Saving money can feel like a big job, especially when you're starting from zero. But what if saving money could be like a fun game you play with your best friend? That’s exactly what happened to Maria, a 24-year-old who decided it was time to save some money. She had nothing saved, and starting seemed boring and hard. So, she called her best friend, Carla, and they decided to try a savings challenge together. Let’s explore some of the most popular money-saving challenges and how they can fit into Maria’s life.
The 26-Week Biweekly Money Savings Challenge
How It Works: The 26-week biweekly savings challenge is perfect if you get paid every two weeks. You start by saving $3 from your first paycheck, then add $3 more with each following paycheck. So, $6 from the second paycheck, $9 from the third, and so on.
Maria's Journey: Maria, who makes $1,000 every two weeks and has $100 left after paying bills and expenses, finds this challenge easy to follow. The amounts start small and grow slowly, so it doesn’t feel too hard. After 26 weeks, she will have saved $1,053! That’s a great start for an emergency fund or a fun trip. The best part? It matches her payday schedule, making it easy to remember to save.
The No-Spend Challenge: A Week Without Spending
How It Works: Have you ever celebrated No Spend November? Well similar to that challenge, the no-spend challenge is all about not spending money on anything you don’t really need for a certain time. Whether it’s a weekend, a week, or a month, you only spend on necessities like rent, groceries, and bills. No extras!
Maria's Journey: Maria and Carla decided to try a no-spend week every month. During these weeks, they skipped eating out, shopping, and ordering takeout. Instead, they cooked at home, found free activities, and enjoyed low-cost entertainment. The first time they did this, Maria was amazed at how much she saved—an extra $50 went straight into her savings. Even though she likes eating out and doesn’t love cooking, a no-spend week each month is a good balance. It helps her save more while still enjoying the occasional treat.
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Combining Challenges for Even More Savings
Maria learned about the different budgeting methods and discovered that combining different savings challenges would helped her save more money without much effort. Along with the 26-Week Biweekly Savings Challenge, she added the Keep the Change Challenge and a monthly No-Spend Week.
The Keep the Change Challenge
How It Works: The Keep the Change Challenge is super simple: every time you buy something, round up to the nearest dollar and save the change. For example, if you spend $28.57, you save $0.43. It’s like a tiny savings account that grows every time you shop.
Maria's Plan: Maria uses a money management app that automatically rounds up her purchases and transfers the spare change into her savings account. This means every little bit counts, and it’s done automatically, so she doesn’t have to think about it.
Potential Savings in 26 Weeks
By combining these challenges, Maria can save a lot in 26 weeks. Here’s how much she could save:
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26-Week Biweekly Savings Challenge: $1,053
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Keep the Change Challenge: Let’s say she saves an average of $0.50 per purchase and makes 20 purchases a week; she could save about $260 in 26 weeks ($0.50 x 20 x 26).
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No-Spend Challenge: By saving an extra $50 each month during no-spend weeks, she could save $300 in 26 weeks ($50 x 6).
Total Potential Savings: $1,613
Combining these challenges, Maria could save $1,613 in just 26 weeks! That’s a great chunk of money she can use for emergencies, a vacation, or something special.
Why Savings Challenges Work: Small Wins Add Up
Savings challenges work because they make saving money feel like a fun game. Instead of being a boring task, saving becomes something you can celebrate as you reach small goals. Whether you're putting money in an envelope, using an app to round up your purchases, or having a no-spend week, every little bit helps.
Tips for Success:
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Start Small: Even saving just a little bit, like $1 a week, can grow over time.
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Be Consistent: The key is to keep going, even when it feels slow. Little by little, it adds up.
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Use Money Management Apps and tools: Apps can make it easier to track your spending and savings. Look for ones that automatically save your spare change.
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Automate Your Savings: Set up automatic transfers to your savings account so you don’t forget.
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Have Fun With It: Customize the challenges to fit your life. Make saving money a part of your routine.
Explore more with the insights Jenn shares in the video below
Fun and Creative Variations
Envelope Challenge: Write different savings amounts on envelopes and pick one each week. Save the amount on the envelope. Start small and work your way up.
Weather Wednesday Challenge: Every Wednesday, save an amount equal to the day’s high temperature. It’s a fun and unpredictable way to save!
5-Bill Savings Challenge: Save every $5 bill you come across. It’s amazing how quickly those add up!
The End Goal: A Brighter Financial Future
By the end of their chosen challenge, Maria and Carla will have built a solid savings foundation and learned better financial habits. Whether they use their savings for emergencies, a special purchase, or just to have some financial security, they’ll feel great knowing they have a safety net.
Starting a money-saving challenge is a powerful step toward financial stability. Whether you’re saving for a rainy day, a big purchase, or just want to be more financially secure, these challenges can help you get there. So, why not start today? Pick a challenge, grab a friend, and make saving money a fun and rewarding part of your life. Remember, small steps can lead to big reward.
Maria’s savings challenges not only help her build a savings account but also set her up for a secure financial future. Whether she sticks with the 26-Week Biweekly Savings Challenge, adds the Keep the Change Challenge, or tries a no-spend week each month, the key is to start and keep going. With a bit of effort and creativity, anyone can improve their financial situation and work towards a brighter, more secure future. Contact First Alliance, our Member-Advisors can help you achieve your financial goals.
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