Are you looking to figure out how to save 2000 in one month? While this won't be the easiest challenge, it is possible! I'd first like to say, that this post requires you to have a steady income (either a W2 job or a strong freelance business). So, if you're unemployed, underemployed, or just barely getting by, now is not the time to save aggressively. With that said, check out my post on how to save $1000 in a month first, and then come back. Learning how to save 2000 in one month will require a lot of discipline, sacrifice, and effort but there's no doubt your bank account will thank you later.
I like to recommend these little money-saving sprints when you're saving for a near-term goal, like a vacation, saving for a home, or want to save a little extra cash in your account for exciting milestones like a baby or starting a small business.
For those who fit the criteria, in this post, we'll explore exactly how you can save $2,000 a month and keep your bills paid. Let's dig in!
Looking to save $2000 in just a month? You'll need all the help you can get. Try leveraging automatic savings apps like my favorite, Qapital. While it does cost a monthly subscription (I pay $3/mo), it helps me save more in a shorter period of time by rounding up when I use my card. I love it so much and it is the only money-saving app I use, year after year. Click here to try and get $25.
How to Save 2000 in a Month: 13 Methods
1. Create a Budget to Start Saving Money
First things first, creating a budget is essential whether you want to save $1,000 in a month or more. (Here's my guide on how to create a lasting budget that works.)
When it comes to budgeting, there are many different options that can suit your lifestyle and spending habits.
One of my favorites is a zero-based budget where your goal is to have zero dollars left over at the end of every month, but you might find another method that fits your habits better. Personally, I also use the 50-30-20 method to great success.
When creating a budget, you'll need to closely examine all of your income and expenses to get a better idea of how they work together. It's also important to break down your expenses into categories so you can see exactly where you're spending money each month.
The benefit of budgeting is that you can put a greater emphasis on things you love and reduce your budget on things you don't. For example, if you love new clothes – you can increase the amount of your clothes budget.
- Try writing down your income and expenses in a spreadsheet and see where you land at the end of the month.
- If you find that your expenses exceed your income, you'll need to reevaluate your spending habits and cut back on certain areas to save money.
- Budgeting takes time and a lot of practice, so don't expect to be successful if it's your first time. The key is to keep track of your budget and adjust it accordingly. It can be helpful to set aside time each month to examine your spending for the previous money and see where you can do better.
2. Set Savings Goals & Track Your Progress
Setting financial goals is critical, no matter what your goals are.
If your goal is saving money, how much do you want to save? How long do you have to reach them?
Without savings goals, it can be very difficult to stay on track and navigate your finances each month not knowing where you stand.
But just setting a savings goal isn't enough. You have to stick to it and track how you're progressing.
After a few weeks, take note of how your spending habits have changed. Have you done a better job of cutting out unnecessary expenses? Are there areas that you could do better?
Keeping track of your progress allows you to make changes that can help you stay motivated and on track.
3. Open a Separate Savings Account
If you don't have a dedicated high-yield savings account yet, this is your chance to open one! It isn't very helpful to learn how to save $2000 in one month if you can easily grab $600 of that for a night out. We want to save a full $2000 and not touch it.
While many people will rely on checking accounts to store their money, it can be easy to lose track of your money and see if you're really saving money.
Savings accounts are completely free to open and most of them will require around $100 to get started. As a bonus, some savings accounts pay lucrative interest rates on your money so you can make money by doing nothing each month. Additionally, some banks offer a nice sign-up bonus which is essentially free money that's worth exploring. (I famously used bank sign-up bonuses in my $8k in 90 day challenge, but it also works for fluffing up your savings, too!)
4. Automate Your Savings
Money can be stressful – so automating your finances as much as possible can be a huge relief.
If you want to save $2,000 in a month – aim to have money automatically transferred from your checking account into your savings account each week.
This would amount to a weekly deposit of $500 to reach your goal. But even if you can't reach that amount, it's still worth setting up your automatic transfers with a lower amount. (I also like the money app Qapital to help me with my micro savings goals and saving little bits of extra so I can more quickly meet my objectives.)
