Now this savings challenge is a big one. This challenge is for those that are looking to save much more than just a starter emergency fund such as $300, $500 or even $1000. This yearly plan (or 52 weeks) is a good option for those that can put away a significant amount of money each week.
So, how does this $5000 Savings Challenge work?
Just set a weekly reminder in your calendar and take the money out of your account each week, or auto draft from your bank account. Then you put the specific amount per week into a jar, or a savings account, whichever you prefer.
$25 for the first week, $45 for the second week, and so on...
- Week 1: $25
- Week 2: $45
- Week 3: $65
...and so on.
At the end of the year, you will save $5000!
This is a great option if you are hoping to save for a large emergency fund, a vacation, a larger splurge purchase or something else that you need/want.
Some might say, well if you have that much money, why don't you just take out the $5000 all at once. The reality is that even those with larger incomes or budgets still need or like guidance. It is also easier to put away smaller increments of money at one time, rather than all at once, even if you can afford it.
Of course it will only add up to $5000 if you don't dip into it for the entire 52 weeks. Even if you only make it half way to just about 6 months or 26 weeks, you will have saved over $2500! If you need to dip into it, go ahead. Just remember replace the money you took out, if you can, so you can stick to your goal!