You will probably have come across lots of saving challenges, especially at this time of year, but I have adapted the Penny Challenge to suit me and my saving aspirations.
In normal circumstances the Penny Challenge works by adding an extra penny to your total per day, for e.g. 1p, 2p, 3p right the way up until you put £3.65 into your pot.
It’s a great way to store some money away without noticing it leaving your pocket.
Come the end of the year if you have saved every day you should have a cool £670 saved up.
Not bad eh?
How much I will be saving on my Penny Challenge?
This year I’m really going for it.
I want to be living off no more than 50% of my wages, with the rest going into retirement savings and investments.
Bearing this in mind I have cranked up the Penny Challenge somewhat.
I’m doubling my contribution per day.
For e.g. 1p, 2p, 4p, 8p and so on.
Doing it this way means I can save significantly more than £670 – in fact I’ll be saving almost double at £1,335.90p.
What’s more, I’m doing the Penny Challenge backwards so I tackle the bigger amounts first.
I don’t know about you, but my social life doesn’t generally kick back in to action until it gets a bit warmer.
Therefore I have less commitments at this time of year making it perfect for me to get the big saving sums out of the way first.
Why a lot of saving challenges fail
It’s not exaggeration to say when New Year hits we’re full of it.
Some call it enthusiasm, others would say it’s bullshizzle, but either way New Year is the time we feel most motivated to make changes in our lives.
This is the main reason saving challenges fail as the year goes on.
Taking the easy route first means that the larger saving contributions are left until the end of the year when money is most tight.
Doesn’t really make much sense to do it that way around does it?
Why you should complete a saving challenge
Plain and simple, it’s a way to get you in the habit of saving without it causing too much disruption to your life that will make you quit.
This is why I believe you should tailor it to your own situation.
The traditional Penny Challenge doesn’t suit me because I know I can spare more.
That being said we are a two income no child household and we have more spare than other households with children, so do what is best for your situation.
The key is to make sure you are doing something.
I highly recommend you start backwards on whatever challenge you do, whether it be the Penny Challenge or the 52 Week Saving Challenge.
Starting backwards at the end of this month would mean you have a nice pot of money for Christmas next year and imagine the pressure that will take off you!
How I will make my Penny Challenge contributions on a monthly income
I, like many people these days, get paid monthly.
Therefore, I like my savings to be out of my account the minute my wages hit my account.
I have planned my payments to go out accordingly on that basis:
- January £217
- February £191.70
- March £179.18
- April £155.10
- May £141.36
- June £122.14
- July £99.90
- August £84.32
- September £63.30
- October £46.50
- November £25.48
- December £9.92
I just need to work out what to do with the extra money as my contributions decrease.
Are you taking part in any saving challenges this year?
Latest posts by Thinking Thrifty (see all)
- 5 Reasons Why The Early Bird Catches The Worm When It Comes To Investing - April 19, 2017
- Smoked Haddock Loins In a Mustard and Yoghurt Sauce: Slimming World Friendly - April 11, 2017
- Why You Should Be Meal Planning - April 11, 2017