2007 $20 Challenge Information

[jeffrey]

$20 Challenge 2007

It seems that those who participated in the 2006 challenge would like to continue the challenge in 2007. The rules are going to be basically the same and those that would like to continue instead of starting over are free to do so.

More and more people that visit the forums are asking what exactly the $20 challenge is. Basically it is a challenge of taking $20 to begin and using it to try and create money in some way that you haven't done in the past. The goal is to get you thinking about different ways that you can earn and save money that you aren't currently doing. That being said, these are general guidelines and you are free to make your own rules as you want them to apply to your challenge. If you choose to make adjustments to the guidelines, please take the time to explain exactly what you're doing and how it differs so that those reading don't get confused. For example, some have indicated they would like to continue their current challenge from 2006.

<b>Where</b>: To participate, simply <a href="http://blogs.savingadvice.com/">Begin Your Own Personal Finance Blog</a> and make sure to create a category with the name "$20 Challenge"

<b>Length</b>: 1 year, but anyone can join at any time. Start date is January 1, 2007 with an end date of December 31, 2007

<b>Starting Amount</b>: $20

<b>Goal Setting</b>: On a quarterly basis (every 3 months), more often if desired. This will allow both you and the readers to reflect on what you've accomplished and help keep you on track toward your final goal.

<b>Final Goal Amount</b>: To be determined by each individual

<b>Prizes</b>: This year there will be small cash (or equivalent) prizes (yet to be determined) for the best challenges as voted by the members (not necessarily who makes the most) of the forum with a minimum of $200 being distributed. If finances permit, there will also be some random prizes given.

<b>Other Notes</b>: These earnings should come from ideas beyond what you would have normally done. The goal of this challenge is to motivate you to earn a bit of extra money when you usually would not have and get you thinking about different ways that you can earn money.

If you have any questions or need more specific guidance, feel free to leave comments or questions here.

[calexxia]

I'm in

[PRICEPLUS]

Thanks for posting it again Jeffrey!

[rduell]

I'm excited about this. I've been trying to think of ideas all day.

[Ima saver]

I am in also! It really helps to start the year off right!

[frugalmomof1]

I'm in...just have to work out the details.

[lrjohnson]

Originally Posted by jeffrey

$20 Challenge 2007

These earnings should come from ideas beyond what you would have normally done. The goal of this challenge is to motivate you to earn a bit of extra money when you usually would not have and get you thinking about different ways that you can earn money.

I'd really like to see the above guideline followed, it makes it much more interesting. When people count every coupon used towards the $20 Challenge savings when they already used coupons, or put money from a cancelled mail order item into savings, it doesn't seem like a new idea at all. Now if someone doens't use coupons at all starts using them, then it's exciting. And that means the more furgal we have been the more creative we need to be.

[Ima saver]

Well I was never a coupon user before, but I think it is important to do this. If you use a coupon or a store card, it will tell at the bottom of the receipt how much you saved on that purchase. I take that actual cash (in dollars) and physically add it to my challenge money. This is not just on paper, but the real cash goes into my cash box.
I never did that before! It is amazing to me how much it adds up.

[lrjohnson]

Originally Posted by Ima saver

Well I was never a coupon user before, but I think it is important to do this. If you use a coupon or a store card, it will tell at the bottom of the receipt how much you saved on that purchase. I take that actual cash (in dollars) and physically add it to my challenge money. This is not just on paper, but the real cash goes into my cash box.
I never did that before! It is amazing to me how much it adds up.

If you look at the dollar savings on the coupons or storecards, it will not actually tell you how much you saved in all cases. You have to first decide whether you would have bought the item at all, without coupon or storecard. Then you have to figure out what the generic would have cost, or making from scratch. If I compare the cost to generic, or not buying it all all on my club card, I may be saving some money, but not at all what my receipt says.

[buddy72192]

Thanks!

[Broken Arrow]

Let's get it on!

[PRICEPLUS]

Come on BA into savings with that money!

[Broken Arrow]

Well, I can leave it in there until I figure out what to do with it. No harm in that, but I want do something beyond that though. Preferably something with a much higher gain and risk that I haven't tried before.

[nanamom]

I was going to try this last year but felt I was too new. This year I am in. I want to try to take 20 and turn it into more. I don't want to do the coupon change thing. (I already do change for the future kitchen remodel) I'll put a new category on my blog.

[skinnybudget]

I'm confused...do I start with $20 put somewhere and try to increase it? Or try to save up $20?

[Broken Arrow]

I believe it's the former.

[jeffrey]

Originally Posted by skinnybudget

I'm confused...do I start with $20 put somewhere and try to increase it? Or try to save up $20?

Broken Arrow is correct. You start with $20 and then go from there...

[Ima saver]

irjohnson, I never buy anything on sale unless it was on my grocery list. Plus, I don't count things like buying clothes or shoes on sale. I only count the things I really need, like food, medicine, things I use all the time. This week I need hair coloring and I have a $2 off coupon for my brand.

[nancy58]

I'm DEFINATELY in!!! So excited about doing this!!!! I'll be starting my blog also. Thanks Jeffrey for starting this again!!

[lrjohnson]

Originally Posted by Ima saver

irjohnson, I never buy anything on sale unless it was on my grocery list. This week I need hair coloring and I have a $2 off coupon for my brand.

When it is for an item you already buy, same brand, I can see it as a savings. Most of what I have as club card savings wouldn't fall under that, though. I won't pay more than $2 a pound for cheddar. Sometimes at Safeway I can get it for $2 using the Club card. The receipt will tell me what I've saved geeting the buy one get one free, but I have saved nothing. And even when it is a savings, it's not all the receipt says. I spent a dime less on a 2liter bottle of club soda than I normally spend, but according to my recipet I saved a $1-as if I would ever pay that much for club soda!

I agree there are savings in club cards and coupons. I don't agree that the true savings is reflected on the "You saved..." section of the receipt.