The two effective methods you can use in conducting saving money challenges are either a piggy bank or a savings bank account. They are both fun and suitable to use when conducting saving money challenges, they can also help you grow financially.
Previously, we have written two articles that have a reflection on this present publication –
10 simple ways to save money each month
How to save money for Retirement at 50
However, in this article, we are dishing out effective saving money challenges you can use to save consistently and enough too. So it is one thing to desire to save, then the determination to task yourself is another thing.
What are saving money challenges?
Saving money challenges are monetary or related monetary activities that individuals do to motivate themselves to save enough money. With these saving money challenges individuals gradually build saving habits and successful saving goals. There are two techniques you can use in doing effective money challenges.
1. Saving smaller amounts regularly
You can choose to set aside a little amount of money on a daily or weekly basis. You do it for a consecutive longer period depending on your savings objectives. You can also decide to save little by little and then gradually increase as you proceed. This method is easier to use.
2. Reducing expenses to increase income
This method is also effective but it may have some disadvantages. There are times you may not be able to reduce expenses, for instance during inflation when the price of items is considerably high.
You see, people have different ways of saving money. Each person saves according to ability and possibility, but no matter the style of saving it still poses a challenge.
Doing saving money challenges can be difficult, you may not feel the impact until the desire to make important expenses arise. At this, you will suddenly realize you need to save and still make the expenses. It can be more challenging when expenditure exceeds revenue.
But the thing there is…
You need to save and there are many ways to do it. Even if you find saving money difficult, here are some effective saving money challenges to try out.
Effective Saving Money Challenges
1. 52-week money challenge
This may not be a daily saving but a weekly savings challenge. The 52-week money challenge happens within one complete year. For each week you set aside a certain sum of money.
These savings will last for 52 weeks; the amount can increase gradually as the week proceeds. You can as well decide on maintaining the initial amount; the important thing is saving money each week. As time goes before the end of the challenge you must have increased your financial worth.
2. No spend challenge
Doing this challenge entails monitoring your spending; you will have to avoid spending on non-important items. Avoid attending less important occasions that may lead to spending and cut other expensive costs.
This challenge can last for any period you intend to carry out the challenge. For instance, you can do it for one week, a month, six months, or a year. In all this, your objective is to spend less and increase savings.
3. Save the change challenge
If you want to conduct this challenge you will have to get a piggy bank. With this box, you will always save money that is left over after spending on items.
Each time you make a purchase and there is a leftover from the same amount, you save it. Ordinarily, this method may favor domestic workers and housewives who usually run errands for groceries.
4. Saving goal challenge
Sometimes, you desire to acquire one thing or the other but the financial means to own it becomes farfetched. In this case, you will need to go for a savings goal challenge. This means setting out a savings goal and working towards it.
Set out a plan on how to set aside a specific amount of money depending on your time, budget, and target. Stick to your target and motivate yourself to reach it.
5. 30 days money challenge
Saving challenges are very common in recent times; it is tasking you to save consistently for 30 days. It can be easy if you do it with a smaller amount, although it may depend on your motive for saving.
The easy way is to keep aside the very amount you decide to save every day continuously for 30 days. In the end, you can take the whole amount and deposit them in the bank. You can as well use them for solving your problems it just according to your savings objective.
The 30 days challenge is more advantageous for people who are having short-term goals. Then, at the expiry of the 30 days, they may utilize the money.
6. Minimalism saving challenges
The minimalism challenge involves selling those properties you no longer use but are still valuable. Maybe they are no longer in vogue and you want to dispose of them.
You may be tempted to spend the money on fancies and edibles but the challenge here is to save. Therefore, as soon as you sell them you deposit the money into your savings account.
7. Denomination-saving challenges
This method poses to be simple and interesting yet challenging. The trick here is to always set aside a particular denomination of currency each time you have it.
For instance, each time you purchase any item and get a change of $50 note, you immediately save it in a piggy bank. It may not necessarily be when you make a purchase, sometimes you may incidentally get it, then you save it.
The denomination can vary depending on your choice; it can be a lower or higher denomination. As for the period, you can choose to save for any given period, 30 days, 365 days, or weeks.
8. Income cut-off challenge
The income cut-off challenge is mainly suitable for salary earners. Doing this challenge entails cutting off a specific percentage of your income every month.
It can be at the beginning or at the end of each month then the money is deposited into your bank savings.
The income cut-off challenge encourages individuals to adhere to the importance of creating a budget before expenses. It will also help you to avoid unnecessary spending.
