For many people, figuring out how to save $5,000 in 6 months can seem like a daunting task. Most people simply don’t have that kind of money in their budget to save.Â
Here’s the interesting thing though. While saving $5,000 in 6 months isn’t an easy task, it’s also not that difficult of a task either. I’m thoroughly convinced that most people reading this can do it (indeed, if you’re reading a post like this, you’re probably already doing more than most people).
Saving $5,000 in 6 months might not seem like that much, but it can be a life-changing amount of money. To be sure, $5,000 by itself probably isn’t going to change your life. But if you start early enough, stay consistent, and let time and compound interest work for you, your future can look very different.
It’s hard to understand how much $5,000 can become until you do the math and see the numbers. For example, if you save $5,000 each year for 30 years, you’d end up with $500,000 (assuming a 7% rate of return). If you could do this for 40 years, you’d end up with over a million dollars.
That means if you’re reading this and are pretty young, you can become a millionaire with just $5,000 a year (do this from age 22 to age 62, for example). That’s the power of time, consistency, and patience. If you combine all of these three traits, you almost can’t lose. Â
Since we now know just how valuable $5,000 can be, let’s take a look at what you need to do to save $5,000 in 6 months.
How To Save $5,000 In 6 Months
If you want to save $5,000 in 6 months, you basically have two options. The first (and what most people try to do) is to save your way to $5,000. To do this, you need to monitor what you spend and figure out what you can cut from your budget. What’s leftover is yours to save.Â
Saving your way to $5,000 isn’t a bad thing to do. Indeed, probably the most important principle of personal finance is to spend less than you earn. It’s a necessity if you ever want to achieve financial freedom.Â
But budgeting and saving isn’t much fun either. And the problem with constantly finding things to cut in our budget is that it can’t scale. There’s only so much you can really leave out.Â
I also think this constant emphasis on finding things to cut in our budget gives money a negative connotation – something that I’m not a fan of. It makes money into something that limits us. Money becomes about depriving ourselves and limiting what we can do, rather than figuring out how money can be used for us.
So while saving your way to $5,000 in 6 months is by no means a bad thing to do, I prefer the second option – earning my way to $5,000. Instead of figuring out how to cut your budget by $5,000, why not figure out how you can earn an extra $5,000. When you think about it, there’s a limit to how much you can save, but there’s no limit to what you can earn, especially if you’re willing to hustle.
Breaking Down What It Takes To Save $5,000 In 6 Months
It can be daunting when you have a big number to reach, but the great thing about earning and saving money is that you don’t have to do it all at once. Instead, you can break things down into smaller, more manageable chunks.Â
Saving $5,000 might seem like a lot. But consider what it takes to save $5,000 in 6 months. To do that, you need to do the following:Â
- Save $833 per month; or
- Save $192 per week; or
- Save $27 per day.
That’s all it takes. That isn’t to say it’s easy. But it is doable.Â
Even saving $833 in a month might seem difficult. I agree with you there too, so why not break things down more. Saving $192 in a week seems more in reach. Saving $27 in a day seems even more manageable. Make things smaller and suddenly large numbers seem much more in reach.
It’s Easier To Earn Than It Is To SaveÂ
One thing I recommend is rather than thinking in terms of what you can do to save more money, think instead in terms of what you can do to earn more money.
You can cut back on some things and find more money in your budget. But cutting back on the things you have isn’t pleasant and it isn’t easy. And, unless you have a huge amount you spend on something each month, it’s not easy to find big sums in your budget. Many of us don’t have $27 per day in our budgets that we can easily cut.
When you flip it around though and think in terms of what you need to earn each day, the equation changes. It can be difficult (or near impossible) to cut $27 per day from your budget. But almost anyone these days can do something to earn $27 in a day.
The fact is, for most of us, it’s simply easier to earn more money than it is to save it.Â
Some Things You Can Do To Save $5,000 In 6 Months
So what can you do to save $5,000 in 6 months? If you’ve ever read this blog, you know that I’m going to tell you to pick up a side hustle, specifically looking at the gig economy since it’s flexible and gives you a way to earn money fast and consistently.Â
Think about some of the things you can do to reach that $27 per day of extra income. It doesn’t take much.
