How to save 10k in a year

Saving £10,000 in a year is a challenge but with a bit of planning, budgeting and a savvy savings account to boot, it can be achieved.

Key takeaways:

  • create a budget and timescale that works for your finances
  • stay motivated in the long-term with an end goal
  • pick the right savings account to help boost your earnings.

Saving 10k in a year

You could do a lot with £10k, from changing your car, to tying the knot and upgrading your kitchen. It would also make a very good rainy day fund, for those curve balls life throws at us. Even if you don't have something specific in mind, we could all do with a bit of extra cash in our bank accounts. It can help us feel prepared for the unexpected. But, saving money is not always easy, especially a target like £10k. That’s why it can be useful to use saving tips and tools to help you reach your goal.

Setting a 10k savings goal

Saving £10k takes planning and a bit of self-discipline, as well as being realistic with what’s possible.

 

Is saving £10k feasible in 12 months? Could you even do it in 6? Or do you need longer than a year? That’s what you first need to work out. For example, to save £10,000 in 6 months you’d need to put away around £1,666 per month. To do it in 12 months, you’d need to save around £833 each month.

 

Once you’ve worked out what you can save, you’ll have a clear target to work towards – with milestones to hit each month.

 

Remember that it has to work for you and your budget.

Creating a budget and savings plan

Budgeting is what's really going to get you going on your £10k in a year challenge. By working out how your month looks financially, you’ll know exactly what you can save and how long it’ll take you to reach your target.

1. Calculate your monthly income

Calculate how much money is coming into your household each month. Review much you (or you and your partner) earn each month from work, pensions, dividends, interest etc.

2. Work out your monthly outgoings

Then, look at how much you spend each month. Factor in everything from your mortgage/rent and bills, to TV subscriptions, takeaways and clothes.

3. Split into needs and wants

Looking at your outgoings, separate which costs are essential, e.g. Needs (rent, bills, groceries) and which costs are non-essential, e.g. Wants (takeaways, clothes, shoes). This might be quite eye-opening.

4. Work out what's left over

Now you’ve crunched the numbers, you should be left with a figure that you could potentially save each month. Give or take a little for those unusual or unexpected monthly expenses, such as annual bills or birthdays. If this isn't as much as you expected, go back to your Wants and see if there are any further cut backs you could make.

Choosing the best savings account for £10k

Picking the right savings account can impact how quickly your savings grow - after all, saving 10k should be rewarded!

 

You should consider if you need easy access, how long you can realistically lock your money away for, and how much you can save.

 

We offer a range of different savings accounts, each with their own rates and terms.

Compare savings accounts

Tips for cutting expenses & boosting your savings

Look around for deals

You should always shop around when things like your energy or internet contracts come to an end. It’s the same with insurances for your car or home, as renewal prices are not always the cheapest. A little bit of effort can save you a small fortune.

Shop second-hand

Even if you’ve cut back on buying clothes and shoes, some items will still need replacing eventually. But instead of buying new, you could save money (and the planet) by shopping on second-hand sites. If not, could you wait for the next seasonal sale to bag a bargain? Selling your unwanted items on resale apps or local car boot sales can also be a big help. Who knows how much cash you have sitting at the back of your wardrobe, under your bed and in your garage. 

Review subscriptions

Regularly check your subscriptions. They can mount up so easily and be totally forgotten about, whether that’s numerous TV streaming services or magazines memberships. If you’re not using it anymore, cancel it. You can always resubscribe if you miss it.

Automate your savings

Other ways to help you save £10k in a year include automating your savings each month, so you’re not tempted to spend it. This can be easily done with a standing order to your savings accounts shortly after payday.

Staying motivated

The key to staying motivated is by keeping your eye on the prize with a goal. Is it to feel more financially secure? Get some new wheels? Or marry your best friend? Whenever saving feels extra hard or you’re tempted to splurge, just imagine doing the thing you’re saving for.

 

Also, celebrate the small wins on the way. Hit your first £1,000? Cheers to that. Reach the hallway point? Well done, you deserve a little treat. Haven’t dipped into your savings this month? High-five. Those little cheers for yourself will spur you to save on.

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