Currently, in America, 58% of Americans have less than $1,000 in their savings account. This number is astounding and really not ok. One of the biggest things to remember in life if that unexpected things always come up and the last thing you want is to be totally blindsided by an emergency. When emergencies arise many people rely on credit cards to get them through. In the long run, people end up paying more money in interest and make it more difficult for themselves to get ahead. If you are finally ready to break the cycle and get an emergency fund saved, follow the next ___ steps to save $1,000 fast.
*This post contains affiliate links through which I may make a commission. All thoughts and opinions are my own.
Before we dive into how to save $1,000 fast, how about a quick reminder as to how beneficial it is to have.
Here are some common emergencies that cost an average of $1,000:
These reasons and so many more are why it is crucial for you to build an emergency fund and build it fast.
Depending on your current budgeting habits and earnings, how to save $1,000 fast will look a little different for everyone. However, if you follow the following steps you are guaranteed to find the extra money you need to start building a secure savings account.
The first place to start finding money is by looking at your spending for the last few months. Going through your budget will more often than not prove to lead to a lot of places where you are spending unnecessary money that could be used to save $1,000 fast.
Get a Budget Breakdown Printout to help you organize and visualize your spending. Now, get your bank statements ready and go through your spending for last month. Write down your spending in the following areas:
Once you have gone through and written down all your purchases in these areas, it’s time to add them all up for the grand total.
It’s safe to say that the amount spent in the Purchases Under $20 category could easily go toward an emergency fund next month.
While it is absolutely necessary to leave some money for fun in your life, chances are you probably went a little over-board. How much money could you set aside to budget for in the “fun” category next month?
A great rule when it comes to grocery expenses is to budget $125 per family member. So if you have a family of 5, this would give you $600 to put toward groceries each month. Need more help? See how our family of 5 spends $100 per week on groceries.
This is one major area most people start digging their heels in. They need their cable TV. My argument would be that you need an emergency fund. Especially if you have kids.
There are several practical ways that you can begin to reduce monthly bills that will help you save $1,000 fast. Here are some of the most common areas where families can start saving:
If you think you’re paying too much for a certain bill each month, why not shop around and see if there is a better discount or promotion that you’re not aware of. This could be at a different company or maybe even within your same company.
Doing the research for this could be a pain, that’s why there are companies like Trim that are willing to do the work for you. The Trim app will analyze your spending, look at your recurring monthly bills and then begin looking for areas where you might be paying too much. Trim will share potential discounts with you and even make all the necessary arrangements for you! Download the Trim app.
The average cell phone bill is currently hovering around $80 per month for one person. What if you could reduce that amount by over $50? There is a new phone company called Ting that works with a wide variety of phones and the average cost for one person is only $25 per month!
Ting works differently than most phone companies because they don’t lock you into a pre-made plan. With Ting, you get to choose your usage…which means you control how much you pay. Learn more about Ting.
Seriously. Cable. It’s expensive and soon to be a thing of the past. Have you ever considered switching to a digital antenna? Doing this could literally save you $1,000 on its own! The best part is, there are certain companies like Mohu, that allow you to get the entire house set up with digital antennas, so you get TV in every room.
This is a commonly overlooked area among pet owners. If you only have one cat and are spending around $6 per month on food, then you’re probably doing ok. However, if you have several pets that require a lot of food, litter, treats and/or other treatments, it might be worth it to consider signing up for Chewy.
Chewy is an online ordering system that saves you big money when it comes to ordering pet supplies. If your order totals $50, you also get free shipping. Considering the fact that the average person spends $126 per month on their pets, it might be worth it if you can reduce this major expense.
We’ve all heard that shopping without a plan is asking for trouble. Shopping while hungry is even bigger trouble. How can you avoid both of these?
Pay $5 for a meal plan and budgeted grocery list.
Make a list yourself and have someone else buy it so you’re not tempted to over-spend.
The $5 Meal Plan
The $5 Meal Plan was a genius idea created by a busy mother of 4. She has a huge variety of grocery and meal plans to fit your budget so you don’t have to do any of the planning! Learn more.
Personal grocery shopper
While there is an added expense to hiring a personal grocery shopper, if you are already over-spending in your grocery budget each month, it could be worth it! You can plan out your list ahead of time and get delivered ONLY what you need. Try Instacart or Shipt.
Another great way to start saving more money is to schedule savings just like you would schedule a bill. This doesn’t even have to be large amounts.
The first thing you want to do is find a savings account that pays you! After that set up recurring monthly payments for at least $100. There are accounts like the Savings Builder that will pay you 2.45% in compounding interest if you commit to only $100 per month! That’s huge!
Planning your savings just like it was a bill is a great idea because you are putting yourself first! Don’t give everyone else your money and then leave nothing for yourself. You work too hard for that.
It is easier than ever in this day and age to make extra cash whenever you need it. If you are determined to save $1,000 fast and/or pay off your debt, then sometimes a side hustle is the best way to get you there faster.
The best part is that there are so many side hustles these days that you can do from home and/or on your own schedule. That means if there is a day you can’t work, you just don’t. If you need to work around a full-time job’s schedule, you can.
Check out these flexible side hustles: