Should you try a 52 week savings challenge in 2022?

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This simple challenge could leave you with a bigger bank account by 2023.


Key points

  • A 52 week savings challenge involves saving a set amount of money each week.
  • Many people start 52 week challenges at the start of a new year.
  • Whether it’s a good idea to participate depends on your goals.

Saving more money doesn’t have to be difficult, and it doesn’t always have to require sacrifice. Lots of people try to make it fun to put aside more money. And one way to do that is to take part in a 52-week savings challenge.

The start of a new year can be a good time to start this challenge, but the big questions are, how does it work and does it make sense for you to participate?

How does a 52 week savings challenge work?

A 52 Week Savings Challenge is a simple concept designed to make saving easy, effortless and even fun.

To participate in the 52 Week Savings Challenge, here’s what you would do:

  • During the first week of the challenge, you would save $1
  • During the second week of the challenge, you will save $2
  • During the third week of the challenge, you will save $3

You will continue at this rate, increasing the amount you save each week by $1. As a result, in the 52nd week of the challenge, you would deposit $52 into a High Yield Savings Account.

This challenge starts you off small since you only save a few bucks here and there. As you get used to finding small expenses to cut to save more, you can slowly increase the amount you set aside.

But even the last week of the year, when you make your biggest contribution, you still don’t need to come up with $52 – which for most people is the cost of a dinner out or of a few lunches that you would normally buy during the work week.

While those small amounts of money you save each week may not require you to change much, if anything, in your lifestyle, the small contributions do add up since you make them regularly. If you participate in the 52 week savings challenge, at the end of last week you would have raised $1,326 in total.

Should you take part in a 52 week savings challenge?

Saving $1,326 is no small feat, and that extra money can help boost your emergency fund, help you make big purchases, or give you extra money to invest in an investment account for retirement. There are few downsides to participating in this fun savings challenge and ending the year with over $1,000 more.

While many people start the 52 Week Savings Challenge in the first week, you can start it anytime and it’s a great way to accomplish your financial resolution to save more money in 2022. if you have decided to invest more for your future. . In fact, you can continuously participate in a 52 week savings challenge if you wish, starting over at $1 each time you reach your $52 week.

Of course, while this challenge is fun, it shouldn’t replace other savings efforts. Regular savings should be built into your budget and you should make sure you have specific plans for how much to save each month and then automate your contributions to your accounts to make sure you keep up.

The 52-Week Challenge can complement this kind of careful savings plan, but shouldn’t be a substitute if you’re serious about building wealth.

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