3 Steps to Increase Your Savings by $10,000 in 2024

It’s common to set lofty savings goals ahead of the new year. And according to research from The Ascent, Americans have some pretty big goals for 2024.

16% decided to save for an important milestone, such as buying a home. And 8% said they want 2024 to be the year they build an emergency fund.

But your goal might be to end 2024 with an extra $10,000 in your savings account. And obviously it will take some effort. But here’s how you can do it.

Step 1: Put your entire raise on autopilot

Ideally, you’ll get a salary increase in January, either due to outstanding work performance in 2023 or due to general cost-of-living increases across the company. If you want to reach a huge savings goal, the best way to start is to save your entire raise in the bank. Since it is unfamiliar money, it is better to throw it away.

Now it’s best to wait until you get your first paycheck in 2024 before setting up automatic transfers. But let’s say your first paycheck arrives and it’s $142 higher than your previous paycheck. This is the amount you want to have set aside for savings each payday from your checking account. But it’s a good idea to set up a transfer before you get used to the extra money.

Step 2: Big savings

Canceling your streaming service and ordering one less takeout meal a month isn’t going to save you $10,000 in a year. Achieving those goals may require a big change in your monthly spending. So make sure you have any big expenses that you can reasonably cut to make this happen.

It may not be possible to find a cheaper home where you live and work. However, it may be possible to find a roommate. If you’re paying $1,600 a month in rent right now, you could potentially save $800 a month.

Another option is to see if you can do without your car and unload it. AAA says owning a vehicle costs an average of just over $1,015 per month. If you only need the car to work from home, run errands, or attend certain social events, crunch the numbers.

Let’s say that to manage without your own car, you’d have to take Uber 10 times a month at a cost of $30 per ride. Well, that’s $300 a month, not $1,015.

Of course, owning a car may not cost anything you $1,015 per month, especially if paid in full. But it might be a good idea to see if you can ditch the car and save money by relying on a combination of Uber, a friend’s ride, and your own two feet.

Step 3: Embrace the gig economy

Just as the money you get in the form of a raise isn’t money earmarked for existing bills, the money you earn from a side hustle can also save you. Explore your options for a side hustle in the new year, and keep in mind that the career you pursue should be one that fits your schedule.

Let’s say you work long hours at your day job. Waiting on line at a local restaurant three days a week may not be possible if you typically arrive late to the office. In that case, you may be better off doing something you can do at your own pace, such as entering data from home.

It may be easier to work a side job only once a month on one weekend rather than working the whole month. In that case, you might find weekend gigs like working in a catering hall or house sitting.

Increasing your savings by $10,000 will put you in a much stronger financial position by the end of 2024. And if you keep following these steps, you’ll find that surprisingly, you can achieve your goals.

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