Entertainment

How Does the 52-Week Money Challenge Work? Make 2021 Your Best Year!


It’s no secret that saving money can be super tricky for some people. You might think you’re doing great, but then you buy a coffee here, get drinks with friends there, splurge a little on a new outfit — next thing you know, all that “extra” money you thought you had saved is nowhere to be found! But what if we told you there’s a creative and effective way to boost the amount of money in your savings account? 

Enter the 52-week money challenge. This simple trend will not only grow your savings but also help you develop better financial habits in the future. Now that we’re officially at the beginning of 2021, it’s the perfect time to start the challenge (but don’t worry if you’re coming to the trend a little late). Curious to see how the 52-week money challenge works? Read on.

What is the 52-week money challenge?

The popular challenge is an incremental savings plan that allows you to stash away a sum of money by the end of the year. If you’re looking to build an emergency fund or save for an upcoming vacation, this challenge might be just what you need.

Article continues below advertisement

Source: istock images

In the first week, you start by saving $1, then in the following week, you save $2. In the third week, you save $3, and then you gradually increase the amount that you save as the weeks go by. Since there are 52 weeks in the year, you’re supposed to consistently put away cash until the very last week (where you save up to $52 in December). If you’re successful, you should have saved a total of $1,378.

Article continues below advertisement

You can make the 52-week challenge your own.

People have found creative ways to alter this challenge in a way that best suits them, although totals may vary (depending on personal goals). For example, there’s the constant method, where you can save $26.50 each week. And then there’s the odd/even savings method, where you can start by saving all the odd amounts first, then the even amounts. 

You’d start with $1, $3, $5, and so forth until you reach $51. Then, you’d continue by saving the even amounts, starting with $2, $4, $6, and so on. 

Article continues below advertisement

Another interesting method that people have tried is alternating. In this case, you’d alternate between the highest and the lowest savings amounts until you gradually get to the middle. So for instance, you’d save $1 in the first week, $52 in the second week, $2 in the third week, $51 in the fourth, and so on.

money-challenge-savings-1593539065601.jpg
Source: istock images

Article continues below advertisement

If you want to make it more exciting and fun, there’s also the random draw method. You can either do it the old-fashioned way and draw a written number from a hat, or use an online generator that gives you a new number each week.  

While these approaches are definitely creative, it might be difficult to keep track of your progress because they’re a bit more complicated. However, all of them can be quite effective in helping you reach your savings goal.

Article continues below advertisement



Source link