How many goals did you set last year? How many did you achieve?
Each new year, season, month, and day brings new opportunities. They allow you to start fresh and begin again. You can reprioritize and refocus on the things that you deem are most important.
Most people set financial goals at the beginning of each year. They dream of earning more money so that they can buy more stuff. But, many fail to realize that these purchases can handcuff hem to a job, limiting their freedom.
Making and spending more money won’t help you get ahead. But, saving it will!
Today, start a money saving challenge. Each one will help you stash cash, live below your means, and open up doors to future opportunities!
The first challenge (should you choose to accept) starts off easy. Then, it gets tougher as time progresses.
Start this one by saving $1 in Week 1. Then, boost it to $2 in the second week. Each week raise your savings by $1. In the final week, you’ll put away $52 and end up saving $1,378 for the year!
Sound too easy or not challenging enough? Increase it. Get out of your comfort zone, stretch and push yourself to save more than ever before.
For example, multiply your weekly savings by 3. This increases your stash to $4,134 and puts you on the path of wealth creation!
This one works like the first challenge. But in reverse. You start off saving the greatest amount in Week 1. Then you work your way down, saving less and less each week.
For example, in Week 1 you would save $52. Then $51 in Week 2. This would continue until Week 52 where you would put away $1.
Some people find it difficult to save $52 in Week 1. Especially, if they aren’t saving at all. Going from $0 to $52 can lead to budgetary constraints, frustration, and cause people to give up altogether!
This option has you work your way down, instead of building yourself up. Most people find that it’s easier to improve their savings ratio and money habits over time. Instead of diminishing them.
But, if this option makes sense and works for you, great. I don’t care how you save, just as long as you do!
Saving money daily is a good practice. It helps you create the habit of putting money aside for your future.
This option is like the 52 Week Challenge except it’s completed every day. You start by saving 5 cents on Day 1. Then you increase the amount you put away by 5 cents every day.
Daily, this doesn’t seem like much. But, at the end of the year, you’ll have saved $3,339!
Some people struggle with the first three options because they require a regular financial checkup. And many people only look at their finances when they get paid.
To make things easier and free up time, save based on your pay schedule. Take the amount you would put away using the 52 Week Money Challenge and save as you receive income.
For example, imagine you get paid every 2 weeks. When the first paycheck hits your account in Week 2, you’d transfer $3 ($1+$2) to savings. Then, two weeks later stash $7 ($3+$4) away. Continue this process until the last week of the year where you’d save $103 ($51+$52).
This option still helps you save money. It just doesn’t require you to be as actively involved in the process of it.
While growing up, I would buy things and put my spare change in an empty tennis ball can. At the end of each year, I would sort it, roll it, and deposit it in the bank. Then, I’d sit back and watch the power of compounding go to work!
But, who even uses cash and gets change these days? Credit cards and financial automation have reduced the need to carry money.
Still, technology can help you save spare change. Apps like Acorns and Qoins track the purchases you make using your debit card. They round up each transaction to the nearest dollar which you can save or use to pay down debt. Both of which will put you in a better financial position without you even thinking about it!
If you’re like most people, food is one of your top expenses. Most individuals go out to eat without realizing some restaurants mark their meals up by over 300%!
Instead of going out to eat, cook at home. It’s often healthier and cheaper which saves you money.
Start by cooking every meal at home over a weekend. Then, challenge yourself to do it Monday through Friday. Work your way up to eating each meal at home for two weeks straight. You’ll be surprised at how much you save, better you’ll feel, and how good the first meal back in a restaurant tastes!
Throughout my corporate career, I brought my lunch to work. I would pack sandwiches, chicken bowls, and even tried being vegan for a few weeks. But, I also went out to lunch with my team when we had something to celebrate. This made these events feel special and rewarding, instead of a part of everyday life. Over my career, I estimate that I saved well over $30,000 by simply bringing my lunch to work most days!
What if you started doing the same? How much could you accumulate over the next month, year, and decade?
Do you remember having a swear jar? Every time you said a bad word you had to make a deposit.
The bad habit money saving challenge works like that. Except, you put money in every time you engage in a bad habit or one that you’re trying to break.
Many people promise themselves to get in shape or lose weight each new New Year. To help with this, you could save a certain amount of money every time you went back to an old habit.
Skipped the gym, again? Put some money in the jar. Still drinking soda? Make a deposit. Can’t stop eating cookies? Transfer money to savings.
This option works well for many people because it helps them become aware of their actions. They realize the things they are and are not doing. Both of which can prompt change.
The bad habit challenge has a dual effect. It improves areas of your life and saves you money at the same time!
Most charities and nonprofits track their donations. They color in giant thermometers which show their progress towards a fundraising goal. And you can do the same thing!
First, determine the amount you want to save. Then print out a thermometer and color it in as you begin to accumulate money.
This method works well because it gives you a visual. It allows you to see the progress you’re making and how much further there is to go.
PRO TIP: Pair this strategy with another money saving challenge and you’ll increase your chances of reaching your goal!
This is the simplest option there is to save more money. First, determine the amount and how often you want to save. Then automate your finances so that these funds get put away and you hit your goal.
For example, imagine you want to save $2,000 this year. Based on your pay, discipline, and preference; you could save $5.48 per day, $38.46 per week, or $166.67 per month. Each option gives the same result, you reaching your goal!
If you’re like most employees, your financial order of operations starts with your 401k. You contribute a portion of your pay to it and in return get free money!
The 401K match gives most people the biggest bang for their savings buck. Increase your contributions to your nest egg until you get the most that your employer matches.
Start the New Year by boosting your 401K contributions by 0.25%. Then continue raising it every month until you receive the maximum match.
When you receive income, there are only two options for it. You can spend it or save it. And if you don’t spend, then you save!
The Tightwad Challenge focuses on reducing your spending as much as possible for a certain amount of time. You temporarily go without your needs and wants which saves you money. But it also helps you determine which of your expenditures are of most and least importance!
Spending money is easy and most people do it without much thought. But, this money saving challenge makes you get creative and think outside the box.
The Tightwad Challenge helps you find free and cheaper alternatives to the things you spend on. Many people report that they rediscover free events offered in their city and items that they already own.
Go look in your closet or garage. I bet there are games, bikes, or camping equipment that haven’t gotten used in a long time. All of which give you the opportunity to have fun and create lasting memories.
Like most money challenges, it’s best to start small and work your way up. Begin by living like a Tightwad for a day. Then try a weekend. And if you are serious about saving, do it for a full week!
The new year prompts many people to reevaluate their financial habits. But, there is never a bad time to save more.
Each of these money saving challenges supports your growth in building better money skills. They all help you save which gives you money to invest and put towards your plans for the future.
Automating your finances makes the process of saving easier than ever before. You can set it, forget it, and reach your financial goals with little thought.
Start a money saving challenge today. It will never be easier and you’ll never have more time than you do right this second!
Which money saving challenge is right for you? Comment below.
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