Money Challenges are a great way to motivate yourself to save money and get out of debt throughout the whole year. They range from the simple task of putting extra change a designated savings jar or to saving up $5000 towards a down payment on a house. The type of money challenge you choose is going to be largely based on your goals and financial ability, but if you stick with it the entire year you will see amazing benefits and hopefully learn healthy money habits. Below are the four money challenges you should probably try this year.
The 52 Week Money Challenge
The 52 Week Money Challenge challenges you to put a certain amount of money into savings every single week. You start by saving a $1.00 the first week and then double the amount to $2.00 the second week. You continue doubling the amount every week until at the end you’ve saved over $1300! The plan is going to be different based on your pay schedule. Below I’ve included a free download based on a Weekly and Bi-Weekly Pay Schedule
The Starter Savings Challenge
The Starter Savings Challenge is an awesome challenge for those just starting out. It’s especially great for those who can’t afford to pay the large amounts required towards the end of the year in the 52 Week Challenge. In the end, you will have saved a significant amount of money. I recommend this challenge for those wanting to save for Christmas or those looking for a way to put away money without thinking about it.
The Save $5000 for a Down Payment Challenge
I recently stumbled upon this challenge on the Facebook Page of Denise Hadnott. I’ve not quite figured out the breakdown of the payments each week, however, at the end of the year, you will have saved $5000. This is great if you’re working towards saving up for a downpayment on a house but keep in mind to avoid PMI (Private Mortage Insurance) one needs at least 20% down. This is also a great way to save up for a car or any other big-ticket item.
The Credit Card Pay Down Challenge
This challenge can save you big bucks in the long run. In January, you call up all your credit card companies and see if you can negotiate a lower interest rate. You then list your balances from smallest to largest. Does this sound familiar? Yep, it’s the Debt Snowball. You start off by paying as much as you can on the smallest balance while only paying the minimum on the other cards. Once you’ve paid off that first card you roll the amount you were paying into the next card ( this is where the snowball action takes place.) Continue until you’ve paid off all your cards! Using the debt snowball method we were able to pay off all of our credit cards in as little as 5 months! To learn how to set up your own Debt Snowball check out this post here.
If you don’t want to do money challenges it’s super easy to set up automatic transfers that will take money from your bank account and place it in a savings account. This is great set it and forget it way to save money.