52-week savings challenge: A brief overview
Money management is more smart work than hard work. There are different ways in which one can make savings easier and stress-free. And with this in mind, today I bring you the 52 weeks saving challenge.
This challenge It is an easy and comfortable way to save more money and keep a check on your spending. Here is everything you need to know before you start saving with this 52 weeks challenge.
How does it work?
The 52 weeks challenge, as the name suggests, involves saving money every week of the year. However, instead of saving the same amount each week, in this challenge, you have to keep increasing your amount by each week.
So if in the first week you save $1, set aside $2 next week, then $3, $4, $5, and so on and so forth. This way by the end of your 52 weeks, you can have in your savings a whopping $1378. Isn’t that amazing?
Alternatively, you can also start this the other way round. So if you start at $52 then $51, $50, $49, and so on, from Week 52 to Week 0, your savings will again add up to $1378.
I personally recommend the reverse method because I tried the same on my 22nd birthday and I found it easier to set aside a decreasing amount than an increasing amount. It was like having an extra dollar to spend every week and yet I ended up saving the same $1378
Why do we call it easy?
The most common complaint against sticking to a savings plan is, well, how to stick to it? The 52 weeks savings challenge is easy and flexible, hence, easy to stick to. The amount that you commit increases very slowly, giving you time to adjust to your goals.
Moreover, the challenge is also an easy way to get into the habit of making better financial decisions and becoming more responsible about your wealth. The beauty of the challenge is its uncomplicatedness.
When to begin?
The best day to start the 52 weeks savings challenge is TODAY. Your week can be from Monday to Monday or Thursday to Thursday. It is all up to you.
You can also consider starting from the particularly common dates like the first week of January, or your birthday, or after starting a new job. What matters, in the end, is that you finish your 52 weeks cycle without fail.
Where to keep the money?
The golden rule of savings is keeping it away from your daily reach. Therefore, before you start this challenge, it is essential that you create a separate savings account that gives you a good interest rate and is designated solely for the purpose of savings.
What to do with the money you save?
There is a myriad of ways in which this money can be helpful for you. You can start an emergency fund, pay your credit card bill, or take that dream vacation you have always wanted.
If you are a student or just started working, you can invest the money and multiply your income. In a nutshell, there is no dearth of ways in which this $1378 can kickstart something valuable for you.
How to keep up with challenges and not give up
No matter how easy I say this savings challenge is, 52 weeks is undoubtedly a long time. But from personal experience, I can suggest a few ways that kept me motivated to stick by my scheduled weekly additions.
- Take the challenge with a friend. In this way, you can check up on each other.
- Set weekly notifications and alarms on your phone.
- Set aside the amount at the start of each week, instead of waiting till the end of the week.
- Better yet, you can set aside the amount as soon as you receive your salary/monthly allowance. This way, you can ward away any temptations to spend.
- Decide your goal of saving money before you start and then remind yourself of the challenge each day to remember why you are doing this.
The progress of $1 is a standard suggestion but the challenge can be adjusted. You can use the Astra 52 Week Money Challenge Calculator to calculate how much you can save in a year for different amounts and print your 52 Weeks Money Challenge Chart after customizing your goal.
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Frequently asked questions
1. What should I do with savings right now?
If you have some spare cash, here is what you can do with it:
- Pay off your debt
- Put it in a long term deposit or other investment instruments
- Build an emergency fund
2. How can I save money every week?
Here are some easy ways to cut down your weekly expenditure to save more money:
- Make your coffee at home
- Reduce your number of take-out and dine out meals
- Wait for 24 hours before making a big buy so that you have time to introspect on your spending
- Switch to automatic ways of setting aside money for savings
- Consider walking instead of taking out the car every day
3. How can I make more money to save?
Here are some ways in which you can earn extra cash to pump up your savings:
- Get a side job
- Get freelance gigs
- Sell your extra stuff
- Rent out the extra room
- Start a small business
4. How can I say motivated to save every week?
Here are some easy ways to stay motivated for your weekly savings:
- Use an online app to track your savings
- Automate your savings
- Track your spendings
- Celebrate small wins
- Visualize your goals and surround yourself with the remainder of the ultimate win
- Make it a habit
5. What is the $1 challenge?
- The $1 savings challenge is another name for the 52 weeks savings challenge as in this challenge you save $1 more than the previous week which finally adds up to nearly $1400 in your savings by the end of 52 weeks.