How can you Save More Money in 2022?
We all set good intentions to save money this year. The past few years have been a mess but since things are looking up, now is a good time to try a new savings challenge. Here are 5 to choose from which other readers have found success doing.
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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.
Check out more on this here.
$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.
It is not a regular saving for most people. Instead, it is finding money here and there. I feel the pros outweigh the cons on this though.
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 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.
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 is 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.
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. 52 Week Challenge
Well over a decade ago, I was one of the first to write about this. 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 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.
If doing the dollar week option, it’s a small amount unless you continue to build on it.
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. Alternatively, The Compound Effect and Atomic Habits are books about applying small changes to your life for big results.
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 pay day.
I don’t see many downsides here. You are building habits and over time will increase the percentage.
What savings challenge are you doing in 2022?
Here are the resources I mention:
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.