3 Ways to Save an Extra $1,000 Before the End of the Year
Here's how to squeeze out more savings before 2021 comes to a close.
Maybe you're not so happy with the state of your savings account. Or maybe you're hoping to travel in 2022 and need a little more money to make that happen. Either way, you may have your heart set on boosting your savings substantially before this year is up. Here's how to eke out an extra $1,000 in savings to meet that goal.
1. Send some money to savings automatically
If you give yourself access to less of your paycheck, you'll spend less of that money. And if you set up an automatic transfer over the next few months, you can send $250 a month from your checking account to your savings to meet that $1,000 goal. Doing so will remove the temptation to spend that money since you won't see it available in your checking account.
2. Stop dining out for a while
You may be surprised at how much money you spend going out to eat or ordering lunch most days vs. preparing your meals at home. Restaurants often charge customers three times the amount they spend to source their food. If you pay $30 for a meal at a restaurant, it means you probably could've prepared it for $10 at home -- maybe less, even, considering that restaurant portion sizes tend to be larger and some restaurants favor higher-end ingredients.
It pays to take a look at your recent credit card statements and see how much money you've been spending on prepared food. You may come to the realization that cutting out restaurant meals and takeout or delivery orders for a few months could leave you with an extra $1,000 in savings. And if you're a fan of morning coffee runs, you could consider eliminating them for a while too as that could work wonders for your savings.
3. Get a side job
Sending money into your savings account automatically only works if you can cover your essential bills without that cash. And while hitting the brakes on restaurant meals could result in some savings, you might also hate to cook. Or not dining out might seriously impede your quality of life.
In either scenario, there's a good solution -- get yourself a side hustle. If you earn extra money, you can go on spending your primary paycheck in its entirety and save your additional earnings. If you're not sure what type of side hustle is right for you, think about your personality, your schedule, and the type of working environment you tend to thrive in. Or take this quiz for added guidance.
Saving extra money could help you end 2021 on a high note. If you're eager to sock away an additional $1,000 by the time the year wraps up, know that it can be done. You may need to make some adjustments and sacrifices, but they're worth it to meet such an important goal.
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