We all have high hopes for better finances in the New Year. Unfortunately, our goals are often so ambitious that it's easy to become frustrated and give up. That's why many people choose the 52 Week Savings Challenge. This has become the most popular New Year savings challenge and with good reason. Not only is this challenge easy, but it starts out so small that you'll quickly get used to putting money back without feeling the strain. Let's take a closer look.
How It Works
The way the challenge works is that you put a $1 into your savings account during the first week of January. During the second week, you save $2 and so on and so on until you get to the last week of the year and put $52 in your account. This will allow you to save over $1000 for the year.
Why It Works
The reason this challenge works for so many people is the ability to start small. After the holiday season, many people don't have the extra funds to put away $100 a week. However, most people have $1 to save. Each week, the amount gradually grows. This allows you to get into the habit of putting money back each week without feeling overwhelmed.
Can It Be Altered?
Yes. Another great thing about this challenge is that you can adjust it to work for you. You can even make the amounts larger to work for you. For example, instead of putting $1 back on the first week, save $2 and during the second week save $4 and so on and so on. Some people even hack the challenge to get it to work for them. For example, some people put more money into the account when they have extra money to cover any weeks where money may be short.
Is There an Alternative?
Yes. There are so many savings challenges out there. You don't have to do this one, it's just the easiest one. For example, you can also choose to save pennies each day. Start the first day by saving one penny. The next day save two. You continue this until you put back $3.65 on the last day of the year. Another challenge is to simply put $1 back each day. This challenge is perfect for getting in the habit of saving money and also great for kids.
If you want to do something good for your savings account in the New Year, try a savings challenge.
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