52 Week Savings Challenge
It’s a New Year and time for new beginnings! A popular New Year Resolution is to save more money so here is a simple way to save at least $1,378.00 without breaking the budget. It is called the 52 Week Savings Challenge and it is here to help you take baby steps towards a solid savings account. While this is not a Credit Union of Denver program, we thought it could be easily adopted by most all of our members as a self-starter savings plan.
How the 52 Week Savings Challenge Works
The idea is simple:
- Deposit $1 into your savings account on week one of this year
- Followed by $2 on week two
- $3 on week three, etc
- Until you reach week 52 where you make your last deposit of $52
Your final balance at the end of the year without interest is $1,378. It’s a simple way to save almost $1,400. This amount might not sound life-changing for you at first, but when you take on simple financial challenges, they lead to bigger ones! According to the University of Michigan, 23.4% of 9,000 families surveyed had no liquid assets. That is a scary thought.
This Challenge has some Powerful Effects
It is Simple!
First, the challenge is tremendously simple (most great ideas are). Everyone has a dollar and a place to stash it. There is no excuse for not being able to at least start this challenge. Make it easy for yourself and take the time to set up individual weekly Scheduled Transfers through online banking. This let’s you set it and forget it. The credit union could assist with setting up an automatic transfer of a specific amount each week or perhaps each time you receive a direct deposit. We also offer a Starter Certificate of Deposit (CD) at one year or two term. This CD allows you to deposit funds during the term of the CD. This helps with self-discipline since the funds in the CD can’t be transferred out without a penalty before maturity.
It is Habit-Forming
The second thing to like about this challenge is that it is habit-forming. The challenge places you into the act of saving. This means you’ll have to:
- establish a place to put the money (savings, money market, starter CD)
- determine where the money is going to come from
As easy as these two steps sound, if you’re not saving regularly then it’s because you aren’t doing those two things. And there’s nothing like the fun of a good challenge to help make the habit-forming process easy.
It Sparks New Habits
Finally, the challenge is sure to spark other good financial habits like spending less than you earn and finding ways to increase your income. Odds are, if you stick to the challenge, you’ll have much more than $1,378 by the end of the year.