Lots of people get trapped thinking they have to start a money savings challenge in January because that’s when everyone does New Year’s Resolutions, but you can start saving today.
If you find yourself slow to start but eager for results, you’re going to love our list of ideas for your next money saving challenge.
Fidelity hosts a year-long challenge to save $1 more than you saved last week every week for a year.
At the end you’ll be saving $200/ month which can set you up for a great money savings challenge in the second year. $50 per week for 50 weeks would be a perfect follow up to the first full year saving something every week.
This challenge is lovely for someone who works methodically. This week we’re going to take what we did last week and add $1 dollar on top. If I survived even though I saved $17, I can survive even after saving $18.
Saving money doesn’t mean what they say it means at the store. When you go to grocery outlet and spend $13 but they say you saved “$45”. no you didn’t. don’t fall for that.
You have to physically transfer the money you “saved” by not spending into an appropriate account.
You can save for retirement, into a brokerage, or let it stay in a money market account.
Wiht Fidelity’s 52 Week Saving Challenge, you’re backloading the pain.
If you would rather even it out, lets try the next savings challenge.
This is the 100-envelope challenge. It went a bit viral. You write 1 – 100 each on a separate card or envelope.
Put the cards in a jar and choose one each day for 100 days.
If you have Envelopes, you can physically put the money in the envelope. With the cards, you’ll do an electronic transfer.
If you like having your challenge flashy in front of your face, you can use post its on a wall, or yu can create a miro board.
Your stack of 100 envelopes or cards can be shuffled for a surprise or you can front load the pain on paydays if you’re a regular employee. If saving $100 days in a row is not possible, you can do the same challenge over a year. or maybe 16 months if you start with a No Spend September and take it through to the next year. You could pull for a week or just whenever you’re able with the idea stuck in your head that you’re going to get through them all.
If you’re the type of person who likes to take a hands on or creative approach to pretty much everything, one money saving challenge that might suit you is to make your own savings challenge cards.
Not everyone can take on a 52 week money savings challenge or strive for $6k saved in 6 months.
Creating your own savings challenge cards can make the process much more personal and that can help set you on the savings path.
It can feel overwhelming to stop spending altogether. Starting with a no-buy day can go a long way. It has better psychology like the snowball method compared to the avalanche method of debt payoff.
Head to Fidelity.com and open a new account.
If you don’t have any retirement accounts set up, start with Retirement & IRA. Choose a Roth IRA if you need the moment this is giving you or spend sometime researching the difference. But if you don’t have any retirement, and you perhaps have adhd, like me, just take the momentum you have right now and Open a Roth IRA.
Go through the clicks to open your roth IRA and then login. You’re not quite done.
In another window, open your current bank account.
Set up three transfers from your personal bank to your brand new Roth IRA using the account numbers for your new retirement account.
That much is up to you. Choose whatever amount make you comfortable. Remember, we’re doing three.
Each transfer can be the same amount or different. Or you can set it up to recur through your bank.
Choose what makes you comfortable:
Any amount that works for you. $37, $14, $2345.
We are creating the first foot path.
If you don’t have any retirement, a Roth IRA is the first to start because it’s the easiest. You contribute after-tax dollars and your dollars grow tax-free. There is no implication on this year’s taxes. You just contribute money you would have spent on lush bath bombs and too many lattes.
If you’re ready for your frugal season, stick around. We have other posts about money saving challenges and tips like our 50 Frugal Living Tips for ADHDers.
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