Tips from a Financial Advisor to Jumpstart Your Savings

Finding the drive to save and stick to a budget can be challenging. If you need some inspiration for your financial goals, try money-saving challenges. They might be the perfect solution. These ten creative ideas can make saving money engaging and achievable.

1. The 52-Week Savings Challenge

This challenge helps you cultivate a year-long savings habit. Each week, save an amount that matches the week number. For instance, save $1 in week 1, $2 in week 2, and so on until week 52, when you save $52. By year’s end, you’ll have saved $1,378.

For a simpler approach, set up a recurring weekly transfer of $26.50 into a savings account. You’ll reach the same total without needing to track weekly amounts.

●      Pro: A gentle way to ease into consistent savings.

●      Con: Remembering the weekly increments can be tricky.

2. The 100-Envelope Challenge

Label 100 envelopes with numbers from 1 to 100. Each day, pick one at random and put cash equal to the envelope’s number inside. In 100 days, you could save $5,050.

Don’t have that much cash on hand? Change the challenge to fit your budget. You can do this by using fewer envelopes or by spreading out your contributions over a longer time.

●      Pro: Adds an element of surprise to your saving routine.

●      Con: Managing daily cash contributions can be inconvenient.

3. The "Guess Your Bills" Challenge

Estimate your monthly expenses for bills like utilities, subscriptions, or commuting. Once you know the actual amounts, save the difference between your estimate and the real figure—whether it’s more or less. This challenge not only helps you save but also makes you more aware of your spending patterns.

●      Pro: A fun way to combine saving and budgeting awareness.

●      Con: Savings can vary greatly depending on your guesses.

4. The 1% Retirement Challenge

Increase your workplace retirement plan contributions by 1%. For example, if you’re contributing 3% of your salary, bump it to 4%. A small adjustment like this can make a significant impact over time.

●      Pro: Automated savings that grow tax-deferred.

●      Con: Those without a retirement plan won’t enjoy the tax benefits.

5. The Roll-the-Dice Challenge

Roll a die daily and save the corresponding amount. Roll a 3? Save $3. You can use a single die for modest savings or two dice to double your stash.

●      Pro: A fun, low-pressure way to save.

●      Con: Requires consistent daily tracking.

6. The Weather-Based Savings Challenge

Link your savings to the day’s high temperature. For example, if it’s 75°F, save $7.50. This playful challenge can last a week, a month, or even a year.

●      Pro: Easy to pair with your daily habits, like checking the weather.

●      Con: High temperatures could make it hard to sustain over time.

7. The Birthday Challenge

Every time someone you know has a birthday, save an amount tied to their age or a flat rate (e.g., $20). This challenge helps you remember birthdays while steadily growing your savings.

●      Pro: Spreads savings out across the year.

●      Con: May not establish a consistent saving habit.

8. The Subscription Pause Challenge

Review your subscriptions and cancel any that you can live without. Redirect the money you would have spent on those services into savings.

●      Pro: Flexible for short- or long-term goals.

●      Con: Pausing some subscriptions might be harder than expected.

9. The No-Spend Challenge

Commit to a no-spend period, whether it’s a week, month, or more. Avoid non-essential purchases and transfer the money you save into a dedicated account.

●      Pro: Great for breaking spending habits.

●      Con: Requires strong self-discipline.

10. The Round-Up Challenge

Round up every purchase to the nearest dollar and save the difference. Many banks offer this feature automatically, or you can collect the spare change manually.

●      Pro: Small amounts add up without much effort.

●      Con: Progress can be slow for larger savings goals.

Making the Most of Your Savings

Once you’ve tackled a challenge, put your savings to good use. Consider:

●      High-yield savings accounts for quick access and higher interest.

●      Cash management accounts for flexibility and investment options.

●      Investment accounts for long-term growth, keeping in mind the risks and rewards.

No matter your goals, these challenges can transform saving from a chore into an exciting journey. Give one (or more) a try and see your financial confidence grow!

Sources:

https://www.fidelity.com/learning-center/smart-money/money-savings-challenges

Disclosures:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.