Do you Accept: Our Money Saving Envelopes Challenge You
Saving money can be difficult, especially if you don’t use a budget to organize and monitor your expenditures. One approach to getting your savings going in a way that can enable you to potentially save thousands of dollars in only a few months is the envelope savings challenge.
Can you have fun saving money?
If you’re anything like us, you’re constantly looking for money-saving tips that will enable you to save a respectable sum of money without putting in a lot of work or effort.
There aren’t any quick fixes for this, of course, but we recommend making and following a traditional budget, reducing your spending, and earning more money whenever you can.
We are aware that all of this can be extremely difficult, particularly given the fact that many of us continue to experience financial insecurity as a result of the pandemic’s consequences, are juggling school loans, or are having difficulty keeping up with basic living expenditures.
You can modify the challenge to suit your needs, though, depending on the circumstances. The money-saving envelope challenge and if it’s appropriate for you are explained here.
Pros and Cons of Money Savings Envelope
Yes, you could automate deducting a particular sum from your paycheck for savings each month. The money savings envelope is merely an additional method for achieving the same goal, albeit in a more enjoyable manner. Furthermore, since the cash and envelopes are more concrete than paycheck deductions, the envelope challenge could keep you inspired to accomplish your most important objectives.
Even though it’s simple to get enthused about this novel method of money management, it’s crucial to think about both the advantages and disadvantages of the money savings envelope challenge before you begin. Here are some things to consider.
- Can assist you in quickly saving a significant amount of money
- The strategy is straightforward, and getting to the money is simple.
- If you use envelopes consistently, they are affordable.
- Plans that last longer, like the 100 or 200 envelope challenges, call for a bigger salary.
- You don’t learn how to change your spending habits as a result.
- To finish the challenge, a lot of motivation is needed.
Should you take up the challenge of the money-saving envelope?
Even if you believe the money savings envelope challenge is appropriate for you, it’s still vital to understand your circumstances so you can use the optimal amount of envelopes.
According to Vallardes, who also blogs at Wise Dollar Mom, “the money savings envelope savings challenge is great for folks who are good at keeping to goals and avoiding overspending.”
Additional scenarios where it might be appropriate for you are as follows:
- You’re on a tight budget and are aware of the exact amount you can afford to put away for the duration of the challenge
- You won’t be prevented from paying your basic costs and financial obligations if you decide to participate in the envelope challenge.
- You need to have laser focus because you have a crucial saving objective.
- You’re driven to follow through with your plan
- You generally have trouble saving money
And in the following circumstances, the money-saving envelope challenge may not make sense:
- You don’t have a budget and are unsure of how much you can set aside.
- The difficulty would put pressure on your finances that prevent you from paying your expenses on time.
- You can benefit from a less rigorous savings strategy if you have trouble sticking to financial plans.
- You don’t want to just concentrate on saving because you have other essential financial objectives.
- You don’t experience any difficulties with consistently saving money.
What's the process for the challenge?
You will require 100 numbered 1-100 envelopes to complete your challenge. How much cash you put inside the envelope depends on its number.
So, for instance, you should place £1 in the envelope marked with “one” and £2 in the envelope marked with “two.”
You will select two envelopes at random each week after making sure to shuffle them. Whichever two you choose, you put the money the label specifies in them and stash them away until the end of the challenge.
To avoid getting two low numbers or two high numbers at once, it could be a good idea to divide the envelopes into two heaps, one numbered 1-50 and the other 51-100, and choose one from each pile each week.
How much money will you save?
When all the envelopes are filled, you will have saved a total of £5,050 over the course of less than a year. To create a more attainable objective for you, you can also change the quantity of envelopes.
Your funds would reach £1,275 with 50 envelopes, and you could choose just one envelope each month and still complete the challenge in under a year.
How much time does the challenge require?
In less than a year, we want to reach the 5k. You should be able to finish the challenge in 50 weeks if you pull two envelopes each week.
If you’re having a good week or month financially, some TikTok users suggest selecting a third envelope to get to your goal faster.
What happens if you're not the right fit for the money savings envelope challenge?
There are alternative ways to save money that don’t demand strong concentration over a brief period if you’ve determined that the money savings envelope challenge isn’t the best fit for you.
Start with little sums if you have problems saving money, advises Vallardes. As soon as you get used to the technique, you can increase the amount you save. “Put $5 or $10 into your envelope every week.”
Here are some further inventive methods to continuously save money:
- Set up a budget and organize your costs so you can see where you can make savings.
- Instead of waiting until the end of the month and saving the leftover money, include your monthly savings target in your budget.
- When making major purchases, give yourself some time to think about whether you should spend the money.
- All windfalls, including tax refunds, work bonuses, and monetary presents, should be deposited into your savings account.
- Try going without any discretionary spending for a week or a month.
- Examine your monthly subscriptions and discontinue those that you don’t use frequently enough.
No matter what method you use, you must decide what is the best fit for you and stick with it.