Did you know the 365-day dime challenge can help you save more than $6,000 in a year?
Saving money daily can be difficult, but it isn’t impossible. As we plan for a new year, money goals should be at the top of our list. While we should always be striving to improve our financial situation, New Year’s resolutions are a great way to enforce this action. If you’re looking for a way to start saving, a money challenge can help.
What is the 365 Day Dime Challenge?
The 365-day dime challenge is a money challenge that prompts you to save money daily. Each day, you put aside .10 cents with the corresponding day of the challenge. For instance, on the first day, you save a dime, .20 cents on the second day, .30 cents on the third day, .40 cents on day four, and so on. Place a jar in a very visible area as a physical reminder to save every day.
In just the first 90 days, you will accumulate $409.50. Considering that 46% of Americans surveyed by the Federal Reserve cannot cover a $400 emergency without borrowing money, this is important.
Why the 365 Day Dime Challenge?
The 365-day money challenge has a few variations, from the penny challenge to adding an extra quarter a day. The penny challenge prompts you to save $668 in 365 days. The quarter challenge, on the other hand, adds up to $16,698.75 after a year. If the penny challenge does not match your goals enough, but the quarter challenge seems to be a little too hard to accomplish, the 365-day dime challenge may be just for you.
Here’s a break down of what to expect to contribute each day:
As you can see, you’ll be able to save a total of $6,679.50. If you break this down daily, you’re only setting aside $18 per day over the course of the year. This seems much less intimidating than the $44 daily average from the 365-day quarter challenge, especially if your finances are not as strong as you would like.
If you are up for the challenge, you can download the chart here.
Tips for Successful Saving
In order for such a challenge to work, you need to be diligent and consistent. The point is to save daily and create a habit that will benefit your finances for years to come. Plus, it’s a great way to build an emergency savings fund, which everyone should have.
If you don’t think you will be able to dedicate an average of $18 per day in 2017, try adjusting to a level that is comfortable. For instance, you could start with 30 days at a time, starting the challenge over at the end of every 30 days. This would come out to $46.50 per month in savings, $1.55 per day, and roughly $558 total for the year. However, you might be better off doing the penny challenge where you will save a little more.
Also, if money challenges are too much of a hassle, you can build your emergency fund with an app like Empower. This app analyzes your account, and slowly withdraws and saves small amounts at a time. It’s easy to download and install, and because it’s automated, you won’t even notice the money is gone until you check how much your savings has grown.
Will you be trying a money challenge in the new year? Share your comments with us below.