Struggling to save? Love a challenge? Then this may be the perfect method for you. Saving challenges can be difficult to start out but after some time the once ‘challenge’ can turn into habit. If you’re up to it, give one of these saving challenges a go.
1. The no Spending Challenge
If you want to really challenge yourself, try the no spending challenge. It limits you to NO spending for a set amount of time. Of course you must pay for bills, groceries and other necessities. The challenge is to deprive yourself of things you do not need and resist the temptation of shopping, eating out or even going to the movies. Get creative! Use as many money saving hacks as possible, walk or bike to work or cut back on water use.
There is no universal time frame to complete this challenge, it depends on the individual. Set a time frame which is achievable for you based on your income, expenses and level of self-control. Start off slow if you like. First do no spending for one weekend, then try one week, 1 month and so on. Some have gone as far as 200 days without spending!Endure the no spending challenge and see a major improvement in savings and a new found appreciation for life’s simplicities.
2. The Spare Change Challenge
A less challenging task for those who struggle to save. Every night simply put all your spare change from the day into a jar. Watch your money pile up over the months; by the end of the year you are going to need a bigger jar! $5 worth of spare change a night can save you around $2,825 a year.
The great thing about the spare change challenge is you hardly notice any money missing from your account. Start now and by the time you reach Christmas you could have all your seasonal expenses covered, making for a stress free, enjoyable holiday.
3. The 52 Week Money Challenge
The 52 week money challenge is the most popular and well known challenge. The appeal is the cheap start up, saving only $1 on the first week. Seems simple right? The hard part is that it challenges you to save more every week, by adding on $1. For example; week 1 save $1, week 2 save $2, week 3, $3 and so on. By the time you reach week 52 you will be saving $52 a week! Total savings after 52 weeks is $1,378.
Some people prefer to do the 52 week money challenge in reverse to get the hard part over with. You can start with saving $52 a week and work downwards to $1 a week.
The 52 week money challenge helps you develop a saving routine and gives you an idea of how much you are capable of saving. If in week 52 you were struggling too much then you know you cannot afford it. Work out what you are comfortable with. Start saving an amount every week once you have completed the challenge.
Disclaimer: The above information is general in nature and not intended to be financial advice. You should consider seeking professional advice before following any suggestions in this blog/website.