I want to save an additional $5,000 in 2024. Here’s the plan:

One of my financial goals for 2024 is to save an additional $5,000. Specifically, I want to have $5,000 more in my brokerage account than I have in 2023. It’s a lot of money, but I hope to reach my financial goals and make the investment by the end of 2024.

Making a plan to invest that extra $5,000 is simple, and you’re pretty confident you’ll succeed. Here’s what I would do to find funding:

My plan to save an extra $5,000 in 2024 involves increasing my income by $5,000. Here’s why I chose this route instead of cutting back on spending:

If you break your $5,000 goal into smaller monthly goals, you’ll need to save $416.67 per month to reach your goal. Now, you could try to cut that amount out of your spending, but it would be really difficult. I don’t spend that much money eating out and that makes up a significant portion of my entertainment budget. There are also no car payments that can be eliminated, and fixed expenses like a mortgage that can’t be easily changed.

Basically, cutting back on your spending by $416.67 a month can be difficult and may involve changing a lifestyle you don’t like and may find difficult to maintain throughout the year. me could do Try to do that. But because you have to force yourself to do the right thing every month, you’re likely to fail.

It’s easier to earn an extra $416.67 per month by putting in extra hours at work than it is to do that. This is especially simple for me because I’m a freelancer and have more control over my workload. But in reality, it’s something that many people can do.

A side hustle earns you an average of $483 a month, so if you want to save $5,000 and boost your personal finances, you may want to pick up a side hustle. Or, if you make $20 an hour and can work a little overtime at work and earn time and a half, you’ll only need to work 13 extra hours each month. That means you only have to work 3 more hours a week. Hit the target.

Putting in a few more hours of work a month is much more sustainable than taking all the fun out of your life. And if you have a smaller goal than saving an extra $5,000 (such as saving an extra $1,000), you should scale back further.

You can also ask your boss about a promotion, try to negotiate a raise in your performance review, or find a better-paying job that will increase your income without putting in extra hours.

Can increasing your income help you achieve your financial goals?

The reality is that changing your spending habits long-term can be difficult. This is especially true if it involves ongoing small sacrifices. Finding ways to increase your income can be much more beneficial. This is especially true if you can do so by expanding your skills or negotiating a raise.

Once additional funds arrive in your bank account, route them toward your goals to ensure your efforts are helping you achieve the things that matter to you.

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