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Money gives a sense of security; it is something everyone wants to have when they are in need. As the costs of living are getting higher and higher every day keeping the money is becoming a bit of a challenge. Especially considering the wages not rising accordingly. Being frugal comes as a necessity in the world we live in. So, what can we do to have money in times of need or even when we want to spend it for pleasure?
This is where money challenges come in.
What are money saving challenges?
Money saving challenges are a fun and enticing way to keep money in your pocket. With just small changes in your spending habits, you too can save a lot of money. Before starting a challenge what you must do is set a goal for yourself. Think about what you want to save money for. It can be to create emergency funds, a vacation, or even to buy yourself something you want but is a bit on the expensive side. Either way, setting a goal is the first step of the way. Then you pick a challenge that will suit your needs. It is important to note that it should be something you can follow. No one wants to start a challenge they will quit after a few days.
What are the benefits of money saving challenges?
These challenges are small changes to your spending habits. They are usually easy to follow especially If you have chosen one that is suitable for your lifestyle. It is a stress-free way to have money for your needs. We listed three benefits to money saving challenges that might motivate you to start one.
Money saving challenges help you learn to be more frugal
A mistake a lot of people make is they buy things just because they are cheap. One item won’t break the bank but if you make this a habit, small expenses can create debt. The purpose of money saving challenges is to put away the money you were going to spend on inexpensive but unnecessary things. Over time these intentional decisions turn into a habit. By changing the way you spend your money it helps you become more frugal. You start thinking twice before buying anything. This money could go into your savings and be used for a different purpose such as buying your dream home or going on a vacation you most certainly need.
Money saving challenges help you pay off debt
Money saving challenges help you pay off debt
According to the GOBankingRates survey, 15% of Americans have credit card debt over $5,000. When they pay this money back can vary according to their spending habits. The purpose of money spending challenges is to change the way you spend your money permanently. Even If it’s a one-week or one-month long challenge. That is why a challenge like this can be beneficial for you to pay off your debt.
Money saving challenges help you build an emergency fund
Emergencies can happen to anyone, anytime so it is important to have money saved for these situations. Especially medical emergencies can be quite expensive and put people in debt. It is hard to imagine being in a situation like this, therefore a lot of people don’t think it is a necessity to save money for that. It is always better to be safe than sorry.
The best way to build an emergency fund fast is by doing a money saving challenge. With just small steps every day you can be ready If an emergency comes your way.
What are the 10 best money saving challenges for 2022?
You can achieve your financial goals quickly by following a challenge. That is why we listed 10 challenges for you to choose from. Before deciding which to follow think about the pros and cons. Not every challenge suit everyone but still you can find one that will help you.
To make them more fun you can suggest your friends join you in these challenges.
1. 52 Week Money Saving Challenge
This challenge will save you $1,378 in just 52 weeks and it starts very easy. The first week you put away only $1, the second week it becomes $2, the third week it is $3, and it goes on just like that. Every week you add $1 to the previous week’s amount. You add $52 at the 52. week and you will have $1,378 in your account.
If you are content with it and you can save more than $52 a week, why not continue with this challenge? Or if $52 is too much you can stop before that or restart the challenge. You can modify it according to your needs.
2. The 26-Week Bi-weekly Savings Plan
If you are getting paid bi-weekly this challenge is perfect for you. You start the first week by saving $3. By increasing this amount by $3 each week you can save a total of $1,053 at the end of week 26.
$3 savings are just a suggestion, if you want to save more you can increase this amount. Some people start with $10 and by increasing it to $5 every week they can save $2000 at the end of 26 weeks. The way you do it is up to your paycheck and motivation.
3. No Spend Challenge
This challenge gives you the most freedom to customize it compared to other challenges. No spend challenge is all about not spending money on unnecessary things. First, you create a budget for things other than rent and bills. Then you decide how long you will continue this challenge. You have total freedom over that. After those are decided, all you have to do is be conscious about your spending. All money you don’t spend goes directly into your savings.
4. No Eating Out Challenge
Eating out is perfect for those who work long hours. On the days you are too tired to cook you can go outside and eat something delicious. Unfortunately, it can become addicting and expensive. So, this challenge is for people who spend way over their budget eating outside.
Calculate how much you spend on eating outside in one month. Use that money to buy groceries and cook at home. After one month put the money you didn’t spend in your savings.
5. Save $5,000 in One Year
The best time to start saving money is the beginning of the year. Everyone is open to making changes in their lives around that time. So, use your motivation to save $5,000 in a year. What you need to do is decide the best time to put your money in your savings. Some people can prefer to put away $416.67 in one month, but some people are more inclined to put in $13.70 each day. Either way at the end of the year you will have $5,000 in your account.
6. The Kick a Bad Habit Money Challenge
Do you have bad habits like drinking or smoking? These types of habits are not only bad for your body but for your wallet as well. You can try this challenge to be healthy and save money at the same time. So, for a month every time you think of spending money on a bad habit you have, put that money in your savings. At the end of the month, you will be amazed by how much money you will save.
7. The Pantry Challenge
This challenge is all about wasting less and saving money at the same time. Often people order so much food that things in their pantry go bad before they can even use them. You can avoid this with the pantry challenge. Rather than ordering takeout or going grocery shopping take a look at your pantry. Cook for yourself and your family by using whatever is in your pantry.
8. Five Dollar Bill Savings Challenge
This challenge is very simple. Every time you have a five dollar bill in your wallet put it into a jar. After one month you can open the jar and spend it on whatever you want. The only downside is there is no way of knowing how much you will save with this method.
9. No Soda, No Alcohol, More Money Challenge
Alcohol and soda can be quite expensive, especially If you are drinking them frequently. No soda, no Alcohol, more money challenge is for people who want to be healthier and save money at the same time. Try to quit them for a month to see what happens. Maybe you will give up that habit once you see how much money you are spending on it.
10. The 100 Envelope Money Saving Challenge
With the 100 envelopes challenge, you can save $5,050 in only 100 days. What you need is 100 envelopes, once you have them number them from 1 to 100. The next thing you have to do is to shuffle them and put them in a box. Each day you pick out one envelope and put in money according to the number on it. At the end of 100. day open each envelope and you will have $5,050 in your hands.
Final Thoughts on Money Saving Challenges
Money saving challenges are a great way to have extra money to do things you love, buy your needs, and create an emergency fund. The best thing about them is there are many you can choose from. A different challenge can be done based on your needs and how much money you can save. They are also a great way to create a healthy spending habit.