How to Save up first USD 10,000 in cash

Save up first USD 10,000 may look like Mount Everest at the glance, but as well know even Mt. Everest can be climbed but definitely the journey will be difficult to save the first USD 10,000.

Obviously, the journey for each of you to save the money will be totally different as there will be many x-factor which will impact your goal to save money. To start with, I will state few of them so that your about major aware about hurdles in path and to make you prepared:


  1. Urgent unavoidable expenses as always (as hard as you plan, this expenses will always come)
  2. Few desire products not the needy ones, you purchased (it’s human to buy desire product as well sometimes
  3. Call from friend/family/colleague for money (who else will help)

Moreover, it’s a fact that your income level as well greatly affect your saving habits and pattern. Therefore, in my article I have also bifurcated plans based on income level.

So, now let’s come next to the target months to save up first USD 10,000

Target months for the first USD 10,000 depends majorly on 3 x-factors; namely;


  1. Your Current Earning
  2. Your Possible Saving Ratio % for Goal
  3. Extra, lumpsum you can put

By now, you are clear that saving up USD 10,000 is difficult because of many uncertain factor but let me tell you few plan options in detail for saving unto USD 10,000

Plan for Saving First USD 10,000

I am assuming you are earning between USD 25,000 to $35,000 a year in the first 2 option:

Plan A – Elizabeth Warren’s Golden Rule of Personal Finance 50-30-20

Based on this rule, you will able to save maximum of USD 5,000 in a year; which means it will take 2 years for you to achieve the goal of saving up USD 10,000.


For most of us, this golden rule doesn’t work for many x-factor reasons we discussed above.

Plan B- Beat the Odds or Be the tortoise to your Goal

It works both ways, because this plan can’t be the same for all. You can either increase your saving ratio by 40% via reducing 10% cut from both need and want. Then, you can beat the odds and save USD 10,000 in 12 months or a year to say.



I am assuming you are earning between USD 50,000 – USD 60,000 a year:

Plan A- 2.5% of Monthly Income

If you are already filled with house EMI, credit card bills etc. Then probably, this could be the best option to save-up the first 10,000 in cash. This will only take-up 8 months for you to build up that cushion, you wanted to built for a long.

I understand it’s really tough with cheque to cheque lifestyle, we spent these days.

10% % of Monthly Income-

If you are really good in managing your money, this is the option for you to easily put the money aside in very very short span of time. 


It will only take 2 – 3 months to save-up the money.

Last but not least, work on your Habit

For any option to work, you need to believe that saving in itself is an education and keep learning a new skill to keep you on track to achieve the goal.

The major skill is to keep the habit of saving and reminding yourself why you are doing this.