Do you struggle with saving money in general? Money saving challenges can be a fun and motivating way to get you to save money. But with any challenge comes a level of commitment and the willingness to follow through. In fact, according to the Young and The Invested, 35% of American adults could not afford an unexpected $400 expense and would need to take on credit card debt to pay it or simply have no means to pay at all. Getting started on money challenges like these can ensure you’ll always have a healthy amount of cash and you’ll never be in a dire position.
It’s important to review your budget before starting one of the savings challenges below. Saving money can be difficult, but it’s certainly not impossible. You might need to cut back on some expenses to meet your goals. But trust me, it’ll be worth it! Here are four different savings challenges that you can try now:
The $1 Daily Savings Challenge
This savings challenge is as simple as it sounds. All you’ll have to do is save $1 each day for the entire calendar year. So, if you start on January 1st, you’d save $1 each day through December 31st. If you start on any other date during the year, you’ll save $1 each day until the same date the following calendar year. It’s simple! In the end you’ll have an extra $365 (woo!) You can read more about the $1 Daily Savings Challenge here to learn how to get started.
The 52-Week Money Challenge
The 52-Week Challenge is another fun savings challenge to try. In the first week, you save $1, in the second week you save $2, in the third week you save $3, and so on. Conversely, you can even start by saving $52 in the first week, and then save one less dollar each week, until you save $1 on the 52nd week. You get the idea!
Either way, by the end of 52 weeks, you’ll save $1,378! That’s enough to pay for a significant purchase like a new laptop or to create an emergency fund.
The Weather Wednesday Challenge
This is the most out-of-the-box challenge on the list. The amount of money you save each Wednesday will be based on the temperature in your town or city! If it’s a blustery winter Wednesday at 28 degrees Fahrenheit: transfer $28 to your savings account. Fast forward 5 months and it’s a beautiful spring Wednesday at 70 degrees Fahrenheit: time to transfer $70 to your savings account!
Depending on where you live in the country, this challenge can not only yield you different levels of savings but also be more challenging! The warmer the average temperature, the more money you’ll have to save every Wednesday.
The 100 Envelope Challenge
This is a very different type of money challenge altogether; you’ll be left with more significant savings than some of the other challenges mentioned in this article. It works like this: get 100 blank envelopes and number them from one to 100. Each day, shuffle the envelopes and draw one at random. The number indicated on the envelope represents the amount of money you’ll need to save that day and put it in that envelope. If you consistently draw higher numbers early on in the challenge, it might be difficult to keep up unless you have higher income or cash flow in general.
The good news? Once you complete the challenge 100 days later, have a mini celebration: you just saved $5,050! Now, this is some serious money: a down payment on your next car, an entire family vacation, or even for paying down a large lump sum on high-interest debt. If you want to save it for later, it’s a smart idea to deposit the money into a high yield savings account, so that you earn interest and protect your funds against inflation.
Create Your Own Challenge
If none of these challenges seem to strike your fancy, why not create your own? As you can see, there are tons of fun and different ways to save your money. Or, try modifying one of the above challenges by shortening or lengthening the time to save and/or the amount to save each day or each week. This can help make financial goals more achievable for you! It also helps to know what motivates you; if you can create a money challenge for yourself centered around one of your favorite activities or pastimes, you’ll be more likely to keep it going and save more money in the long run.
The Bottom Line
Money saving challenges are a fun way to continue saving money, or to start saving. It’s always a good idea to have some extra money on hand, whether it’s for an indulgent purchase or for when you’re in a tough situation financially. Money challenges like these aren’t going to keep your finances up forever, but they can certainly help you start!
Read More: The $1 Daily Savings Challenge For 2021