365 day challenge

Save Nearly $500 with the 30 Day Money Challenge

January 6, 2015 By Jeffrey Strain 8 Comments

Save $465 with the 30 day money challenge

One of the main issues some people have with the 52 week money challenge is the length of time it takes to save the money. That challenge is a year long commitment, and there are some who would rather focus on saving money in a shorter period of time. For those people, the 30 Day Money Challenge may be the perfect solution (click on the image above to print out the challenge).

Build Good Habits with the 30 Day Money Challenge

The challenge works in the same way as the 52 week money challenge, but instead of spreading out over 52 weeks, it’s done in a period of one month. On the first day you save $1, on day two you save $2 and on day three you save $3. You continue doing this on a daily basis until you reach day 30, when you save $30. By following this schedule, at the end of the month you’ll have saved $465. Even better, you will have established a solid savings habit that you can use to save even more money during the following months if you decide to.

Find Your “Hurt Point”

One of the big advantages of the 30 day money challenge over the 52 week money challenge and the 356 day money challenge is that you’ll learn where your savings “hurt point” is much more quickly. That is, when the amount you’re saving turns from being easy to being a struggle to save.

While it may be easy to save $1 the first day, there is going to come a point during the 30 days when you realize saving a certain amount is difficult (or impossible). Finding out this hurt point quickly shouldn’t be seen as a failure of the challenge, but a great piece of information so that you can develop a challenge that works the best for you. While it could take months to find out the hurt point on the 52 week challenge, you’ll know what it is in less than a month with the 30 day money challenge.

The 30 Day Money Challenge is Highly Flexible

Another great aspect of the challenge is it doesn’t need to be done at the beginning of the year. You have 12 opportunities each year to begin as each new month gives you another chance to work at the challenge. You may want to do it 12 times in a row, or you may have certain months when you feel you have a better opportunity of completing the challenge. It gives you a bit more flexibility throughout the year to save during the times you’re most motivated.

The shortened period of time also doesn’t make the challenge appear to last forever. Many people have trouble focusing on something for an entire year, while they don’t have as much of a problem remaining engaged for 30 days. While this isn’t true for everyone, those who like to focus on shorter periods of time may find this money saving challenge geared more toward the way they like to save money.

The 30 Day Money Challenge is simply an alternative way to save money which will appeal to a certain group who want to begin saving. If it sounds like it would be a better fit than the other challenges out there, give it a go. As with all these challenges, the most important aspect is finding something that works for you so you can turn saving money into a lifetime habit.

For those of you who feel this might be too ambitious to begin with, you can also try the 30 day quarter challenge which uses the same principle, and will net you just over $100 after 30 days.

Supplement With Passive Savings

The past few years have been great for automated savings apps. A couple of good options you should check out are digit.co and acorns.com. Between the two, digit.co is certainly the most well known. This is because it is pretty much the ideal passive savings tool. You just create an account and let digit.co read your checking account’s transaction information. Digit will deduct a small amount – not enough to bounce any checks – and will sweep the results into an account you control. Pretty much all you need to do is sit back and watch the savings build up. Click here to learn more.

The 365 Day Money Challenge 2015

January 1, 2015 By Jeffrey Strain 4 Comments

Save money with the 365 day money challenge

The 52 week money challenge has become a popular method for saving money over the past couple of years, but it’s not the only way to increase one’s savings. For some people, the weekly method simply doesn’t meet their savings style. They need to concentrate on savings small amounts on a daily basis. Last year I had someone come to me with exactly that issue. She had attempted the 52 week money challenge, but failed and wanted to know if there was a challenge she could try that would help her get into a savings habit by doing it daily.

For those who need to begin the savings game, but aren’t confident they can do so because of past failures, the 365 day money challenge is the perfect place to begin. This is because it requires the participant to save a small amount of money each day, but the amounts are so small that even a child could do it. Since it is being done on a daily basis, there’s a much better chance the savings becomes a habit.

The 365 day money challenge concept is simple. A year consists of 365 days, so in the challenge, every day before you start your day, you are required to pay yourself. This is mandatory. Of all the things you pay on a daily basis, learning to pay yourself something is vitally important. For those who aren’t used to putting aside money for their future, the best way to instill this habit to to begin with small amounts. Conventional wisdom says it takes 3 weeks of doing something daily to form a habit, so making saving as easy as possible makes sense for the first 21 days to ensure success. In fact, it doesn’t hurt to spend more time in this habit-forming stage to make sure the habit truly takes hold.

(click on image to enlarge and print)Each morning when you start your day, you’ll pay yourself an amount of your choosing before you do any other activity. You can set the payment amount anywhere between one cent and $3.65. After you make the payment to yourself, you cross out the corresponding box on a 365 day money challenge sheet. The next morning, your payment can match any of the remaining amounts on your chart. You keep doing this day after day, each morning for a whole year. By the time you are done with the chart, you will have an extra $667.95 in savings. What’s more, you’ll have the financial habit of paying yourself to create savings, which will greatly reward and benefit you for the rest of your life.

There are two essential steps which will help you do the challenge. The first step is to print your challenge sheet, and place it somewhere where you will see it every single morning. You want to place it somewhere where it’s impossible to avoid. A good example would be to place it on the mirror in your bathroom. This way, it’ll be the first thing you see in the morning, before you even brush your teeth. Another good place would be right next to your coffee maker if you have a cup of coffee every morning. It should be in your sight at the beginning of each day so there’s no way to “accidentally” forget about the challenge.

