Hey Bebes! Welcome back to Budgeting Backwards, the place where we turn financial stress into financial success, one step at a time.
Today, I want to share a major personal finance milestone with you: saving my first $10,000!
For years, $10k felt like a magical number. I struggled with saving for years. I would save $1,000 and then I would spend it. For years, $10k was a goal that seemed out of reach. But I finally did it, and trust me, the feeling of seeing that number in my savings account is incredible.
If you’re starting from scratch, or even struggling to save your first $1,000, I know how hard that is. So, here are the exact five steps I took to save my first $10,000.
Step 1: The “Why” is More Important Than the “How”
Before I even looked at my bank account, I got clear on why I was saving money. My $10k is labeled “F*ck You Fund”. It’s money that could cover unexpected emergencies, allow me to take a low-risk career leap, or simply buy me time if I ever lose my job (God forbid!).
- Actionable Tip: Don’t just save for “savings.” Give your $10k a name (e.g., The “New Car Down Payment Fund,” The “Six-Month Safety Net,” or The “Dream Vacation Kitty”). This emotional attachment makes it harder to spend and easier to prioritize.
Step 2: Automation is My Best Friend (and Yours)
Hands down, the single most effective thing I did was automate my savings right at the source: my paycheck. I treated my savings goal like a non-negotiable bill by making the money never even touch my primary checking account.
I calculated how much I could afford to save comfortably per month. Then, I set up my work’s direct deposit to split my paycheck: one portion goes to my main checking account for bills, and the automatic savings amount ($255) goes directly into a separate, high-yield savings account.
- Actionable Tip: Check with your employer’s HR or payroll system. If they offer split direct deposit, use it! Set the portion for your savings goal to go into a dedicated, separate account. Make the money leave before you ever see it in your spending account.
Step 3: I Found $100 in My Subscriptions
I went through every single monthly expense, specifically targeting subscriptions and services I wasn’t using. I downgraded my gym membership, negotiated a lower cable bill, and canceled Netflix so that I can share an account with my best friend.
- Actionable Tip: Do a full financial audit. Cancel or downgrade one thing today. Even $20 or $30 a month adds up to hundreds. That’s extra toward your $10k goal.
Step 4: The Power of the “The Micro Hustle”
While I don’t have time for a full second job, I looked for ways to earn small, extra chunks of cash that I could put toward my goal. I call them “Micro Hustles.” I resold gently used clothes ($200), I did simple one day free lance projects for an old coworker ($350), and I organized receipts for a former client ($150). 100% of this unexpected, extra money went straight to my F*ck You Fund.
- Actionable Tip: Look around your house. What can you sell this weekend? List it now and promise yourself that money goes directly into savings.
Step 5: I Paid Myself First
This is the budgeting backward mindset: instead of budgeting what’s left after all your expenses, you budget your savings first.
When I got a small raise at work, or received a tax refund, or even a gift, my initial instinct used to be to upgrade something (a better phone, a new outfit). This time, I made a conscious effort to Pay Myself First.
- Example: I got a $750 bonus. I immediately put $600 (80%) into my savings account and allowed myself $150 to spend on a small treat. This kept me motivated without derailing my goal.
- Actionable Tip: The next time you get a windfall (a bonus, a refund, a gift), save at least 70% of it before you allow yourself to spend any of it.
The Takeaway
Saving my first $10,000 wasn’t about a huge lottery win or a massive raise. It was the collective result of small, intentional choices and, most importantly, consistency (thanks, automation!).
If I can do it, you absolutely can too. Pick one of these steps today, start small, and I guarantee your savings will grow.
Now tell me, which of these 5 steps are you going to implement first? Let me know in the comments below!
