Why You Should Save $10k (and how to start right now)

“I want to have $100k in the bank. Then I’m going to make some serious moves.”

A friend wanted to discuss big moves only. The truth is that most people want 6-pack abs or they want to have six figures in the bank. They don’t want to talk about finding more time to exercise or putting aside $20/weekly. They just want the results.

I get it. It’s exciting to talk about instantly getting rich or jacked. Nobody wants to read an article about how to lose a few pounds or about how to save $100. We all want the big wins. I want to get you there. I just want you to start somewhere. I want you to start with $10k so that then you can focus on going after $100k.

They say that the imperfect plan you follow is better than the perfect plan that you’re never going to follow. This is 100% the case with me. I totally suck at money and fitness. I always struggled with working out, eating well, trying to save money, and all of that stuff.

I eventually figured out the power of starting slow and building powerful results over time by never relying on will-power.

This is why I had to write about getting started with money. Sometimes you just have to focus on the next step that’s going to bring you closer to your final destination. As much as you want to think about being a millionaire, it’s important to focus on actually getting started. We just looked at how to save $1k next month. Let’s move on to $10k in six months.

Why do you need to save 10k first?

To build momentum.

“I don’t feel like drinking or eating crap.”

I remember turning down an invitation for wings and beer. Normally I would’ve jumped on this opportunity but I said no because I was seeing excellent results from my new diet/training program. I didn’t want to throw it all away. I wanted to keep on going. It’s always tough to get the ball rolling.

With momentum on your side, anything is possible. Momentum is very powerful. You’re going to suddenly feel like things are actually working out for you. Ask anyone who has started paying off their debt or attempted growing a side hustle.

When you save $10k, you’re always going to want to keep on going. You’re going to see what’s possible when you actually stick to your goals.

We all need to see real results in order to feel some motivation.

When I first saw my bank account balance approaching $10,000, I was pretty excited. I couldn’t wait to open up my mobile banking app to see what my balance was at.

To get into the habit of saving money.

Personal finance is often about habits and choices.

You choose to spend money. You choose to create excuses to continually spend your money. You go out of your way to spend sometimes. You figure that you’re going to get into the habit of saving one day. That mythical one day never seems to appear.

To get to $10k in your bank account, you’re going to build some new habits.

For example…

When I got into money management, I suddenly became more interested in increasing my income. I remember spending the summer of 2005 immersed in finding ways to make more money. I wasn’t interested in wasting money or worrying about things that didn’t impact my life. By starting at an early age, I set myself up for success in the future. I went from being pretty lazy to trying to find multiple jobs at once.

You can start right now. It’s never too late to turn your finances around. If you start working on this habit today, I promise you that it’s going to pay off in the future.

To have a new baseline.

With $10k in the bank you’re not starting at zero. Being at zero or in the negatives isn’t fun. With a new baseline, you can start making some moves (plan that trip, invest in a business, or finally move out).

It’s cool to have $1k in the bank because you won’t have to stress about paying rent. It’s even cooler to have $10k because now you can start thinking about investments and getting ahead.

To create a better life for yourself.

You can’t expect life to magically get better. You have to make money and more importantly you have to save money. Otherwise everything remains the same.

Why will more money in the bank make life better?

• You’ll have options.
• You can plan your next move.
• You can figure out what works for you.
• You can start adding more fun stuff to your life be eliminating what you don’t need.
• You don’t have to stress about going out for dinner.

Imagine finally being able to afford that dream vacation or picking up the tab for the whole group?

To see how you can repeat the process… but faster!

You might notice that it takes you longer than you would like to get to that first $10k. That’s okay. All that matters is that you get there so that you understand the process. Now you’re going to know how to get there faster. You’re going to find ways to save more money and to increase your income so that you don’t have to wait so long to see money in your bank account.

When you look back in a year from now, you might even laugh at how easy it was to save that first $10,000 in your savings account. You’re going to be giving advice to all of your friends who want to get started.

So that you can stop wasting time.

When you have a goal you don’t have time to waste. You can’t stress about every government conspiracy or new cat video that pops up on your feed. You now know where you want to go.

It’s way too easy to get caught up in reading about complex ideas and looking into another motivational video on YouTube. You don’t know what to do so you waste time on things that don’t really matter.

To save $100k.

I eventually want you to have $100k.

You’re going to find ways to repeat the process of saving money, you’re going to stop wasting time, and you’re going to shift your focus to personal finance. Your next goal will be to eventually get to $20k, then $50k, and eventually $100k. I can tell you from personal experience that it’s a lot easier to sleep at night when you have over $100k in the bank.

I just wanted to open your eyes and remind you that it’s okay to start small. It’s actually recommended that you set realistic goals. When you hit your first realistic goal, you’re going to see that you can actually do this.

Check out the latest episode of Studenomics TV for more on eventually getting to six figures…

How do you save your first $10k?

You have to crawl before you can walk. The journey of a 1,000 miles begins with the first step. I’m sure there’s another totally cliché line that I can throw in here. You always have to start somewhere, though.

Set a goal.

Is your goal to save $12,000 or is it to pay off $14,000 of debt?

Set the goal so that you have a reason for saving money. None of us save money for the fun of it. We often spend money because we’re bored with no goals in mind.

What’s your goal? For example, how to pay off 10k in credit card debt? Or how to buy a new car? Then, review the budget and set the goal. Write it down and think about it daily.

Work ruthlessly towards your goal.

This is where you cut out the distractions to make your new goal a reality.

You won’t have time for the following when you’re working towards your goal:

• Waiting in line to get into a club.
• Stressing about a new conspiracy video.
• Arguing over every issue that pops up on your feed.

Do whatever it takes to work towards this new goal of yours.

Find a strategy for personal finance that works for you.

The thing is that there are thousands of articles online about money management. Every possible trick for saving money (cut your hair, never go on a date, live in a park, etc.) has been shared. Every possibly trick for making more money (fill out surveys, freelance, etc.) has also been shared. It’s up to you to find what works best.

If you want a quick recap, you can read up on our unique theories for saving money.

1. The Cancun Technique For Saving Money.
2. The Houdini System for saving money in the long run.
3. The YOLO System.

It’s up to you to decide how you’re going to build your savings account. Some people focus on extreme frugality while others try to make as much money as possible so that they don’t have to be frugal.

Here’s the exact breakdown of saving $10k…

1. Set a deadline. Have a clear completion date so that you can figure out how much you need to save monthly, weekly, and even daily.
2. Start putting away from your paycheck. Hide the money before you see it.
3. Cut something out. Cut things out of your spending to focus on your savings.
4. Forget about all of the useless stuff. Stop stressing about all of the stuff that doesn’t matter.
5. Focus on making more money. Keep on bringing in the money.
6. Keep on going until you get there. Keep your eye on the prize until you reach your goals.

The most important thing that you focus on for the six months is to increase your income. Here are some ways to make more money:

• Use social media to get paid.
• Become a writer.
• Drive for Uber.
• Drive for Lyft.
• Rent a room on Airbnb.
• Flip stuff.

I started off by putting aside $20/weekly. When I saw my bank account grow, I was motivated to suddenly take personal finance seriously for the first time in life. I got into saving serious money. I looked into part-time jobs. I started Studenomics. I wanted to do everything possible to get to the next level. You can’t start thinking about the next level if you’re not even in the game.

Good luck with seeing that first $10k in your bank account. Life gets more exciting when you have some money to play with.