Money management games can be life-changing for anyone who has a hard time saving, but they’re not for everyone.
These money saving challenges might become more of a mismatch as the economy strengthens.
Today, about 47% of the U.S. population sets aside at least some portion of their income, according to the latest annual study on economic well-being by the U.S. Federal Reserve. This figure has risen steadily ever since the economy emerged from the credit crunch of 2007.
Fintech Does the Trick
People who set aside money often do so by instructing their bank — or payroll provider — to automatically pull the funds every month; anyone who wanted to save more could simply ratchet up the amount they would like to go into the desired savings.
This is especially easy to do with employer-sponsored retirement plans; and in fact, people who are committed to saving might already do that ratcheting up at the start of the new year.
Every year for at least the past couple of decades, the Internal Revenue Service has been raising the maximum annual contribution by $500.
Online loans, credit rating strategies and finding all kinds of ways to keep your financial life on point are all part of the game.
Seven Reasons You Don’t Need a Money Saving Challenge
With that in mind, here are some other pretty good reasons not to concern yourself with the money-challenge craze:
- You realize that a savings challenge won’t make money appear out of thin air, and you need to find a job before you can worry about saving;
- Your indebtedness is so great that your challenge should focus on paying it down faster before worrying about setting aside pennies — seek out a debt repayment challenge instead;
- You understand that a savings challenge is not a replacement for a budget, yet you don’t have a budget written yet — find a budget-creation challenge instead;
- You see money savings challenges as the financial equivalent of crash diets, and you don’t want to experience the financial version of regaining more weight than you’ve lost, which is what happens after a crash diet;
- You have been making the maximum allowable annual contributions to your retirement plan(s) ever since you had access to them — these thresholds exceed the example amounts put forth in most of the money challenge spiels;
- You are already on schedule to retire early, in which case you might find the money challenges to be almost comical; or
- You are already financially independent and got there by your own efforts.
If any of the seven items mentioned above applies to you, consider making other types of New Year’s resolutions.
And if at least one of the first three fits you, you would do well to include in your resolutions to finding a job, budgeting and/or repaying your debt, respectively.
Readers, what kind of resolutions are you making for the new year, if any?
Money Management Games Archive
- 10 Great Alternatives to the Classic 52 Week Money Challenge
- 10 Money Saving Challenges to Try
- 12-Week Money Challenge
- The 26 Bi-Weekly Money Challenge
- 30 Day Create a Money Saving Habit Challenge
- 365 Day Dime Challenge
- 365 Day Quarter Challenge
- The 365 Day Money Challenge Will Save You $668, a Penny at a Time
- The 52 Week Bill Challenge
- 52 Week Coin Challenge for Kids
- The 52 Week Double Money Challenge
- The 52 Week Make Money Challenge
- 52 Week Make Money Challenge Week Three Results
- 52 Week Make Money Challenge: Week Four Results
- The 52 Week Mega Money Challenge
- The 52 Week Mini Money Challenge
- 52 Week Money Challenge
- 52 Week Money Challenge 2015 Edition
- The 52-Week Money Saving Challenge Is About Much More Than Saving $1,378
- 52 Week Money Challenge for Kids
- 52 Week Save Money Challenge
- $5 Bill Money Challenge
- Alternatives to the 52 Week Money Challenge
- Bi-Weekly Money Challenge
- Build Your Own 52 Week Money Challenge Chart
- How To Create a Personal Money Challenge
- How to Save $100 in One Month with Quarters
- It’s Okay to Begin the 365 Day Penny Challenge Anytime
- Join the 52 Week Money Challenge to Save $1,400 in 2014
- Kickstart Your Savings with the Original 52 Week Money Challenge
- Money Challenge for Couples
- Money Challenge for College Students
- Money Challenge for Kids
- A Monthly Chart for the 52 Week Money Challenge
- Take the Reverse Money Challenge
- This 365 Day Money Challenge Will Save You $3,339, a Nickel at a Time