52-Week Money Saving Challenge: How to Save $5,000 This Year

Introduction 

The 52-week money saving challenge 2021 is an infamous money-saving challenge that can help people achieve a number of savings goals within one year. In this instance, the 52 week money challenge $5000 will help you save $5000 by the end of the year. If you have just come across this article and are probably in the middle of the year or halfway through the first or second yearly quarters, do not be disparaged. You can still adjust the sheet to cover the remaining weeks and achieve the savings goal that you have set for yourself. This challenge provides a way to save money each month without having to affect your regular spending. It is also considered as one of the best ways to save money for retirement as you can set an annual saving scheme for your retirement fund. If you choose to use this scheme to save towards your retirement, then you need to ask yourself “how much money should I save for retirement?” After deciding the final amount, you can choose a variation of the 52-week challenge that better meets your final retirement amount. 

The rules for engaging in this challenge are pretty simple. Every week, you will put aside some money according to the savings plan you choose for the 52 weeks. You can also use the principles of this money challenge 2021 to create a 100 day money challenge or other savings variations.

So, how do you start saving money? To begin this challenge, it is imperative for you to understand the technicalities associated with the money-savings charts and methods. In our previous savings articles you might have come across different savings challenges such as the money savings envelope challenge where you use envelopes to set aside cash for bills and expenses. This challenge is quite similar and can also use the envelope system for those who are disciplined spenders and savers.

Variations of the 52-Week Money Saving challenge

It is important to note that there are other variations of the 52-week money savings challenges that are basically differentiated according to financial savings goals. There are three types of savings plans including a decreasing, increasing, and constant one. The decreasing 52-week money-saving challenge starts the first week of January 2021 with the highest savings balance of the year. You will then decrease these values each week until the last week of the challenge. This decreasing plan is suitable for income earners with steady monthly or biweekly checks that can be used to meet the weekly challenges.

The “increasing” money savings plan begins the year with the smallest savings amounts and increases weekly until your minimum savings goal is reached at the end of the 52nd week. This plan is the most common one as it takes into account that most people overspend during the previous December holidays meaning that they have the least amount to save on the first week of January. If this describes your spending habits then this is the right plan for you. The constant savings 52-week money challenge takes the final savings goal that you have in mind. Divide it amongst the 52 weeks and make sure that you save a constant fee every week. This savings plan is suitable for an individual who is looking for a constant savings plan and either earns a middle or low-income wage. 

How to Use the 52-Week Money Savings Challenge

To use these money-saving challenges, all you have to do is select a plan that is suitable for your income and needs, print one of our FREE money-saving charts, and ensure that you adhere to the weekly savings amount. Before beginning, you should decide why you need to save this amount. Are you planning on taking a vacation? Or investing in a financial implement that requires a minimum savings balance? After deciding why you need to save, you should then choose the best savings platform that will restrict your usage. Always remember that this money is saved for a particular goal and should only be used in cases of emergency and when you do not have access to any other funds. You could also use these money-saving challenges to pay off your debts. Let’s say for example you have a university tuition loan or any other form of loan or debt that has been raking up interest and affecting your credit health. You can decide to set a goal that is tailored to the weekly plan thereby helping you eliminate these debts. 

Choosing a Savings Account

Theoretically, the 52-week money challenge is based on the premise of saving a weekly amount of money into your piggy bank or any other savings facility that you own. However, traditional savings accounts come with the added advantage of interest. Consequently, you would be missing out on the opportunity to make interest on your money. As such, consistently depositing your money into a savings account that is set up for the sole purpose of reducing the temptation to use your savings when you need emergency cash also comes with the advantage of interest earned on your savings amount. There are several savings accounts that are good choices for this kind of financial plan. When selecting a savings account you need to know the minimum requirements and how they will work towards your final goal.

For example, most savings accounts come with the minimum value that is required to maintain the account. Let’s say bank x requires a minimum account balance of at least 25000 USD. This will not work for you because you are unlikely to begin the 52-week money challenge if you already have a minimum deposit of 25000 dollars. As such when you shop around for good savings account look at the minimum deposit and the interest that you will earn on your savings. A simple google search on best savings account rates in 2021 will show you some accounts with comparable savings rates and you can review them to determine which is better suited to your needs and location. You might be compelled to go for high interest savings accounts but these might come with some challenges. As such, always make sure that you read the fine print before selecting a savings account.

