How would you like to save precisely $1378 in one year without any great pain? Jon Gorey posted an article on this on The Simple Dollar blog for the new year. The method is simple and starts with just $1. He calls this plan the 52 Week Money Challenge. [photo: http://mentalfloss.com/article/54443/why-do-we-put-money-piggy-banks]
You save $1 the first week, $2 the second week, $3 the third week and so on. On the last week of your year you save $52 and you have then saved a total of $1378. It is like a game and you just increase the amount $1 per week. At the end of the year you have an emergency fund or vacation fund.
Because the increase is incremental and small it makes it almost painless.
You can vary this game in any number of ways. If the growth is too steep for you then you could increase the amount by 50 cents per week, though it would reduce your final amount accordingly. You could also save more than a $1 to start. It just depends on what your budget will allow.
Gorey observes: “The beauty of the challenge lies in its simplicity and the habitual momentum it can create — not to mention the big chunk of change you’ll end up with. It’s a simple, effective way to build your first emergency fund or to save up for next year’s big winter vacation. And unlike so many financial endeavors, getting started isn’t at all intimidating — just about anyone can manage to save one dollar in a week.”
He also provides tips on how to vary this plan and how to use the same system to fulfill other goals, such as improving your health. The idea is to do something every day or every week and keep it up.
No matter how you do it the important thing is to start saving. Once you establish that habit you will continue to build wealth. You will also learn how to get by with a little less spending money each week so you can save.
Read Gorey’s post here.
Learn how to manage your money, eliminate debt and build wealth in my book, Your Financial Success.
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Daniel R. Murphy
Educating people for building wealth, adapting to a changing future and personal development.