from expenses and into savings.
As you’re reviewing your expenses, really think about what is a “want” and what is a “need.” The power bill and the rent payments are needs. Dining out two to three times a week is a want.
4. Step up your income
Just like you’ll need to cut back in certain areas, you also might need to step it up in certain areas. Adding to your income is just another temporary sacrifice you can make while trying to save money .
You may consider a side gig as a rideshare driver with Uber or Lyft, or take a part-time job on evenings or weekends. Maybe you have a hobby you’ve wanted to monetize — now is the time!
Another option is exploring passive income opportunities. For example, if you travel a lot, consider renting out your home occasionally. Get creative and think about a few ways you can make a little extra money to supplement your usual income. Remember, this doesn't have to be forever.
5. Decide where to put the money
Deciding where to put the $10,000 you’re working so hard to save will depend largely on what you plan to do with the money.
If you’re trying to build up your reserve funds or save for a specific goal, the money should be easy to access, but not necessarily an account you’ll use to manage everyday transactions .
Good savings account options include:
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High-yield savings account (HYSA) :These accounts pay much better interest than typical savings accounts. As of June 2025, some of the best HYSAs offer interest rates upwards of 4% APY . They also typically don’t have restrictions, like monthly fees or high minimum balances, but they also don’t usually come with debit or ATM cards .
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Money market account (MMA) :MMAs work similarly to HYSAs in that they provide a solid home for savings that is available without penalty when needed, but isn’t for day-to-day use. Money market account interest rates are also comparable to HYSAs, but may require a higher minimum balance and limit your monthly transactions.
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Certificate of deposit (CD) :A CD is a type of savings vehicle that earns a fixed interest rate over a set period of time — typically between three months and five years. They’re different from a savings account because the money can’t be accessed until the account matures. But the best CDs also usually have higher interest rates than savings accounts.
Compare your options at different banks and choose the account that makes the most sense for you and your savings goals.
6. Automate your savings
Once you’ve developed your plan, one of the best ways to build your savings is to automate your contributions — whether weekly, bi-weekly, or monthly — and let it work for you in the background while you carry on with your other financial goals.
Just remember the dates you set up and the frequency. Automatic means automatic. So if $500 comes out on the 15th of every month, don’t be surprised when that $500 has been moved over to your savings. Leave yourself enough money to cover your expenses every month.
Read more: 3 smart things to do when your savings account hits $10,000