9. Meal planning challenges
Eating out and not having to cook your meals by yourself could make you spend too much. The meal planning challenges require that you always have your meals prepared at home and eat less outside.
Start by creating a plan on how you will buy your groceries and what meals to cook at a particular time. You can do this for some specific weeks and realize a huge amount of money.
10. 365 days money challenge
This saving challenge can be tough as you will have to develop a habit of setting aside some amount of money on a daily basis. The amount to always save depends on the choice of the individual carrying out the challenge.
For instance, you may decide to set aside $10 or $100 dollar as you wish for 365 days consecutively. Then at the end of this stipulated period, the amount is used to set off a project.
Methods used in conducting saving money challenges
It can be enticing when discussing with a friend about conducting a saving money challenge. You will have to explain very well how to go about it giving the two effective methods.
You would prefer a more convenient way than a tempting way. For instance, it will be tempting if you conduct your saving challenges where the money is visible and easily assessable. You may be tempted in using it in solving one problem or another.
If you put away the savings in a hidden section, away from view you will be able to resist the urge to spend. Therefore using a piggy bank or a savings bank account can be more effective although they both have their differences.
Using a savings bank account
If you would prefer to use bank savings, it is suitable but it may attract more challenges if the bank is in a faraway destination. It is more advantageous because a bank savings account attracts interest. A savings bank account is safer than a piggy bank.
Using a piggy bank
You can build a box of wood, metal, or plastic and pinch a hole at the center where you will constantly slot in your money. This method of conducting saving money challenges is very simple and more practical. It is also motivational as you will watch it increase on a daily basis.
The disadvantage here is that you will not get any interest because you are doing it at home. Again doing it at home might be risky and expose you to burglary. Although as the money increases higher you can deposit it to your bank.
Advantages of saving money challenges
We have listed out the 10 effective saving challenges you can try out especially if you are finding it difficult to save. Below we are listing the benefits of doing a saving money challenge.
Maybe, with these benefits, you might get convinced if you are still uncertain about the possibility of improving your financial situation.
1. Increased financial worth
Due to numerous expenses and responsibilities, it becomes difficult for most individuals to attain some level of financial independence. Most times they are unable to open a simple savings account and manage it.
Applying the techniques of saving money challenges an individual is able to open a bank account. With this, the individual will gradually attain financial independence.
2. Develop disciplined financial habit
The more you engage in practicing saving money challenges the more you train your mindset to adapt to disciplined financial habits. You will prioritize saving, develop a healthy financial habit of spending, and plan for other means of income.
3. It gives joy and satisfaction
Although at the beginning or in the process of the challenge it might seem difficult as some other needs will call for attention. However, at the end of the challenge when you start gathering your money, there is always a surge of joy and satisfaction.
4. It helps to achieve goals
Saving money challenges acts as a target for achieving goals. When you have many financial responsibilities such that you cannot afford to finance a project, you can apply the challenges techniques.
You can be better off if you conduct the 52 weeks or better still the 365 days challenge. There is always a sense of accomplishment when you realize you have achieved one project.
5. It helps in times of emergency
Emergencies take people unaware. If you keep doing different saving challenges on different occasions, you can as well utilize it in times of emergencies. So instead of looking for a friend or someone to lend you some money you resort to your piggy bank savings.
6. Personal finance tips
Doing saving money challenges is another way of learning and practicing personal finance tips. For instance, if you conduct the no-spend challenge, savings goal challenge, and 365 days you are practicing personal financial tips.
Disadvantages of saving money challenges
1. Unrealistic goals
It can be difficult for some individuals who have limited financial resources to engage in any of the saving challenges. Thus, the meager earnings may not be enough to solve pressing issues that cannot be avoided. If this becomes the case any set target or proposed project may be unrealistic.
2. It may be overwhelming
Some saving challenges can easily get the individual stressed considering the length of time. For instance, the 52 weeks, 365 days which has a long-term duration may keep one in suspense and exhausted. Although the long-term duration is a good means of saving enough money it also has its disadvantage.
3. It deprives other financial obligation
In some cases, conducting a savings money challenge can make an individual neglect other financial priorities. It can happen mainly with individuals who are struggling to attain a particular financial goal. Thus, in the course of trying to achieve that set goal other financial priorities are neglected. This can give way to an imbalanced move toward personal finance.
Conclusion
The saving money challenge is a good way of building financial freedom. It is very popular, although different individuals do it in different ways. The methods listed in this article are short-term methods.
We also have the long-term method whereby an individual engages in different investment options to accumulate revenue. By participating in these challenges you gain many benefits of building healthy financial habits. Finally, achieving financial goals