This can help you to realize how easy managing your money can be and help you become more confident about your money.
5. Cut Back on Utility Bills
In the summer and winter months, utility bills can stack up and end up costing you a fortune.
Between your electricity bill, water bill, and internet – these can cost you hundreds each month.
- While reducing your electric or gas bills can be challenging, there are a few ways you can save money on them such as adjusting your thermostat a few degrees each way depending on the current weather.
- For your water bill, you can install water-saving shower heads to reduce the flow of water to your shower.
Reducing your utility bills alone isn't going to save you $2,000 in a month alone, but combined with other savings tactics you can reach your goal much faster. The name of the game when saving up a large amount in a month isn't the big swings, but the “every little bit helps” approach.
6. Have a No-Spend Day to Save Money
Have you ever thought about how much money you spend on a daily basis?
Whether it's food, gas, groceries, or any other expense – we often overlook them.
By having a dedicated no-spend day (or a no-spend month, ha!) – you can easily save $50 or more in a single day just by being thoughtful about your spending.
Similar to having a no-spend day, you can also consider trying an envelope challenge to boost your savings.
7. Consider a Side Hustle
Let's be honest. The only real way to reach your savings goal of $2,000 in a month is to earn more than you normally do. This is where side hustles come into play.
Side hustles can be a fantastic way to make more money on the side in addition to your normal job.
Best of all, many of them can be done whenever you have free time, and you can work whenever you want.
Here are some great side hustles worth considering:
- Delivering food with Doordash or Uber Eats
- Driving for Uber or Lyft
- Work as a freelance writer
- Work as a virtual assistant
- Pet sitting
But starting a side gig isn't the only way to give your income a boost.
Outside of starting a side hustle, you can also make money by selling things around your home that you no longer need. This can be a great way to make cash fast, but it isn't sustainable. (Yes, I have a guide on how to declutter your home and make money doing it too. Check it out here!)
8. Avoid Lifestyle Creep to Save $2,000
Lifestyle creep can slowly eat into your monthly budget if you aren't careful about your spending.
While it's completely normal to spend more money as you make more money, this doesn't have to be the case. And if you stay within reasonable limits, it's not necessarily a bad thing.
However, if you want to reach your savings goals, avoiding lifestyle creep is vital.
Before upgrading your home or your car, think about how these expenses are going to affect your future savings. Or, you could try going car-free. No auto payment and insurance could easily get you 1/4 or 1/2 the way to that $2k per month goal.
9. Cancel any Unused Subscriptions
As subscriptions have become more and more popular over recent years, the amount of subscriptions that go completely unused has also risen.
Try to take a look at your bank statements and credit card bills to find any subscriptions that you're unaware you're still paying for and eliminate them. I'm constantly juggling my streaming services between which ones have the shows I want to watch.
While canceling your subscriptions might not save you a ton of money all at once, lifetime savings can really add up. Additionally, leveraging a VPN service with double the encryption can help you access regional pricing for digital subscriptions. This allows you to connect to servers in different regions, potentially unlocking lower subscription prices and saving you money in the long run.
10. Cut Back on Housing Costs
When you look at your overall monthly expenses, housing costs are often at the top. Whether you're renting an apartment or owning a home – this is most often someone's most expensive monthly bill.
If you want to get serious about your savings, reducing housing expenses can be one of the fastest, most effective ways to save money quickly. Unfortunately, this is often the most complex and difficult to adjust. And also, no one wants to give up their independence to live with mom and dad or a roommate.
If you want to build significant savings, however, this is probably the best way to do so.
To reach your savings goal, try to downsize your housing costs. Can you move a little further out of the city at a lower cost? Could you reduce the size of your home? Could you opt for a less modern home?
While moving is a massive decision for your family, it plays a big part in your financial plan so it's important to analyze it wisely.
11. Refinance Debt to Increase Your Savings Rate
Looking for an easy way to save money? Refinancing any high-interest debts can be a simple and effective way to reduce your monthly expenses.
