How can you Save More Money This Year?
We all set good intentions to save money every year.
The past few years have been a mess and many people have found it impossible to save.
Here are 5 savings challengs to choose from that other readers have found success doing.
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Get a Separate Account
Before we jump to the 5 challenges, please set up a separate account for you to use for your savings.
Placing the money from your challenge into a separate account will help ensure you don’t spend it on random things and it won’t get used in your regular spending.
This way, at the end of the year you will have the physical money sitting there to invest or put towards Christmas, a holiday, whatever it is you want.
Assuming you have already paid off debt or have a plan to do that.
Clearing debt is important, so is having an emergency fund to prevent using debt again.
The aim of these challenges is to help you get more money saved so you rely less on debt and can do more with your money.
Free Money From Bank Bonuses
Banks often give sign-up bonuses to encourage new customers. For example, Ubank offers $20 to new customers who join with the code S7VL6WF and use your card 3 times.
Up bank offers $7 instantly for new customers. and ING often has a bonus with the code CNW116 (we will update when the offers are on).
1. $10,000 Challenge Doing $27.40 a day
$27.40 probably seems random but it is how much you need to save daily to get $10,000 at the end of the year.
Find ways to make or save $27.40 each day and put that amount into a designated account.
When you break down $10,000 to easier amounts such as $27.40 it feels more achievable.
The key is consistency and putting the money in a separate account so you can see it grow.
$10,000 might seem like a huge amount right now, but if you find ways to make or save $27.40 every day and put it aside, in 12 months, you will have it.
And how good will that feel?
$27.40 feels more doable to most than “I will save $10,000!”
Finding ways to make or save that amount can be a fun challenge too and you will start to look for opportunities everywhere to make it happen.
Goals in general are more real and achievable when broken down into small steps.
Finding ways to make or save $27.40 can become a fun game, especially if you track it.
Saving $27.40 from various things can be done in conjunction with your regular savings or set up as a separate automatic transfer if you prefer.
How you do it is up to you.
It is usually not a regular saving for most people unless an automatic transfer is set up.
Instead, it is finding money here and there compared to saving a set amount from each pay.
It depends on how you do it.
The pressure to find a way to make or save every single day can be too much or become boring.
2. Double Your Money Challenge
On Aspiring Millionaire, I write about how I started with $2 and am doing different things to double my money.
Each step of the way is written about and after doubling my money 19 times, I will have over $1,000,000.
I have been slow doing it due to 2 babies close together, teens, moving states and other life obstacles.
However, now we are settled again, I am able to focus on it.
Doubling your money doesn’t necessarily need to be buying an item and selling it for double.
There are so many ways you can take the money you have and double it.
Reselling is one, creating eBooks or courses, investing if done wisely, starting a business, investing in yourself to get a payrise etc…
I share them all as I do them including how to do them.
I find it motivating to find ways to double my money.
Plus, my aim is to create income streams where possible so most steps will not be just about doubling my money at that point.
It will be an ongoing income stream creating even more wealth and flexibility.
Doing a challenge like this will force you to think outside the box.
Again, it is not a regular savings system set up.
Plus, it takes a lot of effort to think of ways to double your money.
It’s not guaranteed savings because each time you try to double it, you risk losing it.
3. $5 Note Challenge
Not many of us use cash anymore but for those who do, save every $5 note you get.
Most people don’t miss $5 but it can really add up.
Designate a drawer, box or envelope to put your $5 into whenever you get them. Out of sight, out of mind.
It’s a simple challenge and doesn’t feel burdensome to most as it’s usually random change from other things.
It can also be fun to add up all the money at the end of the year.
Some people find it motivating to see a pile of cash, so stacking the notes or adding them to a jar can be a visual motivation to save more.
You won’t earn interest if it sits in a drawer.
Also, it’s not a specific amount you are setting aside so it isn’t building great financial habits as well as other savings challenges.
4. The 52 Week Challenge
Over a decade ago, I was one of the first to write about this on another site.
You can do it a couple of ways.
Set an amount you want to save each week for the $52 weeks, create an automatic transfer from your bank account to the high-interest one and let it do its thing.
Or you can do a dollar per week. Meaning, on the first-week deposit $1, on the second-week deposit $2 and so on until the last week of the year you deposit $52.
This is a gradual way to build how much you are saving and learning to live without.
The final option for the 52 week challenge is to do the dollar per week in reverse.
So deposit $52 in week one, $51 in week two and so on until you are only depositing $1 in week 52.
Some people prefer this as they feel the end of the year is more expensive than the start of the year.
There are 3 options in one to choose from here, providing a regular savings pattern.
By saving regularly and being consistent, you develop good financial habits and can change your money patterns.
If doing the dollar week option, it’s a small amount unless you continue to build on it.
Something is better than nothing though.
However, if you are saving small amounts you might become unmotivated by how long it is taking.
Only you know what will work for you.
5. 1% Money Challenge
In the book, Profit First, you set up systems for your business and this can be applied to your personal finances too.
The first step is to take out profit first, so for personal finances, take out savings first.
Before you say, that’s too hard, all you have to start with is 1%!
If you get $100, put $1 into savings. As you get used to it, increase the amount.
Working with percentages is easier for many people because it means as their expenses go down or their income goes up, they can increase the percentage.
It also makes it easy when dealing with side gigs or bonus money, you already know how much you will take from those projects.
1% is a minimal amount and easy to implement.
You can set it up to be done automatically each payday.
Being gradual but increasing regularly means you build your habits and grow your wealth at the same time.
You won’t miss the money going to savings this way.
I don’t see many downsides here. You are building habits and over time will increase the percentage.
The only issue would be if you set it up through your work payroll system and have to do the paperwork to increase the amount every month.
What Savings Challenge are you Doing in 2022?
Here are the resources I mention:
Aspiring Millionaire and my challenge to double my money
Profit First: a must-read book for business owners
The Compound Effect: A book about how small habits done consistently will change your life
Atomic Habits: A book about small habits and how effective they are.