Saving money is a common New Year’s resolution, but many struggle to get started. Savings challenges offer a structured approach, turning the process into a game and tapping into our natural desire for achievement. These challenges vary in complexity and commitment, offering options for every budget and financial goal. From daily penny-saving to monthly subscription audits, there’s a challenge to fit every lifestyle.
One popular method is the “no-spend day” challenge, where participants abstain from non-essential purchases on designated days. This helps identify spending weaknesses and encourages mindful consumption. Any unspent funds are redirected into savings. Another approach is the “round-up challenge,” where purchases are rounded up to the nearest whole number, and the difference is saved. This accumulates small amounts consistently, leveraging technology through banking apps.
The “100 envelope challenge” involves labeling 100 envelopes with numbers 1 to 100. Each day, a random envelope is selected, and the corresponding amount is placed inside. After 100 days, a substantial sum is accumulated. A more accessible version is the “1p challenge,” where 1p is saved on day one, 2p on day two, and so on. Although starting small, this method builds significant savings over time.
For those seeking a more active approach, the “cancellation challenge” involves reviewing monthly subscriptions and canceling unused services. This redirects existing spending towards savings without altering the overall budget. This can lead to significant savings, especially for those with numerous subscriptions. A final straightforward approach is the “small change challenge,” where loose change is collected and deposited into savings at regular intervals. This fosters a saving habit without the pressure of fixed targets.
Beyond these core challenges, there are additional tips for maximizing savings. Strategies for grocery shopping include utilizing “odd boxes” of discounted produce, leveraging food waste apps like Too Good To Go and Olio, and capitalizing on yellow sticker bargains. “Downshifting” to supermarket own-brand products can also yield substantial savings. Mindful spending habits, such as waiting 24 hours before making non-essential purchases and checking for existing items before buying new ones, further contribute to financial discipline.
Once a saving strategy is chosen, choosing the right savings vehicle is crucial. Traditional methods like piggy banks and jars offer tangible progress but lack the benefit of interest. Savings accounts provide interest earnings, with various options catering to different needs. Easy-access accounts allow for flexible withdrawals, while fixed-rate bonds and notice accounts offer higher interest rates for longer-term commitments. Banks also offer “pots” within accounts to segregate savings and potentially earn higher interest. Comparison websites like MoneyfactsCompare and Compare the Market can assist in finding the best account for individual circumstances. The key is to find a method that aligns with personal financial goals and spending habits, turning saving from a resolution into a sustainable practice.