- Here's how it works. Assume you have credit card debt that's amassed to $10,000 at an interest rate of 24%. This is extremely expensive and will cost a fortune.
- Instead of paying your credit card company a hefty amount each month in interest, consider taking out a personal loan for $10,000 at a lower interest rate. Even if your interest rate is 10% – this will help you save money automatically.
Another common example is with a mortgage or student loans.
If you have a mortgage that you've owned for a while, refinancing it can help to make your monthly payment more affordable.
Because you'll essentially be extending the life of your loan, this can help you save more money upfront, just keep in mind that it will ultimately cost you more in the long run.
Refinancing debt can be a great way to help you save money fast when you need it most, but be sure to consider the costs of refinancing and whether or not it makes sense for your situation.
12. Redeem Credit Card Rewards
Credit card rewards can add up over the months and depending on your spending, it could be a nice chunk of change. Redeeming these rewards can be an easy way to pad your savings without much effort.
13. Build an Emergency Fund
Emergencies are going to happen at some point, and if you don't have money set aside for them, they can break your finances into pieces.
If you don't have an emergency fund established already, try to save anywhere from 3 to 6 months of your normal monthly expenses for these times of unexpected expenses.
It's best to start by saving just $1,000 which can help you if you have unexpected expenses like a car repair or home maintenance issue. After you've reached $1,000 – then you should aim to build your savings so that you can survive a job loss for a few months.
14. Negotiate Bills to Save Money
Did you know that some bills can be negotiated?
For example, medical bills are some of the easiest bills you can negotiate for less so you can save money.
But it doesn't end there. You can also negotiate bills like:
- Internet services
- Cell phone bills
- Late fees on credit cards
15. Switch Insurance Providers
Insurance on your home and vehicles will cost you thousands each year.
To save $2,000 in a month – consider switching insurance providers to see how much you can save. This is especially useful if you've been with the same provider for a few years.
It's possible to save over 20% or more just by switching providers alone!
To further maximize your savings, you can consider adjusting the coverage your insurance provides, but be aware that this could make using your insurance more expensive.
16. Make Passive Income
If starting a side hustle isn't your cup of tea, you can try to make extra cash through passive income. There are tons of different ways to make passive income, and while some of them will require some cash to get started, others will just require time.
For example, one of the easiest ways to earn money passively is by investing – but if you don't have money to get started, you'll need to try another way.
Another option is to sell digital products online. This will require more time upfront to create your products and market them, but it doesn't cost any money to get started.
If you want to achieve financial freedom – passive income is key to long-term wealth.
17. Adjust Paycheck Withholdings
If you want to save $2,000 quickly, having your paycheck withholdings can be a simple way to get the cash you want – but it comes at a cost.
You can adjust your tax and retirement contributions out of your paycheck to artificially increase your income and make it a little easier to save $2,000 in a month.
But you need to remember, if you do adjust these withholdings, it might cost you in the long run. In terms of taxes, you'll still owe that money at the end of the year come tax season (and there could be some penalties depending on your situation) so consider this carefully.
For your retirement contributions, it's important to remember that all of the money you invest will compound exponentially and will play a huge role in the age you can retire. So if you're looking to retire early (or on time), it's important to keep these contributions going.
How to Save $2000 in a Year
Saving $2,000 in a year is a much easier goal to achieve, but you'll still need to create a plan to boost your monthly savings.
If you want to save $2,000 in a year, you'll need to save:
- $166.67 per month
- $38.46 per week
- $5.48 per day
Final Thoughts
While saving $2,000 in one month isn't going to be easy, it's possible if you set a plan and stick to it. You'll want to start by setting a savings plan and creating a budget for your finances. Then you can start reducing your daily expenses and start saving money.
If you can't cut your expenses enough, you'll want to focus on ways to make extra money. Saving money can only take you so far to reach your savings goals. For more how-to guides on saving money, check here for how to save $5000 in three months, or how to save $20,000 in a year.
