Is your paycheck gone too soon? Are your credit card bills piling up? Need a way to boost your savings that will actually work? Money saving challenges are an empowering and effective way to grow your savings. They are super achievable and the small wins really add up and increase your motivation!
These challenges are just a one-month commitment and they are super fun to follow. I can tell you one thing, saving can be addictive! Seeing your account grow will definitely motivate you to continue the challenges.
So whether you are saving up for an emergency fund, a big purchase or for investing purposes, these 5 challenges will help you reach your goals!
How do money saving challenges work?
Set a goal: Choose one of the challenges below and set your target savings amount. Use the savings goal mentioned below as a guideline and feel free to adjust the numbers based on your finances.
Make yourself accountable: This step is equally important! š Tell your friend or partner about the challenge so that you remain committed and focused on your goal!
Track your goal: Use the free printables to keep track of your progress! I love using trackers for everything, I hope these printables motivate you to keep going. ā¤ļø
1. Progressive savings challenge
This is the money saving challenge that helped me break the cycle of living paycheck to paycheck! It’s amazingly simple and effective.
First, pick a non-essential category like Entertainment. Next, find out how much you spend on average in the Entertainment category. This includes movies, salon, bowling, books, travel etc. Let’s say you spend $400 a month.
Cut that average expense by 20%. Challenge yourself to stay below $320 for the next month. You may think that’s just $80 saved but at the end of the year, that’s an extra $960 in your pocket! For an added challenge, cut 20% off $320 for the following month!Ā
This progressive savings method is the most effective way to boost your savings without giving up on your lifestyle. This challenge saved me $8400 in my first year!
2. No shopping challenge
Set a 3-month or a 6-month challenge to not shop for clothes. If you’d like to take it up a notch, challenge yourself to not buy any non-essential, fun items. I’m talking about the random things you didn’t need until you saw it on Amazon! Example: new planter, new set of bowls, wall dĆ©cor or other items on a flash sale!
The purpose of this challenge is not to go 6 months without spending a dime and then shop like it’s Black Friday! The point is to use this time to become more conscious of where and how you spend your money, and what value those purchases bring to you.
Iām 8 months into this challenge! And I now realize how wasteful fast fashion is, both from an environment and investment perspective. Fashion trends fade in year or sometimes just after a season! Weāre also guilty of buying a cute, new outfit just for that one special event. Or maybe because itās on sale. All this money spent adds up quickly! šØ
Try it out, you’ll be surprised by how much you can save! Even after your challenge, invest in versatile clothing from slow fashion brands. They are made to last!
Here’s my best hack for this challenge!
Unsubscribe from promotional emails. I was such a shopaholic and the main thing that fueled me was the daily emails from Zara, Sephora, Banana Republic, H&M and so on. So say your goodbyes and unsubscribe! If you really need something, youād remember to buy it without seeing promotional emails!
Also remove those bookmarks and avoid window shopping in the mall or on your laptop ājust for funā. Without all these reminders around you forcing you to think about shopping, it is pretty easy to do this challenge!
3. No eating out challenge
On average, we eat out 5.9 times a week! And an average family spends a whopping 50% of their food expenses on eating out.Ā
Dining out is the top favorite indulgence! After a long day at work, you just feel like treating yourself to some takeout. But this is one of the biggest drains in your budget.
For this money saving challenge, cut back on eating out for a month! Use the free printable to track your progress.
New habits take time to form. Instead of completely denying yourself, try going 1 or 2 weeks without takeout and then have a cheat day. This way, you can make your progress long-lasting and reduce the number of times you dine out.
Try these better than takeout recipes, that literally need just 30 minutes of your time! You could make some extra while preparing your dinner and have it for lunch the next day!
Pro tip š: Uninstall food delivery apps from your phone when youāre trying out the No Eating Out challenge. Out of sight, out of mind!
4. 10 weekends saving challenge
This one is straightforward and you can see big results when followed through. Every weekend, transfer $100 from your checking to your savings account. Repeat this for 10 weekends and you have yourself a neat $1000 savings!Ā
You could use this as an emergency fund, fun money to travel somewhere nice, or as a sinking fund for whatever you might need.
Why weekends, you ask? š¤
Because thatās when we tend to go out and spend money! If you transfer your money to your savings account at the start of your weekend, youāll be building your savings fund AND it will make you more conscious about your expenditure over the weekend. That’s a win-win!
There are plenty of free or low-cost activities that you could do with friends and family. Try picnics by the beach, game nights, brunch on the patio, road trips, camping or hikes!
5. Eco friendly challenge
I absolutely love this challenge, it’s very dear to me! š„° Contrary to how it looks, sustainable living can actually save you thousands and it’s so rewarding!Ā This money saving challenge includes my top five eco friendly tips that helped me save $5000!
1. Plan your meals before you shop
Planning your meals in advance and creating a curated grocery list based on those meals can save you $150 a month. It helps you buy exactly how much you need for the week so you’ll never have to throw away rotting produce or have an overstocked pantry. Thatās $1800 in annual savings!
2. Bottled water vs. water filters
Using a water filter pitcher like Brita, would cost you $70 in the first year ($35 for a new pitcher + $30 for replacement filters). Whereas buying bottled water would cost you $730 annually ($2 per day for 3 liters of water). Thatās $660 saved.
3. Upgrading your phones
Replacing a battery will cost you about $60 to $100. Whereas upgrading to the latest flagship phone can set you back $1000! Thatās another $900 saved. The vicious cycle of upgrading gadgets and discarding e-waste is a massive problem for our environment.
4. Low-flow showerhead
Switching to a low-flow showerhead can reduce your water consumption up to 50%! This could easily translate to a 40% savings on your monthly water bill. That’s $360 saved annually.
5. Cut back on takeout lunches
Considering $10 per meal, it can cost you $2600 yearly to buy lunches on weekdays. You could easily shed at least half of that cost by spending 15 minutes to prepare a quick meal like a sandwich the night before. Thatās another $1300 saved annually. Takeout and its single use plastics add to the growing plastic pollution.
Total money saved = $5020Ā
EnvironmentalĀ savings: 12 months of produce waste, 2190 plastic bottles, electronic waste, 2000 gallons of water, 262 takeout boxes & disposable cutlery. And of course, you would have also eliminated the water, air and soil pollution that goes into producing all of this for you!
If you like these eco friends tips to save money, I’ve got more for you!
Parting thoughts
Learn how you can build up your savings with these 40 genius tips to save money without joining the frugality club! š
But the most effective way to save money from your paycheck regularly would be to tackle your budget. Before you roll your eyes, let me just say that the Progressive Budget takes just 15 minutes to set up and it has free printables to help you out!
Lastly, pick your favorite challenge and let us know what you will be trying out in the comments below! I’d love to hear about your progress! š