- You can deliver food with your bike (or ebike) with DoorDash, Uber Eats, and Grubhub. If you work 1 hour per day during the lunch or dinner rush, you can easily earn $27 or more, especially if you play it smart and multi-app. I regularly earn $30 or more per hour by only doing deliveries during peak hours.Â
- If you’re in a city that lets you charge electric scooters, you can earn $25 to $30 in a night charging 5 or 6 scooters. In the early days of Bird and Lime, I was easily able to hit this mark by grabbing a few scooters each night around my house. Unfortunately, a lot of scooter companies have moved towards an employee model, so earning money charging scooters isn’t as good as it used to be.
- Dog sit or walk dogs on Rover or Wag and earn $25 to $30 per day. The nice thing about dog sitting, in particular, is that it can almost be a passive activity. If you already have a dog, your schedule barely has to change.Â
There are a lot of other things you can do to earn extra income – and you don’t have to do each side hustle by itself either. Indeed, the best thing you can do is to combine your various side hustles in a way that best fits your life (I call it monetizing your life). Back when I had a regular, full-time job, I used to walk dogs during my lunch hour, deliver food on my way home from work, and charge scooters in the evening before I went to bed.Â
Find what works best for you. I’ve tracked my side hustle earnings for years in my monthly side hustle reports. Check those out and see if you get any ideas from there that can work for you.Â
And side hustling isn’t the only way to earn extra income either. You can earn a significant amount of money each year by taking advantage of bank account bonuses. Indeed, in most years, my wife and I earn $10,000 or more in bank account bonuses between the two of us. If you want to learn more about bank account bonuses and how they work, check out my post, The Ultimate Guide to Bank Account Bonuses.
The main takeaway here is that earning $27 per day can be a life-changing amount if you try to do it. In 6 months, you’ll hit your $5,000 savings goal. And it really isn’t that difficult if you think about what you need to do to earn $27 per day, $192 in a week, or $833 in a month.
Final ThoughtsÂ
If you want to save $5,000 in 6 months, you can do it. It’s not going to happen by accident though – you need to take action to get there.Â
Consider approaching saving money from both angles. Figure out how if there’s anything you can cut from your budget. You might find there’s some category you spend money on that you don’t really need to spend as much as you do.
Try to automate your savings too. I’ve been writing about money for years and one thing I’ve learned is that saving money isn’t about self-control. It’s about getting the money out of your hands before you can spend it. So set up a separate bank account and save the money away.Â
Then, figure out what you can do to earn more money. It doesn’t take much – just $27 per day is enough to get you there. Most people can earn that much in an hour by taking advantage of the various gig economy apps out there (you can check out a full list of all the gig economy apps I use here). If you have other strategies or skills you can use to earn more, implement those.Â
You can do it!Â
More Recommended Ebike/Scooters
Check out these other ebikes/scooters I've had the chance to do a review for:
- GEN3 Outcross Bike – The GEN3 Outcross is a solid, affordable fat tire ebike that does a good job of doing what I need it to do. It works great for city riding, giving me a smooth ride in all conditions. It’s works really well as a winter ebike since the fat tires give it good traction over snow and ice. Check out my GEN3 Outcross Review.
- Himiway Escape Bike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
- Espin Sport Bike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
- Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
- Fucare H3 Scooter – The Fucare H3 is a fun scooter and I’ve enjoyed testing it out. For a daily commuter or quick trips or errands, the Fucare H3 is probably the scooter I’ll use. It’s portable and easy to maneuver, so it’s just easier to take on the road when I need it. Check out my Fucare H3 Scooter Review.
More Recommended Investing App Bonuses
For additional investing app bonuses, be sure to check out the ones below:
- M1 Finance ($100) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
- SoFi Invest ($25) – SoFi Invest is an easy brokerage account bonus that you can earn with just a few minutes of work. Use my SoFi Invest referral link, fund your SoFi Invest brokerage account with $100 and you’ll get $25 of free stock. I also have a step-by-step guide for the SoFi Invest referral bonus.
