Saving for the long-term is intimidating. If you’re starting out, don’t overwhelm yourself too much. Just focus on getting the first $10,000.
Money picture from Shutterstock
For those who are just beginning to save, even $10,000 sounds like a lot. And it is! But it’s also a much more feasible-sounding goal than, say, a couple of million dollars. It’s also not so low that you could blow it on a single emergency, as you might with $1000. As personal finance blog Money After Graduation points out, once you reach this number, the rest starts flowing smoothly:
Ten-thousand is a big deal because it’s when you’re money starts to feel like it has some weight to throw around. It’s probably more than you earn in one month, or even two or three… It’s enough that you can look at semi-expensive things and think “I could buy three of those”. Then thousand dollars is resilient and sexy and just a little bit powerful. But perhaps most importantly, after you get your first $10,000, every subsequent $1000 will seem to come easier.
That’s not to say this isn’t easy, but it does help reframe your goals into something that feels a little less hopeless. It can also help give you perspective on your finances. How long will it take to reach that number? How much sooner could you make it there if you reduced an optional expense?