“I’m gonna save up for my future”, said everyone, literally. But sticking and dedicating to it is a different story.
So, to start of your new year, we introduce you to the 52-week savings challenge.
Most of those who actually saves would have a stagnant and consistent amount but what if we told you that your target savings amount will increase every week, could you handle it?
That’s the purpose of the 52-week challenge, the money challenge, is believed to be originated in 2013 from a Facebook group known as “Kassondra’s 52-week Money Challenge,” created by Kassondra Perry-Moreland, a personal finance enthusiast.
To start off the challenge, you start by saving RM1 on Week One; then RM2 on Week Two; Week Three you save RM3, and so on., until you reach the last week of the year, Week 52, which by the point of time you’d save RM52. Your total savings by the end of the year would add up to RM1,378. But of course, you could increase the amount to your liking and be sure to follow the steps and you will see the difference.
According to Michael Kitces, a Certified Financial Planner professional and director of planning research at wealth management firm Pinnacle Advisory Group in Columbia, Maryland, “The nature of this challenge is to stick to a schedule.”
“The point to the saving challenge, and why it’s as powerful as it is for people who aren’t used to saving, is what happens when you start adjusting incrementally over time,” he says.
He also added, “There’s an “infinite” number of ways to tackle the 52-week money challenge. You can save any amount you want, be it RM115 a month; RM30 or RM40 a week; the arrangement is entirely up to you.”
A financial educator and author of “The One Week Budget”, Tiffany “The Budgetnista” Aliche says that, “I could’ve just automated my savings rather than going through the hassle of putting money in a tangible piggy bank.”
“What you could’ve done differently is, instead, use your bank’s online system and have that money automatically transferred,” she says.
Aliche also added, “What’s most important is where you transfer (the money) to. “You have to make your money inconvenient, because inconvenient money does not get spent.”
She further suggest that you open a savings account with an online-only bank. Simply because, it would take a few working days for the money to be transferred to another account, which will stop impulse spending because you literally cannot spend on impulse.
If you find it overwhelming working your way up to larger amounts toward the second half of the year, especially when your shopping sense is tinggling, try reversing it, Aliche suggests.
“That would make it so much easier for you to stick to because it gets easier and easier as the challenge goes along.”
So, intrigued yet? Set your calendar to remind you to keep the challenge as a priority and be sure to have an end goal for your newfangled wealth.
“What do you plan to do with that amount you’ve been saving? And what’s even more important is that — Will you still be maintaining the progress or the challenge once you hit the 52 mark? Why not from now, try a new way to save every week for a year and you’ll be surprised at the end results. if you’re unsure about how this works, click on the button below and start saving! Let us know how you’d do it below!