By micahel vivar
It's the view of many American economists that living above the poverty line means being able to put together $10,000 USD within two weeks in case of emergencies.
One way to prevent any feelings of desperation in those situations and generally have peace of mind is to have that amount on hand.
This may seem like a hopeless task with wage stagnation not keeping up with inflation. It's difficult but not impossible. Here are eight tips for saving $10,000 in a year.
Don't think about "$10,000." It's a discouraging round number. Think about $125 a week. Even more manageable is thinking in increments of $16 a day.
When receiving a paycheck, automatically perform a small percentage mental deduction on income. Even 3% might be enough to slowly accumulate an annual nest egg.
This is a good option if a few thousand dollars are already available. At accrual rates of between .5% and .57%, hundreds of dollars can return every few months.
An exorbitant amount of money is spent dining out. Even cutting fast food and preparing healthy meals can go far getting to the $16 a day savings goal.
Consider a slower internet connection. An ultra-high-speed line may not be necessary without streaming subscriptions that are only used sporadically and can be canceled.
Gently used designer clothing can be bought at high-end secondhand shops. Brand name groceries usually have generic counterparts that are of the same quality but cost less.
A major household expense is fueling and maintaining a car. If living in an area where it's feasible, walk instead of driving. A mile on foot takes less time and effort than most think.
Think of each increment saved as a goal in a video game or sports match. This way, every time a boss battle or playoff game is won, you get that endorphin hit.
"Do not save what is left after spending, but spend what is left after saving" - Warren Buffett, CEO of Berkshire Hathaway and Philanthropist