Have you heard of the 52 saving challenge? Well if you haven't heard about it already, it's a quite popular and effective way to save some extra cash for a personal goal, to boost your emergency fund or just as a fun challenge for yourself.
"The 52-week savings challenge is an effective way to save some extra cash for a personal goal, to boost your emergency fund or just as a fun challenge for yourself."
What is the 52-week savings challenge?
It's basically saving a certain amount of money each week over a period of 52 weeks. A lot of people start this challenge at the beginning of the new year but you can really start it at any time and if you follow through, at the end of the 52 weeks you will end up with $1,378 in savings. How nice is that?
"Save your money and one day your money will save you".
So how does the 52 savings challenge work?
There are two ways to do the 52-week challenge -
Saving from the lowest to the highest amount
The first is by starting with $1 and then adding an extra dollar to the amount you save for every week by. e.g. Week 1 you save $1, Week 2 you save $2, Week 3 you save $3 and so on.
Saving from the highest to the lowest amount
The second way is by starting with $52 dollars and then subtracting an extra dollar from the amount you save for every week e.g. Week 1 you save $52, Week 2 you save $51, Week 3 you save $50 and so on. However keep in mind there are no rules - you can save as much as you like if you have more funds to add but your goal should be to save no less than $1,378.
How to set it up & be successful with it!
I highly recommend opening a brand new bank account (ideally in a different bank from the one you currently bank at) and scheduling your transfers a week in advance or picking a recurring date when you go into the bank or when you make a mobile deposit! It's also a good idea not to get any check or debit card on this savings account!
Benefits of the 52 savings challenge
This savings challenge is a great way to get into the habit of saving consistently especially if saving money is something that you struggle to do. You get to watch your balance grow over time and build a neat little sum of money as well. For extra credit and to save more, once you get into the swing of things, challenge yourself to double or triple up on your weekly deposits!