How to be Successful at the Challenge 

The 52-week money-saving challenge is one of the best ways to save money fast. However, it is important to note that most people fail at this challenge. There are a couple of approaches and techniques that you could implement to ensure that you never fail at this challenge and they include:

Adjusting the Challenge to meet your needs

When beginning this challenge, it is important to consider your financial situation and position to ensure that it meets your needs. This is because everyone has different financial goals, expenses, and incomes. As such it is important for you to consider your financial situation and your long-term goals. For instance, let’s say you have a monthly income of $5000 and expenses that amount to $3000. In such a case it is unrealistic to adhere to a money-saving challenge that will compel you to save more than $2000 every month. This is because you have a disposable income of approximately 2000 USD. Additionally, you should consider how often you’re paid and the mode of payment. For example, if you are paid bi-weekly then you can choose a lower weekly contribution limit and if you’re paid monthly you can choose a higher weekly contribution payment limit. This is because bi-weekly checks are often lower than monthly checks. as such if you choose to adhere to a money-saving plan that compels you to contribute more every week yet you have a bi-weekly check then you’re bound to fail. 

It is also important to consider that the goal of this money-saving challenge is to improve your financial wealth and health and not to deteriorate your current status. As such it is important to abstain from using things like that to adhere to the challenge. There are a number of instances where people have decided to use debt to cover up for a deficit in their income. This often creates more problems than solutions as debt is more expensive to resolve than when you use your income. In light of such incidences, it is also important to consider that some people might have lower checks that cannot cover all meat a 52 money week challenge. This is a major and common concern for people who might have income deficits where their bill exceeds their income and they’ve had to struggle every month to be able to cover the deficit. In such an instance it is advisable to look for other passive income streams rather than appearing to this money-saving challenge because it will more likely damage your financial health than resolve it. 

Starting the Challenge with a higher amount (reducing chart variation)

Using the reducing chart variation has been shown to be more effective than the increasing one. A reducing chart variation is where you begin with a higher amount and gradually reduce until you reach the 52nd week. Why is this variation more successful than the others you might ask? It is because, at the beginning of any challenge, one is more motivated and pumped to meet all the set targets. Let’s say for instance you have a goal of saving $10000 every year. Using a reduced chat valuation implies that you might need to begin the chat with a higher savings amount that might be between 250 to 500 dollars. In such an instance one is more likely to save this money at the beginning of the challenge as they are more motivated to meet the needs done at the end of the challenge. This is just human nature. One is more likely to get bored with a routine which might affect the ability to adhere to the set targets. However, if these targets gradually become easier to accomplish then you’re more likely to meet them as you might consider them negligible to your financial status at that moment. Think of it this way in January and December most people have higher disposable incomes because of the holidays. These holidays are also considered the biggest spending which comes with a dent in most people’s financial well-being. However, you’re more likely to save a bigger amount during this month as you might justify your spending because of the savings. On the other hand, you are more unlikely to serve these higher amounts during the middle of the year or at the end of the year because you have other financial obligations that may become a constraint to you. As such it is recommended that if you want to be successful at this challenge you should use this reducing variation chat as you are more motivated and inclined to save at the beginning and at the end of the challenge.

Saving a constant amount weekly

This option of saving a constant amount every week is designed for people who like routine. There are some people who often get bored of doing something over and over again. However, there is a large number of individuals who thrive at routines. knowing whether you fall in the first or second category is imperative in ensuring that you choose a chat variation that meets your needs. As such if you like routines then it easier to use a constant money chart where you divide your total saving goals by the number of weeks to determine how much you should save every week. For instance, let’s say you have a 5000 annual savings goal. Using this constant savings money chart you will divide 5000 by 52 weeks which comes up to approximately $96.10. This means that you have to save $96 and 10 cents every month. 

Using a paycheck standing order

This is only available to people who have savings accounts that can automatically deduct the set targets from their paychecks. Let’s say you paid your check or your monthly income through a specific bank account. When you create a standing order, the specific weekly amount that you are supposed to save every week will be directly deducted from your paycheck before you can withdraw it. This makes it easier to adhere to the set targets as you will not be tempted to use your money for other things or impulse purchases.

Choosing the right savings account

As mentioned above, having the right savings account is imperative in ensuring that you’re able to meet your targets. This is because selecting the right servings platform directly implies an ability to constantly contribute the weekly amount. By savings account the means of modern and conventional ways of saving money. You might be tempted to use a more traditional way of saving money such as using a piggy bank at home. This might work for you if you are highly disciplined with your money and might not be tempted to break up your piggy bank to meet deficits in your income or impulse purchases. Choosing the right savings medium will ensure that your money is safe and well accounted for. 

 Conclusion

The 52-week money savings challenge is an innovative and exciting way of meeting an annual financial goal without compromising your monthly or weekly incomes. Adhering to this challenge might prove difficult but comes with the reward of being able to procure the high ticket item you wanted to buy or contribute to a retirement fund without compromising your ability to meet your monthly expenses and bills or delve into more debt. It is important to choose a 52-week money-saving chart that meets your needs as mentioned earlier and a savings platform that will ensure you are able to regularly contribute to your pre-set goals. We have an extensive list of money savings charts that can help you meet your goal. Check them out here!