Engaging in money-saving challenges can help make the process of saving money feel less overwhelming and more inspiring.
Planning for a major event such as a wedding or vacation, or aiming to break a negative financial pattern, setting up a friendly challenge with yourself can assist in setting realistic goals and monitoring your expenses.
What are the benefits of participating in a savings challenge?
It’s an excellent opportunity to be more financially savvy. Currently, interest rates on numerous high-yield savings accounts and certificates of deposit are at their highest levels in more than ten years.
By allowing compound interest to work its magic over time, you will see a significant increase in the return on the money you deposit into one of these accounts.
Certainly, it’s a challenging period to set money aside. Quite a few individuals are facing challenges with the resurgence of student loan payments as they work on reducing high-interest credit card debt.
Everyday necessities and housing expenses continue to be elevated due to inflation.
It’s not always as satisfying to save money as it is to spend it. If you’re experiencing financial stress, a savings challenge could be a great way to shift your perspective.
Consider These Top Savings Challenges
By implementing a suitable savings challenge, you can motivate yourself to save more money and enjoy the process.
Remember that not every savings challenge will match your personalized savings goals, so choose one that fits your specific financial objectives.
- The 52-week challenge
Engage in the 52-week challenge by consistently setting aside a small amount each week to accumulate a total of $1,378 over the course of a year. Begin by setting aside only $1 during the first week.
After that, you’ll be able to save an extra dollar every week – $2 in the second week, $3 in the third week, and so on, until you have saved $52 in the last week of the year. By tallying up all those weeks, you will have saved a grand total of $1,378.
While many individuals begin the 52-week challenge with $1, consider aiming for a more challenging target. Consider gradually increasing the amount by $2 every week or beginning with $20 in the initial week.
The greater the initial amount, the greater your long-term savings will be if you maintain consistency.
- Embarking on the no-spend challenge
Embracing the no-spend challenge involves refraining from spending on nonessentials for a set period, be it a month or longer.
We can’t eliminate all expenses; housing, food, transportation, utilities, and other essentials are necessary costs.
This challenge encourages us to reassess our priorities and determine the most crucial areas for spending, all while cultivating better financial habits for the future.
During the month, many individuals cut back on expenses such as gifts, travel, dining out, and entertainment.
Some people steer clear of making online purchases or shopping with certain stores, such as Amazon.
- The challenge of dining in
Simplify the no-spend challenge by reducing spending on food outside the home for an extended period.
An average home-cooked meal is priced at $4.23, whereas dining at a budget-friendly restaurant amounts to around $16.28, as per Top Nutrition Coaching.
Investing in a box of tea bags or a can of coffee to enjoy at home can help you save money in the long run compared to buying drinks on the go.
To implement this plan successfully, you need to develop a specific grocery list and dedicate extra time to cooking in the kitchen.
It’s important to treat yourself occasionally, but you can save a significant amount by avoiding dining out.
- The cash-only challenge
This challenge requires using physical cash, which may feel a bit traditional. However, utilizing physical currency has proven to be a successful method for saving money. There is a psychological aspect to consider:
According to a study conducted by MIT in 2021, paying with physical cash at the register triggers a greater sense of discomfort.
Establishing a specific budget for your spending can help you become more mindful of your expenses and avoid overspending.
Using a credit card or digital payment method can make it more challenging to keep track of our budget.
- The challenge of finding a date that doesn’t cost a dollar
This challenge can be quite enjoyable if you are in a committed relationship (maybe not the ideal choice for a first date).
You and your partner prioritize discovering affordable date ideas. Explore a nature trail for an outdoor hike, or check your city’s parks department website or local magazine for a list of free events and seasonal programming.
Consider pooling the usual amount you’d spend on a traditional date into a shared savings account for upcoming costs like a trip or a vehicle.
