Money challenges are a great way to get a grip on your finances. They give you a clear target and defined process to follow, making activities like cost-cutting and money saving less cumbersome. If you’re looking for the easiest available path, consider using the $1 a day option for your money challenge in 2022. It’s as straightforward as possible. Plus, it’s incredibly adaptable, allowing you to ensure you meet your savings goals this year.
The $1 a Day Money Challenge 2022
With the $1 a day money challenge, the goal is to set aside some money in savings. In comparison to many other challenges, this option works with nearly any budget. That makes it a great way for cash-strapped households who want to start putting money aside for emergencies or higher-income households looking for an easy way to bolster their savings.
This 2022 money challenge can also be an excellent tool to teach children about saving, particularly since it doesn’t require a lot of money to take part. They can dedicate a small amount of their allowance and see their savings build.
All you need to do to target part in the $1 a day money challenge in 2022 is to put $1 in savings every day. You can use several strategies to make it happen. For example, you could transfer $1 from your checking to your savings account every morning or night or send $7 at the start of every week.
If you prefer cash, you could stash a $1 away in a jar each day. While you won’t earn interest if you don’t shift the money to a savings account regularly, it is a nice option if seeing the results of your work keeps you motivated.
As long as you are committing $1 each day to your savings, you’re nailing this challenge. Yes, it really is that simple to manage, and, in the end, you’ll have$365 set aside once you finish. As a result, it’s a solid option for anyone who prefers a money challenge that isn’t difficult to track, mainly because you know exactly what you need to do each day to succeed.
How to Adjust the $1 a Day Money Challenge 2022 to Your Situation
In some cases, setting aside $1 a day doesn’t feel like the right amount. If you’re a lower-income household, coming up with that dollar might be difficult, making it hard to complete the entire challenge. On the other side, higher-income households might feel that $1 each day isn’t enough.
Fortunately, the $1 a day money challenge is incredibly adaptable. If a dollar is more than you can afford, go with a quarter instead. At the end of the year, you’ll have $91.25 in savings. While that may not seem like a lot, it’s still a start, and that’s what matters.
If you have more money to set aside, turn it into a $2 or $5 a day challenge. With those approaches, you could end up with $730 and $1,825, respectively, giving you a decent cushion without a significant financial strain.
How to Make the Most of the $1 a Day 2022 Money Challenge
While setting the money aside is the most critical part of any money challenge in 2022 that focuses on saving, there are other things you can do to increase the value of the challenge.
For example, putting the cash in a high-yield savings account is a smart move, especially if it’s the foundation of an emergency fund. You’ll still have access to the money if you need it but will benefit from some interest.
If you already have an emergency fund, you can put the money toward other savings goals. You might want to use it to boost your retirement account, particularly if you aren’t currently maxing your 401(k) and IRA contributions. Investing it through a brokerage account is another option that’s worth exploring if you already have your main savings and retirement accounts handled.
Combining the $1 a Day and 52 Week Money Challenges
There’s nothing to say that you can’t participate in several money challenges at the same time. Maybe you like the simplicity of the $1 a day challenge but also want to boost your savings by adding in the 52-week money challenge.
For the $1 a day challenge, you’ll use the process above. With the 52-week challenge, you’re trying to complete a series of different deposit amounts. Every week, you’ll set aside an amount between $1 and $52, with each number in the list being used one time. While it’s more complicated, the ability to choose different amounts gives you some flexibility, allowing you to adjust your savings in response to life events.
By completing the 52-week challenge, you end up with $1,378 in savings at the end of the year. Combine that with the $365 you get from the $1 a day challenge, and you’ll have $1,743 saved – plus any accrued interest – by the start of 2023.
Turning a Savings Challenge into a Debt-Conquering Challenge
If you’re battling against high-interest debt and currently have an emergency fund, then you can turn the $1 a day savings challenge into a debt-conquering one. Simply send that money toward your highest interest debt instead of putting it in a savings account.
For simplicity, you can add the total amount you would set aside each month to your regular payment. However, if seeing the balance drop more often keeps you motivated, consider sending in the extra cash more often. You could make additional $7 payments every week or even shuttle over $1 every day. As long as there aren’t any fees associated with making payments, use whatever approach feels best. However, if there is a processing fee, stick with adding the amount to your usual payment.
Are you planning on taking part in a money challenge in 2022? If so, which one (or ones) will you use, and what goals do you hope to achieve by participating? Share your thoughts in the comments below.
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Tamila McDonald has worked as a Financial Advisor for the military for past 13 years. She has taught Personal Financial classes on every subject from credit, to life insurance, as well as all other aspects of financial management. Mrs. McDonald is an AFCPE Accredited Financial Counselor and has helped her clients to meet their short-term and long-term financial goals.