How to Save $1000 Dollars in 5 Easy Steps

how to save 1000 dollars

Do you often catch yourself thinking that you’d like to save money – and then telling yourself it’s too hard to do?

Maybe you’re thinking, “It’s easy for others to save money! They make so much more than me, and have fewer financial commitments!”

In reality, I believe that anyone can save $1,000 – if they put their mind to it. There are so many ways to boost your savings right now – from renting your room on Airbnb to earning gift cards for sharing your opinion.

It’s not about whether you can anymore – it’s about finding the best and easiest ways to save money.

5 Easy Ways to Boost Your Savings

Here are some tried and tested ways to save money ($1,000 or more!) right now – and instructions on how to get started.

  1. Rent Out Space on Airbnb
  2. Earn Cash Back
  3. Sign-up Bonuses
  4. Save on Car Insurance
  5. Refinance Student Loans

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1. Become an Airbnb Host

AVERAGE SAVINGS: $200 to $10,000 per month

You’re probably already familiar, but signing-up to become an Airbnb host is a great way to make a (mostly) passive second income. You can either list an entire property or just an extra room.

Save the Extra Money You Earn from Renters

Depending on your space, you could make anywhere between a few hundred bucks to a few thousand in extra cash each month with regular occupancy. It’s one of the best ways to earn a side income and put money aside!

Don’t have an extra room so think Airbnb is a no-go for you? Hold your horses – there are still ways you could be making money by becoming an Airbnb host. You don’t need an extra room – just use your couch! There are plenty of people out there who would use that as an option if it was more affordable than other Airbnbs in your area – as long as they have the privacy they need.

Alternatively, why not go and stay with a friend or family member while you rent out your room on Airbnb? You could use it as an opportunity to see an old friend, for example – while making passive income.

Now, if you’re worried about hosting on Airbnb – you’re not alone. I totally get the hesitancy of some folks not eager to share their own space with others – especially because you’d be letting strangers into your home. Just know that Airbnb has a solid Host Protection Insurance program (which covers up to $1 million in liability) to give hosts peace of mind. Plus, because each renter has a profile on Airbnb as well as a rating with recommendations from other hosts (and everyone cares about their rating!) – it’s highly unlikely that anything would happen.

Sign-up to become an Airbnb host (it’s free!) – and substantially boost your savings!

Airbnb - Rent Out Your Space Price: FREE TO LIST List your space, set your terms, then start earning easy cash by hosting qualified guests. Get Started Airbnb - Rent Out Your Space

2. Earn Cash & Gift Cards

AVERAGE SAVINGS: $100 every month

Who doesn’t love making extra cash and earning gift cards? But here’s the real question: who doesn’t love getting those perks for shopping online, watching videos, filling out short surveys, and searching the web?

InboxDollars is an excellent rewards program that lets you earn rewards by doing the same things you probably already do every day. Signing up for Netflix trials, answering polls and simply searching the web can earn you points that can be exchanged for cash, gift cards and more.

Now, let’s be realistic – you probably won’t get rich using InboxDollars. BUT, it is a great way to maximize the return on your time – especially if you’re taking a break online to kill some time. I know how easy it is to get sucked into the YouTube vortex – so why not get paid for that time you spend watching videos?

Swagbucks isn’t the only app that offers this – there are so many more to choose from. Here are the best money making apps for 2020.

InboxDollars Price: FREE With InboxDollars, you take paid surveys, earn cash, it's that simple! Learn More InboxDollars

3. Sign-Up for a New CashBack Credit Card

AVERAGE SAVINGS: $500+ every 3 month

As you may already know, I’m pro-credit cards. But before getting one, you need to create some positive spending habits, and a learn thing or two about how to manage your money.

A credit card can be an excellent way to boost your credit score, reap fantastic rewards as well as save thousands of dollars over time – if you know how to make the most of it.

There are now countless types of credit cards, and getting to know the features of each type better will help in deciding which one is best for you.

If you already have decent (or better) credit, you have loads of great options when it comes to credit cards offering excellent cash back bonuses.

Save $500 Every 3 Months with Cash Back Bonuses

At the moment, many cards offer a cash signup bonus. For example, a $150 bonus after spending $500 in the first 3 months of having the card – which is like free money in your pocket!

