“Welcome back, I can’t think of a more important personal finance topic than savings. Savings is the single most important subject in your personal finance arsenal. Most of us should know that it takes money to make money, so we need to ask ourselves, what plan can we put in place to help us reach our savings goals.
My life motto is, “if you don’t have a plan, you plan to fail.” The answer, The 52 Week Challenge. The 52 Week Challenge is a really simple savings plan that anyone should be able to do and end up with just under $1400 dollars by the end of the year. You start by saving just $1 dollar the first week. The next week, save $2. The third week, save $3…and so on, and so forth. These may seem like small amounts of money to begin with but they add up to quite the fortune by the end of the year. The 52 Week Challenge is a great way to start or add to your emergency fund or save for something special.
Remember we need to have at least 8 months of expenses tucked away in a liquid account for emergencies. If you’re feeling adventurous, or if your New Year’s Resolution is to improve your finances, try doing the 52 Week Challenge in reverse. Start with $52 dollars a week and go backwards, so you can take advantage of greater compounding interest in your savings account. I personally don’t like to put my 52 week challenge money in a savings account just yet. I like to watch the money grow right in front of me, and I believe by putting the money in a box, drawer or even an envelope helps you build the discipline you need to complete the challenge.
Start by printing off this 52 Week Challenge chart.
Stick it on the fridge, and each week, save the corresponding weekly amount. Remember to check off that week once you make a deposit. If you get off track one week and can’t make a deposit, don’t worry about it, you can rebound the following week.
But it’s important you stay disciplined and stick with it throughout the year. The biggest challenge with this plan is in the month of December when you need to tuck away almost $50 dollars a week during the holiday season. My suggestion is plan accordingly, weeks that I had extra money to put up, I would tuck away early for that very reason. This challenge can be used to save for a variety of things, such as new school clothes or books, a new car, or even a family vacation. Last year after I completed the 52 week challenge I rewarded myself with a 7 day, 7 night stay in the Bahamas.
I think it’s important when you work hard to reward yourself and it makes this year’s 52 week challenge all the more meaningful. Here are a few tips to make the challenge work for you! Even if it’s not the first week of the year as you’re watching this video it’s never too late to start the 52 week challenge.
Just put in the balance amount for the corresponding week to play catch-up and start back to the progressive amount the following week. If you found this video helpful make sure to like this video, share it with a friend, and subscribe to the Money Mike Show for more helpful personal finance videos.
“I’m Money Mike, helping you reach a financially free future!.