Let’s face it – saving can be tough.
Today I want to introduce several savings challenges to help you on your path to building your personal wealth. I will be covering four challenges with varying difficulty (of course you will need to take into account your total monthly income – but as long as you’re saving more and spending less – we can call that a success). The challenges will increase in difficulty – the easiest will provide the least savings and the hardest will provide the most savings on completion. I would suggest that you make the transfers for these challenges automated through direct debit (unless you’re one of the few with insane self-control).
I will start with an easy one “The Rounder”.
In this challenge whatever you spend – you will round up to the nearest pound. The difference will then be transferred into a separate savings account.
It’s as simple as that.
So simple in fact – most banking apps now offer this feature as part of their service. You will usually find the feature in your account settings under a scheme such as “Save the Change” (Halifax Banking) or “Coin Jar” (Monzo Bank).
For this challenge I cannot provide you with a total savings amount as it depends the number of transactions – but as you can imagine:
Frugal = You’ll be lucky to buy a filter coffee.
Regular Spender = More than the frugal individual – but don’t quit your day job.
The Quarter Pounder
Now let’s up the ante.
“The Quarter Pounder” challenge will require you to save a pound a day for 365 days.
Here’s the catch, every “Quarter” (3 months), you have top up your savings with an extra £33.75 – on the last day of the month (including the one pound on that day – so £34.75).
Example: 1+1+1+1… 34.75+1+1
If you can hack this challenge you’ll end up with:
Monthly Savings: £31 (based on a standard 31 day month)
Annual Savings: £500 (£501 in a leap year)
You could buy 185 Maccies Quarter Pounders with that kind of money -please don’t…
The Weekly Warrior
Now lets get serious.
With “The Weekly Warrior” your challenge will operate on a weekly cycle (as the name suggests).
Starting with one pound on the Monday and adding a pound everyday until the Sunday (where you will save seven pounds).
Example: 1+2+3+4+5+6+7 = £28 (weekly savings)
Stick to this challenge (automate it so you don’t have a choice) and you will have the following:
Monthly Savings: £112 (dependent on the month)
Annual Savings: £1456
This challenge is not for the faint-hearted.
“The Accumulator” can save you some serious cash (I am currently doing this challenge).
Everyday you will save the value equivalent to the date. Starting on the 1st equalling £1.00 until the end of the month 30th where you will save £30.00.
This challenge operates on a monthly cycle.
Manage this and you will have the following:
Monthly Savings: £496 (based on 31 days)
Annual Savings: £5738 (this will be £5767 in a leap year)
Savings Challenge 2020
Go out there and make 2020 your year! The challenges have been set – let us know which one you are going to take!
Not sure where to start with investing your time and money in assets?
Check out the Invest area of The Long Commute.
Need to free up some extra cash and gain a secure foundation before you start to invest in assets?
Check out the Saving area of The Long Commute.
Need to increase your income and build another stream of income?
Check out the Hustle area of The Long Commute.