The blank slate of a brand new year is something I always anticipate as January approaches.
It does not matter what happened in the past. The new year is a time to place yourself off on the right foot.
Many people — myself included — try to dedicate to financial goals as we create our New Year’s resolutions. We’ve got grand visions of saving additional money… but we do not always have a plan mapped out to make it happen.
That is where the 52-Week Cash Challenge comes in.
You might have caught wind of the challenge on social websites around the start of January in years past. The premise is straightforward, however this savings undertaking gets harder as the year goes along.
The very first weekthat you save $1. The second week, you save $2. The next week, you save …
The point is to boost the amount you deposit by $1 per week before you finally save 52 per week 52, the previous week of the year. Stay disciplined and adhere to the plan, and you’ll have $1,378 on your account at the end of the year.
Can you imagine what you could use an extra $1,378? Go ahead, I’ll provide you a moment to dream.
Now let us get back to reality. While saving over $1,000 in 1 year is wonderful, the classic 52-week challenge is not great for everyone. It is good for people who like to raise the bar higher after every goal they achieve. However the others shudder at the thought of saving over $200 in the month of December.
The great news is that the 52-week challenge could be customized to function for your financial life.
We have come up with five ways to v 52-Week Money Challenge. You will still make weekly deposits into your savings account. You’ll still end up using $1,378 by year’s end. These options just are you going regarding the savings plan in different ways.
Method No. 1 — Odd Numbers Up, Even Numbers Down
This strategy is for people who’d enjoy the struggle to secure easier as the year winds down.
Here’s how it works:
- You start the year saving money on an odd-number foundation, increasing the sum per week at $2. In week one, you’ll save . In week two, you will save $3. In week 3, you are going to save . Keep the pattern going until you’re at week 26, when you’ll save $51.
- Once you hit week 27 (halfway throughout the year), then you’ll change your savings figures to numbers, starting with $52. From there, you are going to reduce the amount you’re saving every week at $2. That means you are going to save 52 in week 27, $50 per week 28, $48 in week 29 etc. Once you hit the last week of this calendar year, you’ll only be depositing $2 into your account to achieve this $1,378 total
While you will have to put away huge sums of money in the weeks of June and July, you will worry less about saving money in the end of the year.
Method No. 2 — Quarterly Breakdowns
Maybe you like the concept of saving more cash each week, but you would rather break up the time period into smaller chunks. With this approach, you’re save each quarter, which is every 13 weeks.
- Deposit $1 into your savings account the first week. So for the second week, you will deposit . For the third week, you’ll deposit $9. Keep up the pattern until you’ve reached week 13, when you will deposit $49.
- Start the next quarter of this year by depositing $ two. You’ll be in week 14 at the point. Start the pattern of adding $4 to every deposit amount till you get through week 26. So you’ll deposit $6 per week 15, $10 per week 16 and so on till week 26, when you’re deposit $50.
- Start the next quarter of the year by depositing $3. You’re now in week 27. Start up the pattern of adding 4 to the amount you deposit each week. In week 28, you are going to deposit $7. Continue this routine throughout week 39, when you’re deposit $51.
- Week 40 will be the first week of the previous quarter of the year. You will start off by depositing 4 per week, and then you’ll jump back in the pattern you created in the previous quarters. You will keep at it till you’ve deposited $52 in week 52, resulting in a total annual savings of 1,378.
Method No. 3 – Random Lottery
This method is for all those who prefer to mix things up and not follow a predictable path. You’ll choose a different dollar amount at random each week to reach the savings goal.
- Fold each slip of paper and put them in a jar.
- Blindly pick a slip of paper every week. The amount on the newspaper you pull will be the amount you deposit that week. Discard every slip of paper after you select it. Rather than doing weekly drawings, you can also produce a chart or spreadsheet which summarizes how much you’ll deposit each week. At the beginning of the calendar year, you are able to draw slips of paper for all 52 weeks and write down on your spreadsheet how much you will save yourself each week.
- This method of saving is totally arbitrary. You may deposit $5 per one week and then $50 another. There is in factn’t a method to this madness.
Method No. 4 — Semicontrolled Lottery
This procedure is a hybrid involving completely random selection and incremental savings deposits.
- Independent the slips of paper into four piles: $1 to $13 at one set, $14 to $26 in the next group, $27 to $39 in another category and $40 to $52 from the last group.
- Twist the slips of paper, and place each group into its jar.
- Blindly Pick a slip of paper out of Jar One at the first week. Pull from Jar 2 the next week, then Jar Three at the next week and Jar Four at the fourth week. Discard every slip of paper once you select it for the week. Return to Jar One per week , and repeat this pattern through the end of the year. You can also choose to perform the selection for the whole year at the beginning of the calendar year, utilizing a graph or spreadsheet to document that amounts you picked out of the jars for every week.
- With this approach, you are certain to be depositing a mix of dollar amounts per month — some at the lower end along with a few on the higher end. Although you are still incorporating some arbitrary selection, you’ll not run into the chance of making four deposits $40 within 1 month.
Method No. 5 – Steady Savings
If you thrive on consistency, this option is ideal for you.
Instead of varying the amount of money you save you can deposit $26.50 into your savings account each week for 52 months to reach that $1,378 goal by year’s end.
This can be a easy, uniform method of fulfilling this money-saving challenge. Sure, it may not be just as fun (for those of us who think saving is enjoyable in the first place), however it will get the job done.
You don’t need to think twice about just how much you will need to save every week. In fact, it is possible to automate your deposits at the beginning of the year, not think about them at all.
The Most Important Lesson: Just Start Saving
Now that we showed you it’s likely to save more than 1,000 in one year, the question is: Which strategy will you pick?
We have emphasized several possibilities, but bear in mind there are a number of other means to customize a money-saving obstacle to your own liking.
Maybe you get paid each week, and you also want to create your residue biweekly so that they fall on payday. Perhaps you’d rather commit to depositing money in your savings accounts after a month. Or maybe the majority of your income comes from advice, and you prefer to save your money on a daily basis.
You also don’t need to constrict yourself to saving 1,378. (I must confess, it is a fairly odd sum to stay with.) If your budget is tight and conserving $52 in one week seems impossible at any given time of the year, then you can cut the proposed weekly deposits . You’ll still net $689 by the close of the year. Or perhaps you’ve got a little bit of wiggle room in your budget and you wish to double the weekly deposits, which will provide you $2,756 in savings at the close of the year.
No matter how you choose to do it, the main issue is that you are consciously making the effort to save. Get in the habit of regularly putting money aside so that when 2020 rolls around, saving cash won’t even look like a challenge to you.