The 52 Week Savings Challenge
Many of us brought in the New Year's with a martini, champagne, beer or a non alcoholic beverage; celebrating with friends and family. Some of us may have overspent on events, evening attire and or the holidays in general. No need to fret, I have two savings challenges that are sure to get you back on track. Both challenges require consistency, focus, opening a new account and money of course.
The 52 Week Money Challenge requires you to deposit the same amount of money as the week of the year. It is a very simple concept. In week 1, you will deposit $1. In week 2, you will deposit $2. In week 3, you will deposit $3 and so on and so on until you get to week 52 when you will make your last deposit of $52. At the end of the challenge, you will have saved $1,378 or more depending on where you open your account. Some financial experts have recommended saving the money in reverse. Meaning, you should save $52 in week 1, $51 in week 2, $50 in week 3 until you get to the final week in which your last deposit would be $1. Either way works.
The 5K New Year’s Challenge is a bit more aggressive, a bit more stimulating, but more rewarding if you are able to complete the challenge. It takes even more focus and discipline than the aforementioned challenge, but with the right financial moves, you can be successful. There is not a simple pattern for this challenge so you may want to print out the chart so you can review it and refer to it once you accept the challenge. The beauty of this challenge is that it makes you take a long hard look at your finances. I reviewed my car insurance and I immediately found savings of $125 a month. Every little bit helps. You may fall behind a week or two, but you can make up the difference during the weeks that do not require as much savings. Remember, the ultimate goal is to get to $5,000 and I am utilizing a Betterment account to assist me with this goal.
Even if you do the easier challenge, not only will you have $1400 in your pocket, you will be practicing good saving habits. The hardest part about saving (besides having money to save) is maintaining consistency and focus. The goal is to complete the challenge so set a reminder in your phone every Friday to ensure you meet your weekly milestone. Also, recruit a family member or a friend to enter the challenge with you so you can help keep one another on track. I am accepting the challenge and now the only thing I need to know is, who's coming with me?