A lot of money, $5,000. Wouldn’t it be good to have that additional money in your bank account to cover unforeseen incidents in life?
Imagine by this time next year having $5,000 in your bank account.
Wouldn’t it be good to have it to safeguard you against unforeseen catastrophes in life? Imagine how much better you’d sleep if you knew you wouldn’t incur debt if your car broke down or you needed to visit the hospital.
Money is the main source of stress for North Americans, according to a 2016 American Psychological Association poll.
Saving money might be difficult, especially if you’re already straining to make ends meet. Saving even a few thousand dollars seems impossible in today’s world.
Enter the $5,000 savings challenge over 52 weeks, which includes a downloadable template.
What Is the 52-Week Money Challenge?
A savings strategy called the 52-Week Money Challenge can assist you in saving up to $5,000 by the end of the year. This challenge and similar ones have assisted thousands of people in saving more money than they ever imagined.
The guidelines are rather basic. I believe there are 52 weeks in a year. Your objective is to save a small amount of money each week, growing it as you go, reducing it, and then raising it once again. It is up to you whether to place the money in a piggy bank or a jar.
You save up to $25 for the first week of this challenge. You save $35 the following week, then $65 the third week. Your weekly savings target fluctuates, with the lowest being $25 and the largest being $155.
$155 in a single week?
Even if it seems impossible, this is entirely feasible. Don’t give up! You will have completed 10 weeks of the challenge by the time you reach your first $155 week.
If you don’t save the whole $155 by then, you’ll have built up enough momentum that it shouldn’t be a problem to raise your savings.
This challenge’s objective is to assist you in forming a habit of saving money, which will benefit you for the rest of your life, and in helping you to acquire better financial practices.
52-Week Money Challenge Printable Chart
To get going, download the printable 52-Week Money Challenge chart and use it as a guide to plot out your path to saving $5,000 in a year.
Best Uses for a 52-Week Money Challenge
Saving some extra cash is advantageous to everyone, whether it is for an extravagant holiday or an emergency fund. However, the Money Saving Challenge can be particularly helpful for a few different types of people.
Saving for a special occasion or a major goal
Would you want to travel to the Bahamas with your family for a week? Consider making an investment to launch an internet business. These kinds of objectives frequently need for substantial sums of money, which could appear out of reach but are reachable with a $5,000 savings challenge.
Other significant financial objectives that become simpler to reach with a challenge like this one include:
- Wedding
- Buying an engagement ring
- Saving up for a car
- Saving for a down payment on a house
- Going back to school
This challenge might assist you in saving the money you need more quickly if you have significant financial ambitions.
Fast-tracking your debt repayment
Using a savings plan like this one while also immediately putting your savings to your debt levels is a terrific strategy to pay down debt quicker than merely making the minimum payments each month if you’re in the process of paying it off.
Other Variations of the 52-Week Challenge
Trying a savings strategy is one thing. To adhere to it is quite another. The 52-Week Challenge works brilliantly for many people, but there are several situations that can make it harder for you to stick with the program.
Remember that there are alternative iterations of the challenge that can give you a higher chance of success if you feel the normal 52-Week Challenge isn’t a good fit for you.
52-Week Money Challenge (Bi-weekly)
Try the 52-Week Money Challenge Biweekly Schedule if you find it difficult to save money each week since your paycheck only comes in every two weeks. Saving money every two weeks will require you to save a larger sum at once, but it could prove to be less difficult overall.
Miniature Version for Smaller Goals
Maybe the tiny version will work for you if the full challenge doesn’t. The guidelines remain the same, but instead of saving the full amount, save half of it each week. In this manner, conserving money won’t be a significant financial strain for you and won’t interfere with your ability to meet your basic demands.
Of course, the main disadvantage of taking on the mini-challenge is that you’ll only be able to save $2,500 out of your initial $5,000 goal. Saving $2,500 before the end of the year is still no easy task!
Keep in mind that the most important thing is that you are saving money, not how you are doing it.
Savings Strategies to Aid You in “Winning” the Challenge
It’s crucial that you adhere to some of the basic rules for conserving money as things get a little harder during the challenge. You must adhere to some best practices in order to “win,” just like professional athletes who follow particular exercise routines or adhere to a diet plan in order to achieve their goals.
Here are some ways to cut costs that will enable you to reach your $5,000 target by year’s end.
Include it in your budget
Contrary to what many people think, following a budget does not have to be limiting. Making your budget work for you rather than against you is the challenge.
Making a budget need not be challenging. Whatever technique works for you can be used, whether a pen and paper, an Excel sheet or a comprehensive budgeting tool. Making a financial plan and regularly checking to see if you are following it are both crucial.
Pick up a side hustle
If you know where to search, there are endless opportunities to generate money.
They won’t turn you into a multimillionaire overnight, but if you can discover the gigs that suit you and stick with them, you may earn additional income to contribute to your savings objectives. Examine your abilities to choose which side business you should start. What services do you have to provide that people will pay for?
The next step is to develop your offer and identify the ideal customers for your product.
Eliminate unnecessary expenses
Whether it’s dining out or buying a couple extra pairs of shoes, we can all undoubtedly cut back on some of our expenditures. Spending less doesn’t exclude you from doing so; it only requires that you are deliberate about allocating your funds to the things that are important to you.
Fortunately, you can utilize technology to your advantage in this situation. For instance, the Trim app examines your expenditure and identifies places where you might cut costs. Among other great features, it can terminate unwanted subscriptions, provide helpful tips on how to save more money, and even negotiate your Comcast bills for you.
What to do with your savings
You’ll need a secure location to keep your money throughout the year while you work toward your savings goal. It makes sense to create a high-yield online savings account if you want quick access to your money. Make sure you are obtaining a competitive interest rate before establishing an account anyplace. The majority of internet banks provide interest rates of 1.50 percent or greater, which is more than 15 times higher than what traditional banks typically give.
Consider putting your money in the market if you won’t need them for several years or longer. Only select this option if you’re okay with taking on some more risk because investments might lose value. Stocks have historically returned an average of roughly 10% per year over the long term, which is a benefit of investing in the market. These apps are best for beginner investors.
With the 52-Week Money Saving Challenge, Consistency Is Key
Consistency is essential when it comes to saving, as it is with other endeavors.
If you don’t stay consistent over the full 52-Week Money Saving Challenge, even if you are the most excited person about the notion of saving money at the beginning of the year, your excitement will be for naught.
In the end, it all comes down to cultivating the appropriate habits and a development mentality.
Focusing on the little things while having the conviction in your head and stomach that whatever you do will eventually lead to something greater will help you stick to your 52-week savings plan. Working many side jobs, saving money for a rainy day, and to stop yourself from buying that glitzy trinket you don’t actually need all add up.
By focusing on the end goal and avoiding as many mistakes as you can, you will eventually stop needing 52-week challenges since saving will come so effortlessly to you that you won’t even have to think about it.
