So you want to save more money?
It’s as good a day as any to get started saving more.
Today I thought I’d share my thoughts on the 52 week money challenge and see how many of you would do something like this.
How the 52 Week Money Challenge Works – Download the Printable
The idea is simple:
- deposit $1 into your savings account (if you don’t have one, open one) on week one of this year,
- followed by $2 on week two,
- $3 on week three, etc, etc,
- until you reach week fifty-two where you make your last deposit of $52.
Your final balance at the end of the year is $1,378. It’s a simple way to save almost $1,400. Download the printable spreadsheet to see how the numbers add up.
*Includes a reverse order spreadsheet in case you want to do the 52 week money saving challenge in reverse (i.e. start with a $52 deposit on week one).
Why You Should Take the 52 Week Money Challenge in 2017
The amount, $1,378, might not sound life-changing for you at first.
But I promise you this…when you take on simple financial challenges, they lead to bigger ones!
According to the University of Michigan 23.4% of 9,000 families surveyed had no liquid assets. Sad.
I’d say for those guys this is a life-changing amount. For you, it might be a great way to start getting into the habit of saving.
No one says you can’t continue saving past week 52.
Even though the process is simple, the challenge has some powerful effects.
1. It’s Simple!
First, the challenge is embarrassingly simple (most great ideas are). Everyone has a dollar and a place to stash it. A simple savings account or coffee can will suffice.
There is no excuse for not being able to at least start this challenge. Five weeks in and you’re only putting $5 away at the end of the week.
2. It’s Habit-Forming
The second thing I like about this challenge is that it’s habit-forming. The challenge places you into the act of saving. This means you’ll have to:
- establish a place to put the money, and
- determine where the money is going to come from.
As easy as these two steps sound, if you’re not saving regularly then it’s because you aren’t doing those two things. And there’s nothing like the fun of a good challenge to help make the habit-forming process easy.
3. It Sparks New Habits
Odds are, if you stick to the challenge, you’ll have much more than $1,378 by the end of the year.
My Saving Story
I used to be terrible at saving money. In my 20s I’d wait till the end of the month and transfer whatever I hadn’t spent over to my savings account.
For a few weeks I’d feel great! But then spending would get out of control and I wouldn’t have any at the end of the month to save.
Or worse, I’d spend too much and have to borrow from my savings, reversing all the progress I’d made. Sad.
I challenge you to take the extra step below.
Extra Step: Automate It!
To take your challenge to the next level, make it automatic. Setup an automatic withdrawal from your checking account into a separate online savings account or use one of these auto savings apps to make it happen.
Are you taking the 52 week money challenge? Do you use other savings challenges to encourage you to save more?