How to Pocket $5,000 in Savings in One Year

Saving money is rarely easy. Sure, you get paid, but once you factor in the costs of your housing, utilities, food and transportation, plus any extra for gym memberships, eating out, buying clothes or taking trips, it’s easy to forgo setting some cash aside in your savings account.

Luckily, there are a few easy ways to reevaluate your spending, and save up to $5,000 in just one year.

Skip the Latte

Even if you’re not a latte person, buying that cup of coffee on your way to work every morning adds up. Even if it’s just $2 or $3 a day, making coffee at home and pocketing that cash saves you between $14 and $21 every week. Over a year, that’s anywhere from $728 to $1,092 you can put in your savings.

Cancel Recurring Charges

Gather up your credit card statements for a full month and take a look at the charges. Chances are that you’ve got a couple of recurring payments that you forgot about or just don’t use. Do you really need that subscription to OK! Magazine? What about that membership to the fruit-of-the-month club you never use? Getting rid of these small things can save you anywhere from $25-$50 every month, meaning you can put away between $1,300 and $2,600 in a year.

Set up Automatic Transfers

Most banks these days have the option to transfer money online or via mobile app. If you have a savings account already, use the bank’s website to set up automatic transfers from your checking account. If you set aside a portion of each paycheck to automatically go into your savings, even if it’s just $50 from each bimonthly check, that adds up to $1,200 in a year.

Avoid ATM Charges

You know ATMs at a bank that isn’t your own are going to charge you an arm and a leg to take out cash. It’s crazy that so many people ignore these fees in favor of convenience, but they do. Avoid the ATM surcharges by waiting until you can get to a branch of your bank, or by using your bank’s mobile app to locate the nearest ATM. If the average fee is $4.35, you’re probably saving between $3 and $5 per week by sticking with your own bank. That adds up to savings of $156-$260 for the year.

Splurge a Little

It’s OK to splurge every so often, especially where your indulgences are concerned. Treat yourself to a full-priced spa day a couple of times per year. If you deny yourself small treats, you’re liable to become unhappy. Just make sure your extravagances stay small. Getting a facial regularly can cost up to $100 each time. To save money, explore some DIY options for facial masks and scrubs using ingredients you already have in your kitchen. You can save anywhere from $500 to $1,000 in a year, and pick up some new skills.