The second step is to add a concrete action of actually paying yourself every morning. You need to do more than think, “Oh, I have that money so I’ll transfer it into my bank account the the end of the week.” You should physically go into your wallet or purse and place that day’s payment to yourself into a jar, or some other type of container specifically chosen just for this challenge. This container should be in the same spot where you have your challenge sheet so you’ll see it every morning when you get up. You’re making a payment to yourself, and it’s just as important as any payment you’d make to a store, bill or service provider. The truth is, it’s even more important, and it’s definitely the most crucial payment you’re going to make each day. Why? Because it’s a payment devoted to establishing your financial future.

For people who have had a hard time getting their finances together, the 365 day money challenge has advantages over the 52 week money challenge in two significant ways. The first is that anyone, no matter what their financial situation may be, can jump right in because anyone can afford to participate no matter what their current financial situation. If you can only afford to pay the absolute lowest amounts for the whole first month, you will have only have to find $4.65 after 30 days. It does not take a huge amount of money to receive the benefits the 365 day money challenge has to offer.

The second advantage is the 365 day money challenge is done each day instead of weekly. This requires you to think about saving money every day. By thinking about and taking a savings action daily, you are in a much better position to make saving money into a habit. Even if what you save each day isn’t a large amount, you benefit from thinking about it and taking an action on it.

By the time 2016 arrives (although it’s okay to begin the challenge at any time), you will be naturally conditioned to paying yourself first, and saving money will have become a part of your daily routine. On the other hand, only thinking about saving your money once a week makes it more difficult to form the savings habit. Since it takes 21 days of action to form the habit, instead of having that foundation after the first month, the 52 week money challenge will take about 5 months for the habit to form since the action is only being done once a week.

If you tried the 52 week money challenge in years past, and you were unable to finish it for whatever reason, give the 365 day money challenge a serious try. The same goes for any friends you have you have tried and failed. A $668 emergency fund is a great place to start when building your savings, but even more importantly, you’ll be in a position to save a lot more money in the years to come.

Zero Effort Money Saving Hacks

In recent years there has been an explosion in smartphone apps designed to help people save money and keep better track of their finances. One great savings app is digit.co. What digit does is take a look at your savings account balances and then makes small withdrawals to deposit into savings. It is easy to install and makes saving virtually effortless. Check it out at digit.co.

The 365 Day Money Challenge Will Save You $668

January 1, 2014 By Jeffrey Strain 97 Comments

The 52-week savings challenge has gained quite a lot of popularity as a way to save money during the year, but it’s not the only money challenge.

History of the Challenge

There was a woman who said she loved the concept of the 52-week money challenge, but she couldn’t do it. She explained that each week, when she needed to put aside the money for that week, she would panic.

The first couple of months were okay because the dollar amounts were low, but as they started to increase, the weekend became a time of terror because she knew she needed to put away money that she didn’t have. She ended up giving up because the challenge was causing more stress than it was worth. She asked me if there was a different challenge that might be able to help her.

It became clear what she needed. She liked the concept but dreaded when it was time to put money away because she didn’t have it when the week ended. What she needed was a challenge that forced her to save money before it was gone. She also needed to save smaller dollar amounts. Doing it this way would help so that she didn’t panic. The 365-day money challenge was born.

How the Money Challenge Works

The concept of the challenge is simple. There are 365 days in the year. Every day before you go out, you need to pay yourself first. This step is vitally important. The woman panicked because she didn’t have the money at the end of each week. What she needed to do was pay herself first.

After printing out the challenge sheet, you need to place it somewhere where you’ll see it each morning – someplace like on the mirror in your bathroom. It needs to be visible and in your face each morning, so you’ll be less likely to forget about it.

Each morning when you get up, you need to pay yourself some amount before you do anything else. The payment can be anywhere between a single penny to $3.65. Once you have made that payment to yourself, you “x” out the box on your chart. Your next payment the following morning can be any of the remaining amounts on the table. You continue to do this every morning for the entire year. When finished, you will have saved $667.95. Even better, you will have formed the essential financial habit of paying yourself first, which will be an asset for the rest of your life.

365 Day Money Challenge (click on image to print)

Get In The Habit of Paying Yourself

Studies have shown that it can take as little as three weeks or as long as 254 days to form a habit. Therefore, it’s important to make saving as easy as possible for as long as possible. Making payments to yourself or transferring the funds for a year satisfies all the requirements to make a habit. As your income grows, continuing this habit will help you build wealth. By the end of the year, saving money will be a natural part of your day.

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Advantages of the Challenge

There are a few advantages to this savings challenge.

The first is that you’re starting with such small amounts that anyone, no matter what their current financial situation, can participate. If all you can do is pay the absolute minimum amount each day for the first month, you’re only out $4.65 for 30 days.

Additionally, $668 is an excellent start to an emergency fund. Even more important than that, you’ll put yourself in the position to save much more money in the following years. If you saved your money in a high-interest savings account, you would earn compound interest for an even higher balance.

If you want more of a challenge, increase the daily values. If you want to try another substitute, here are some challenge articles that might be a better fit:

Twice a Month (Bi-Monthly)