And you won’t have to try hard to meet the limit because spending $500 over three months is pretty easy, right? And if you tend to spend more, you could be getting much more – some cards offer $500 bonuses for spending $3,000 over three months! Make sure you don’t spend for the sake of it because that’ll defeat the purpose – but if you typically spend about a $1,000 a month anyway, why not use it as an opportunity to grow $500 richer?

More interested in travel rewards? Check out my Chase Sapphire Reserve review – one of the best travel credit cards on the market right now!

Chase Freedom: A Millennial Money Favorite New card members will enjoy a 0% intro APR for 15 months and receive a $150 welcome bonus after spending $500 within the first three months of account opening. Card members are also rewarded with 5% cash back on up to $1,500 in purchases in categories that change each quarter, 1% everything else. Learn More Chase Freedom: A Millennial Money Favorite

4. Save on Car Insurance w/ Metromile

AVERAGE SAVINGS: $50 per month

If you’re like me, you love your car but absolutely hate forking over hundreds of dollars in car insurance. It was always painful paying close to $1,000 a year to insure my car, which I drive about 1.5 times a week (if that).

For those of you who don’t drive very often, Metromile is an excellent twist on the standard car insurance model that can help you save a substantial chunk of dough each month. It’s here to revolutionize the way infrequent drivers pay for car insurance – and makes your car ownership adapt to your lifestyle.

The way it works: you get quoted for a daily base rate (~$30/month) plus 4.8 cents per mile driven, which is Metromile tracks using a tracking device you keep in your car.

The insurance is solid, and the quote process is simple. The result? I now save between $500 and $600 each year using Metromile!

That’s enough for a round trip flight to Thailand if you ask me. Read my article on how to save on your auto insurance for more tips.

5. Refinance Your Student Loans – Save on Interest

AVERAGE SAVINGS: $200+ per month

Lots of young professionals have hefty student loan payments each month. But knowing you’re not alone doesn’t make it any easier.

If you are paying off high-interest loans, refinancing could be an awesome way to cut back on monthly expenses. Many student loan companies now offer refinancing options – which may help you significantly reduce the total amount of your loan.

In simple terms, refinancing essentially means taking out a brand new loan which pays for your older loan – but offers a better interest rate. It’s an intelligent way to consolidate your loans – and it could save you thousands of dollars in interest rate payments.

Credible is a company that can help you find the best refinancing options – though it doesn’t actually lend money itself. Credible is a multi-lender marketplace which makes refinancing accessible to people who want to lighten their student loan burden and save money on interest.

Credible works like the popular travel tool Kayak.com – but rather than comparing flights, it compares personal and student loans. It checks rates offered by various student loan companies and runs a soft credit check to see what your financial history is like. You get access to up to 10 different student loan lenders – making it easy to compare and find the best rates.
Keep in mind: Refinancing at a lower interest rate often takes good credit and a steady job. If you have both of those, refinancing could save you thousands of dollars each year, and tens of thousands over the life of your loan. It can also enable you to pay off the loan much faster than you would otherwise.

Credible We love Credible because you can comparison shop between all major (and not-so-major) banks at once. Through Credible, you will have access to vetted lenders who can save you money while putting you in control of your student loans. Get My Rate Credible

Saving $1,000 is easier than you think

So, there you go! If your goal is to save $1,000, you now know it isn’t as difficult as it might seem. Have you ever come across a saying that a positive mindset can help you achieve your goals faster?

The same applies if you want to save $1,000. I can give you all the tips you want – but the main piece of advice is to set your mind to it, and believe that it is possible. If I can do it – you can do it too! Knowing that will help you see beyond your current financial situation, and grow your ability to spot new opportunities for making and saving money.

Also, in addition to saving $1,000, you can also go out and make and extra $1,000 starting a side hustle or one of the best stay at home jobs.

I hope you make good use of these money-saving tips – and happy saving! Once you’ve saved a $1,000, make sure you read my post on how to save 1.25 million dollars!

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Grant Sabatier

Grant Sabatier

Creator of Millennial Money and Author of Financial Freedom (Penguin Random House). Dubbed "The Millennial Millionaire" by CNBC, Grant went from $2.26 to over $1 million in 5 years, reaching financial independence at age 30. Grant has been featured in The New York Times, Wall Street Journal, BBC, NPR, Money Magazine and many others. He uses Personal Capital to manage his money in 10 minutes a month.
Grant Sabatier

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