Starting to improve our lifestyle, we usually choose concrete goals to complete for the first time. Some people need to buy accommodation, others consider financial independence as their point. Another important milestone is collecting the first 10 000$.
Living from paycheck to paycheck and using short term loans to survive another month, we treat such an aim as an impossible one. In fact, it is more simple than you think. Moreover, reaching this mark at your account, you’ll see how many opportunities are opened for further development.
See why you require 10 thousand dollars to begin a new life, and how to complete it in the shortest terms.
Why 10 000$ Is a Good Beginning?
Some people wonder why exactly this goal was chosen as a very first step. There are several reasons:
- Psychological mark
10 000$ is a decent sum, enough for surviving some time or making a large purchase. It sounds safe and serious for those who organize their financial life. However, unlike one billion dollars, it is an attainable number. You won’t be afraid of starting the way, because the goal is pretty close.
- Enough for a small emergency fund
An emergency fund is a sum you can spend in case of an unusual event - job loss or critical situation. 10 000$ would be enough for some period, so having it on your account is always a good idea
- First capital
The best way to increase your savings is by investing. You may buy stocks, use deposits in the band, or run a business. 10 000 dollars is enough to begin - surely, you should learn the basics of investing first.
How Long does it Take to Collect 10 000 Dollars?
The answer depends on your income and the ability to collect money. Some people have more objects of expenditure - cars or pets, so there is no concrete period. Depending on the terms you choose, the process can be more or less stressful:
- to collect 10 thousand dollars in 1 year, you’ll need to save 833$ each month. The possible, but difficult process.
- 2 year’s deadline requires 416$, which is not a big deal.
As you see, the term and difficulty depend on how much you can economize. Be realistic and decide which approach is easier for you.
Practical Tips on Saving Cash
1. Set the Deadline
The final term makes you more disciplined. Remember that your goal is a serious matter which determines your future.
2. Plan the Budget
The financial state depends on your routine actions - decisions you make every day may consume your money.
After each salary, decide how much you may spend on different spheres. Be strict to yourself and cut off wasting on unnecessary things.
3. Get Rid of Debts
There is nothing to say about fort capital until you owe to someone. Remember all of your debts and think about ways to return the cash. Only after that, you can save.
4. Track the Progress
See how much you can set now and regularly analyze why this happened. We usually spend more during the holiday season, while Autumn and Spring are good times to save extra-money.
5. Be Patient
You cannot put aside such a large sum at once. It is a process that requires discipline and self-reflection. Maintain the schedule and be kind to yourself. I’d you need some more time to complete the goal, it is not a big deal.
Even slow progress brings results. If you decided to save 10 000$, you should plan the process and keep all risks in mind. It is a good way to start a new life and increase your income with the help of investing.
Published by Alicia Sanders