We all want to save more money, but it’s rarely easy to commit to putting money aside every month. One technique that many savvy savers use is to take part in saving challenges. Saving challenges can make saving money easier, more fun, and more motivating.
If you’ve struggled to save money in the past, why not try out one of these money-saving challenges?
No-spend challenges are an increasingly popular personal finance strategy. Essentially, you have a set period where you only spend money on absolute essentials. This could be a no-spend weekend, week, month, or even a few days a week where you promise not to spend money.
Whatever rules you set yourself for a no-spend challenge, you’ll quickly realize how beneficial they are. No-spend challenges give you a chance to reset your finances, figure out what you really need to spend money on, and even save money for the future or to put into a Wealthify ISA or a high-yield savings account.
365-day savings challenge
One of the best ways to get into the habit of saving money is to start small. That’s exactly how the 365-day savings challenge works. You start out by saving a small amount and every day you increase the amount you save.
For example, if you start the challenge by saving 1 penny and you add 1 penny to this every day (save 2 pennies on day two, 3 pennies on day three, and so on), by the end of the year you will have saved a surprising amount! You can change the amount you are saving, such as starting at 5 pence and increasing this by 5 pence every day, but either way, you’ll become used to putting a small amount of money in a savings pot each day for a year and have a nice fund when you finish.
If you bought a coffee that costs £2.35, would you notice that extra 35p if the coffee was £3 instead? The round-up challenge essentially asks you to save all of your spare change for a year. Like the 365 day challenge, you’re saving tiny amounts that you won’t notice, but they’ll quickly add up.
Most of us pay using cards rather than cash these days. Luckily, there are plenty of apps out there that can round up your payments and put that money into savings or investments. This article breaks down the best round-up apps for saving money and has plenty to choose from.
Tax your vices
We all enjoy a morning coffee or a takeout every now and then. Cutting these things out of our lives for the sake of saving money can be depressing and often unsustainable. Instead of cutting out every little joy and vice from your life, tax your vices instead.
This challenge asks you to calculate a tax on unnecessary spends or “vices”, such as your daily latte, your weekly takeout or restaurant meal, or a bottle of wine. Put an extra pound or 20 percent of the total cost of your “vice” into your savings every time you indulge. Your vices might be a bit more expensive, but you’ll be saving money every time you enjoy yourself.