Saving money is an important aspect of our life. I thought it could be helpful if I shared how my husband and I accomplished a financial goal of saving $20,000 in 12 months.
My husband and I have always been pretty good with money. While we do live comfortably, we also live well below our means.
We believe that with money comes financial freedom, which is why saving is so important to us.
At one point, we decided to up our savings game in order to reach a specific financial goal quickly.
We managed to save a total of $20,000 within 12 months. During this time, my income was lower, so I was amazed that we were able to pull it off.
Here's how we did it:
How to Save 20,000 in 12 Months or Less
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1. We Paid Off Our Cars
Before we began saving, we decided to pay off both of our cars. We still had about a year and a half left before they would have been paid in full.
I was hesitant to do this at first, but my husband convinced me that it would be worth it, and it was.
Not only did we get rid of two monthly expenses, but we saved money in the end because we no longer had to pay interest on top of the monthly principal.
2. We Cut The Cord on Cable TV
I'm not sure why we didn't do this sooner. We were paying over $100 a month for a service we barely even used.
Deciding to get rid of cable was an easy one for us. Whenever we watched tv, it was either via Netflix or our movie collection. We hardly ever watched cable tv.
By cutting the cord on cable tv, we were able to save an additional $100+ dollars a month.
3. We Cancelled Monthly Subscription Services
I was subscribed to two monthly subscription boxes totaling $80 per month. We were also subscribed to Hulu. Canceling these services saved us close to $100 extra dollars per month.
4. We Prepared Our Own Breakfast and Lunch
I work from home, so it's always been easy for me to eat at home. My husband works outside the home, so I made sure that he never had to purchase his breakfast or lunch by preparing them at home ahead of time.
For his breakfast, I would prep his meals for three days at a time. It's also really helpful to make enough dinner so that leftovers can be eaten for lunch the next day.
5. We Stopped Dining Out
In addition to preparing our breakfast and lunch at home, we never went out to eat. When I say never, I mean never.
No fast food. No Starbucks. No dinner dates (outside the home).
I went grocery shopping once per week, and what I purchased during that trip was the only thing we ate for that week.
This was something I really enjoyed because we began eating better.
6. Free Date Nights Only
Along with not going out to eat, we didn't spend money on date nights either. If we wanted to do something that wasn't free, we didn't do it.
You'd be surprised how much fun you can have without spending a penny.
7. We Only Purchased The Necessities
If it wasn't a bill or other necessities, we didn't spend money on it. We completely cut out all frivolous spending, and only purchased the things we needed.
8. We Saved Any Extra Income
Anytime we received extra income, it went straight into our savings account. For example, at one point we received a refund for an overpayment of our property tax.
When stuff like that happened, we were more than happy to save it because it brought us one step closer to our goal.
By doing all of these things, we were able to save $20,000 in 12 months.
If you're reading this and thinking it can't be done, I'm here to tell you it can be. Through goal-setting, discipline and dedication, we were able to make it happen. You can too.