- Moomoo (5 free stocks) – Moomoo is a free investing app currently offering 5 free stocks (usually worth around $75-$100) if you open an account using a referral link and deposit $2,000. Read my Moomoo referral bonus guide for more information.
- Webull (5 free stocks) – Webull also gives you 5 free stock valued between $3-$3,000 each if you open an account using my referral link. Here’s a guide I wrote about how to earn your free stocks using Webull.
- Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
- Public (1 free stock) - Public gives you a free stock valued between $3-$70 if you open an account using my referral link.
More Recommended Bank Account Bonuses
If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.
- Chime ($100) - Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
- US Bank Business ($500) – This offer is limited to customers in the following states: AZ, AR, CA, CO, ID, IL, IN, IA, KS, KY, MN, MO, MT, NE, NV, NM, NC, ND, OH, OR, SD, TN, UT, WA, WI, WY. This is a fairly easy bank bonus to earn, since there are no direct deposit requirements. In addition, you can open the Silver Business Checking account, which comes with no monthly fees. Check out how to earn this big bonus here.
- SoFi Money ($275) – SoFi Money is a free checking account from SoFi. They’re currently offering a $25 referral bonus if you open a SoFi account with a referral link and deposit $10. You can also make an additional $250 as well if you complete a direct deposit. This is a good bank that is also 100% free, so you won’t have to worry about managing this account. Here’s a post I wrote with instructions on how to earn your SoFi Money bonus: SoFi Money Referral Bonus: Step By Step Guide.
- Fairwinds Credit Union ($100) – Fairwinds Credit Union is offering a referral bonus for users that sign up using a referral link. Fairwinds has no fees or minimum balance, so this is a particularly easy bonus to earn. Since this is a smaller credit union, my gut instinct tells me this offer won’t be around long, so if you’re in a position to meet the bonus requirements, grab this bonus before it’s gone. Here is my step-by-step guide on how to earn your Fairwinds Credit Union bonus.
- Upgrade ($50) – Upgrade is a free checking account that’s currently offering a $50 referral bonus if you open an account and complete three debit card transactions. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Importantly, this bonus says that it’s now scheduled to end on April 15, 2023. As long as you get your account opened before April 15th, you should be eligible. Here’s a post I wrote with more details: Upgrade $50 Referral Bonus – Step By Step Directions.
- Current ($50) – Current is a free fintech bank that’s offering new users a $50 referral bonus after signing up for an account using a referral link.Current is an easy bonus to earn and also gives you access to three savings accounts that pay you 4% interest on up to $2,000. That means you can put away up to $6,000 earning 4% interest. That’s very good and makes Current an account I recommend to everyone. Check out my step-by-step guide on how to earn your Current Bank bonus.
- Digital Federal Credit Union ($20) – Digital Federal Credit Union (DCU) is a free, nationwide credit union that I recommend to readers for two reasons. First, DCU has a $20 referral bonus if you open a free DCU checking account with a referral link. Second, DCU has a saving account that gives you 6.17% interest on your first $1,000. Check out my in-depth post on how to set this account up.
- Netspend ($20 + 5% Interest Savings Account) – Netspend is a company that provides 5% interest savings accounts. If you sign up using my referral link, you’ll get a $20 signup bonus once you make your first deposit into your Netspend account of $40 or more. That means you get a 5% interest savings account and a free $20 to start! Make sure to check out my in-depth guide on how to set up these accounts.
- Novo Bank ($40) - Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. In addition to being a good bank bonus, Novo is also a good business checking account. It has no monthly fees or minimum balance requirements and operates a good app and website. Indeed, it’s the business checking account I currently use for this blog. Check out my post on how to easily open a Novo account.
- Varo ($30) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $30 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.
Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.
Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.
Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:
- SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $250 if you complete a direct deposit.
- US Bank Business. US Bank is currently offering new business customers a $500 signup bonus after opening a new account and meeting certain requirements.
- M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account.
- DCU. Digital Federal Credit Union (DCU) is a free, nationwide credit union that I recommend to readers for two reasons. First, DCU has a $20 referral bonus if you open a free DCU checking account with a referral link. Second, DCU has a savings account that gives you 6.17% interest on your first $1,000.
- Personal Capital. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.
Feel free to send Kevin a message here.
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