Like any other habit, saving money requires consistency, determination, and discipline to stay on track. But if you make it a game, it suddenly gets a lot more fun!
Is your goal to save more money? Are you wondering where you’ll get the money to save $5K?
Well, you’re in luck.
Today, we’re going to give you some tips to help you save $5K in one year using a 52-week money challenge. And you don’t have to wait for a new year to start – you can do it anytime!
Before embarking on any type of challenge, though, it’s always a good idea to pinpoint your ‘why’.
What do you want to gain with this money? How will you use it? There may be times when you feel like giving up on this challenge altogether, so be clear about what you really want.
Saving $5K can help you do the following (and much more!):
- Pay down large bills to relieve money-related stress
- Have a bigger buffer while you hunt for your dream job or start a business
- Take a vacation
- Buy a used car with cash
- Invest for your retirement
- Support organizations you’re passionate about
As you can see, there are a lot of things you can do with a little extra money. Think about what drives you and use it as motivation to start the challenge this year!
The 52-Week Money Challenge
As we’ve already said, this 52-week challenge is a plan to help you save $5K in just one year.
Okay, cool. But how does it work?
That’s the fun part.
You’ll start by saving just $20 during the first week. That’s doable, right?
Then, during the second week, you’ll advance to $35 and then to $45 in the third week. The amount saved each week gets progressively higher than the previous week.
Within two months of doing this, you’ll already have saved about $400, which can help you stay motivated! You can print out your own free plan here.
Keep in mind that starting with relatively small amounts is crucial to help you meet your weekly goals and adopt a savings mindset.
The goal here is to prepare you for heavy lifts that are in the offing in mid-year. So, the challenge starts slowly and builds a crescendo around mid-year before gradually slowing down again.
So, you might be thinking, “Okay, this sounds amazing. But how am I supposed to actually put aside this much money?”
Good question.
To help you succeed with this challenge, there are certain budget cuts you should consider making. These may include:
- Canceling unnecessary subscriptions (like Netflix, Amazon Prime, etc.)
- Increasing insurance deductibles
- Canceling unused gym subscriptions
- Selling items you no longer use on sites like Poshmark
- Saving money on entertainment by borrowing books and DVDs from the library
- Starting a side-hustle or gig
As you can see, there are two ways to help you save $5K: You can reduce your expenses, or you can find a way to earn more money on the side.
Ideally, you should do a little bit of both! This may sound hard, but it really isn’t. If you turn it into a game, it gets a lot easier.
Here’s a great way to do that: Invite a friend to start the challenge with you! That way, you can both compete and motivate each other to stay on track.
Final Thoughts
If you’re not used to saving money on a regular basis, don’t worry – money challenges are the perfect place to start.
To make this challenge manageable, you may want to set up a separate bank account that you use for the challenge and nothing else. This can help you track how much you save every month, and it also makes it easier to avoid accidental withdrawals.
