Five savings challenges to try in the new year
It’s a new year, and we are here to accomplish our goals. A common goal many people have in the new year is to “save more money.” But what does that even mean? The goal is too vague and leads many people to failure before they can even begin.
This year, it is time to make concrete goals and put them into action. Don’t just try to save “more” money. Create a hard number and reach for it.
In order to help you successfully save this year, we have compiled five savings challenges you can use to reach your goal.
1. The 52-Week Challenge
This is one of the most popular savings challenges out there. The beauty of this challenge is twofold:
There are many different versions of this challenge, making it very flexible for your specific goals and needs.
It is very satisfying to watch your savings grow every week, making it easier to stay motivated throughout the year.
We will go through four iterations of this challenge, although there are many more.
The Classic 52-Week Challenge
The classic version of this challenge has you start with saving one dollar and increase by a dollar every week until you are saving $52 on week 52. You can also take this challenge and flip it – start with saving $52 on week one and decrease until you save $1 on week 52. This might work for you if you spend more during the holidays and saving upwards of $50 a week is unfeasible during that time.
With this challenge, you will save $1,378 by week 52.
Save the chart below and start saving today!
The Double 52-Week Challenge
This challenge is the same concept as the classic challenge, except the money is doubled. Simply double the amount saved each week to complete this challenge.
By week 52, you will save $2,756.
Save the chart below to start this challenge!
The Mini 52-Week Challenge
If the classic challenge is too much for your budget, take on the mini challenge! With the mini challenge, you halve the amount saved each week to complete this challenge.
By week 52, you will save $689.
Save the chart below!
The Flexible 52-Week Challenge
The final version of this challenge is the flexible challenge. This is good if your pay varies from paycheck to paycheck. This challenge can also be done using any version of the challenge above.
Each week, pick an amount to save and cross it off. Once cross off an amount, you cannot save it again.
Use any of the charts above for your flexible challenge!
2. The No-Spend Challenge
This challenge is good if you are happy with your current savings, but feel like you have the opportunity to cut back on your spending. With this challenge, you will start to recognize your unnecessary and impulse purchases and free up some money over time by eliminating these purchases.
We covered this challenge in depth with this blog post, so check it out!
3. The $5 Bill/Spare Change Challenge
If you tend to pay for things in cash, this challenge is perfect for you! Throughout the year, save every $5 bill you get. It is best to deposit this cash into a savings account so it is “out of sight/out of mine,” and you can make some money on the dividends. At the end of the year, check back and see how much you have!
You should also be saving your spare change. The “change jar” has been around for ages, and it isn’t technically a challenge, but more and more we are hearing of people who will literally throw away their change because they don’t feel like carrying it around. Don’t do that! Instead, save your change and cash it out when the jar gets full. Trust us, it adds up.
The digital version of this challenge is using apps like Acorns. These apps link to your card and “round up” every purchase you make. They take the change from your roundups and put them into investments for you. You don’t miss the money since it is such a small amount, but over time, these roundups add up to quite a savings.
Got an expensive habit, like going out to eat all the time? Check out the challenge below!
4. “Tax” your vices
Do you have a regular habit that is costing you money? Maybe you like getting takeout, order a daily coffee, or have a habit of buying vending machine snacks.
Habits like these can seem largely innocent, but they do add up over time. In this challenge, you won’t be cutting them out. Instead, you will be taxing them.
Every time you make a purchase on a “taxable” vice, put a predetermined amount of money into your savings account.
For example, let’s say you order takeout at least four times a week. You decide to put $5 into your savings every time you order takeout. If you continue ordering takeout at the rate you did before, you are putting $20 into your savings account each week!
This also means: if you don’t have the money to tax your purchase, you don’t have the money to buy the item in the first place.
This challenge is excellent for three reasons:
It turns a habit that costs you money into a habit that also makes you save money.
It helps you see exactly how much you are spending on this habit, and whether or not you can truly afford it. If you don’t have an extra $5 to stick in your savings when you make this purchase, then you really can’t afford to buy a superfluous item in the first place.
You will find that you indulge in these money-burning habits less because you don’t have the money to put in your savings account. This still saves you money because you aren’t spending it on your vices.
5. The No-Fluff Savings
Challenges may not be your thing. If that’s the case, simply set up an automatic transfer! We recommend setting up a transfer to automatically deduct a pre-determined amount from each paycheck.
For example, if you want to save 6,000 in one year, and get paid every two weeks, you will need to save $231 every paycheck.
This set-it-and-forget-it method helps take out the possibility of skipping a few weeks of saving. Once you get used to the new normal of having less money coming into your checking account, saving will become easier than ever!
Building a savings – whether it’s an emergency fund, investments, or retirement planning – puts you on a path towards financial wellness and success.
We want to help you reach your goals and find your success! If you want to save more this year but aren’t sure where you’ll find the money to do so, make an appointment with our financial counselor. We offer free services to our members.