10 money saving challenges to try if you struggle to save
Saving money can often feel like an overwhelming task, especially when there's no clear structure or plan in place. Without a strategy, expenses can quickly spiral out of control, leaving you struggling to set aside even a small portion of your income.
There are so many benefits to having savings. It offers a safety net for unexpected expenses, provides the freedom to make big purchases without debt, and helps build long-term financial security.
On the flip side, failing to save can lead to financial burnout and a constant feeling of playing catch-up. But with the right approach, saving does not have to be daunting, and believe it or not, can be fun if done in the right way!
To make saving easier and more enjoyable, we've put together a list of 10 money-saving challenges designed for those who find it tough to save, helping you get financially fit in a fun way.
The 1p challenge
To prove how simple saving can be, we’ll start with the 1p challenge. This method is a simple yet effective way to save cash, particularly well-suited for those on a tighter budget.
The concept is straightforward: on day one, you save 1 penny; on day two, 2 pennies; on day three, 3 pennies, and so on. Each day, you increase the amount by just one penny. By the end of the year, this gradual increase adds up to a substantial total of £667.95.
A great time to start this challenge is on the 1 January, allowing you to build your savings throughout the year. Alternatively, you can begin a year before a significant event, like for a holiday or to save for something special.
This challenge feels manageable from day one, making it perfect if you have a limited budget. For those with more financial flexibility, there are similar challenges that start with higher amounts, helping you with planning savings for the future.
The £1 challenge
Mastered the 1p challenge? Now let’s meet the £1 challenge. This method is an affordable way to build a healthy savings habit.
The idea is straightforward: save just £1 every day for an entire year. By the end of 12 months, you’ll have saved £365 – an amount that can make a real difference without feeling overwhelming.
Starting this challenge at the beginning of the year can make it easier to track your progress, as each day corresponds to a specific amount. The great thing about this challenge is its affordability, making it accessible to nearly everyone, even those with tight budgets.
It's a simple and manageable way to start saving regularly. For those with a bit more financial leeway, there are more advanced options that involve saving larger amounts daily or weekly, allowing you to accumulate even more by the end of the year.
The spare change challenge
The spare change challenge is an effortless way to save money without needing to change your lifestyle significantly.
At the end of each day or week, set aside any spare change you have – whether in a piggy bank, jar, or a dedicated wallet. Over time, these small amounts can accumulate into a surprisingly substantial sum. After your set goal time has passed, you can deposit the money into your bank account or use it for a specific purpose, like funding a small holiday or covering Christmas shopping.
One of the benefits of this challenge is its low effort – you’re simply saving what you already have on hand. However, if you typically use cards or digital payments, this challenge might prevent you from saving as much as you’d like to.
The round-up challenge
The round-up challenge is a simple and fun way to save money over time.
Every time you make a purchase, you round up the amount to the nearest pound and save the difference. For example, if you spend £2.75 on a coffee, you would round up to £3 and set aside the extra 25p. While each individual amount may seem small, these savings can quickly add up over time.
If you're aiming for larger savings, you can choose to round up to higher amounts, like the nearest £5. Over the course of a month or a year, this challenge can result in a substantial sum. This could potentially be hundreds of pounds, depending on your spending habits.
The round-up challenge is a great way to complement other savings goals, helping you grow your financial cushion.
The no-spend challenge
The no-spend challenge is a powerful way to take control of your finances by cutting out all non-essential spending for a set period, such as 30 days or even two months.
During this challenge, you create a list of essentials – like groceries, utilities, and rent – and commit to only purchasing those items. Everything else is off-limits.
Not only might you save far more than you initially intended, but you may also gain a clearer understanding of how much money you typically waste on non-essentials. This challenge can be eye-opening and help reset your spending habits.
The best time to start the no-spend challenge is during a month when you do not have many plans that might tempt you to spend. Consider arranging free activities, like walks or movie nights at home, to help you stay on track without feeling deprived. With a little planning, this challenge can lead to substantial savings and a healthier relationship with money.
The 30 day rule
The idea of this challenge is to wait 30 days before making any non-essential purchase.
If you still want the item after a month, then you can consider buying it. If not, you’ve successfully avoided an unnecessary expense. Starting this challenge at the beginning of the month or right after payday is ideal, as it’s often when we’re most tempted to splurge.
The key benefit of the 30 day rule is that it helps you clearly distinguish between wants and needs, leading to fewer impulse buys and more intentional spending. During the waiting period, keep a list of items you’re considering purchasing, and review it after 30 days to see if you still want them. You might be surprised at how many things you can live without!
The monthly saving challenge
The monthly saving challenge is a structured approach to building your savings over time.
The concept is simple: start by saving £10 in the first month, then increase the amount by £10 each subsequent month – £20 in the second month, £30 in the third, and so on. By the end of the year, you could have saved £780.
This challenge is ideal to begin in January, setting a positive financial tone for the year, but you can start at any time. It's best to set the money aside on payday, ensuring that your savings goal is met before other expenses come into play.
One of the main advantages of this challenge is its simplicity – making one monthly payment is easy to track and manage. Additionally, the progressive nature of the savings helps you gradually get used to setting aside larger amounts, making it less daunting as the months go by.
While this challenge has a higher end goal than some simpler ones, it remains achievable for most people, providing a significant boost to your savings by year-end. You can also look at our guide to effective budgeting for extra help on how to cut costs throughout the year.
The weekly transfer challenge
The weekly transfer challenge is a straightforward and effective way to build a substantial savings pot over time.
The idea is to transfer a fixed amount of money into a dedicated savings account every week, two weeks, or with each payday. You can start with a manageable amount, such as £10 or £25, and gradually increase it by £5 or £10 each week. This approach creates a routine of regular saving, making it a habitual part of your budgeting process.
One of the key advantages of this challenge is that it encourages consistency, which is crucial for long-term financial success. Setting up automatic transfers can help ensure you stick to the plan without even thinking about it. Plus, tracking your progress and celebrating milestones can keep you motivated throughout the challenge.
Having a dedicated savings account offers extra benefits, like earning interest and keeping your savings separate from your everyday spending, which can help prevent unnecessary withdrawals and keep your savings on track. For more on accumulating cash, check out our guide to regular savings accounts.
The 52 week challenge
The 52 week challenge is a bit more demanding but offers substantial rewards.
The idea is simple: in the first week, you save £1; in the second week, £2; and so on, increasing by £1 each week. By week 52, you’ll be saving £52, and by the end of the year, you’ll have amassed a total of £1,378.
This challenge is ideal to start at the beginning of the year, as it allows you to easily track your progress week by week, but you can start at any time. One of the main benefits of the 52 Week Challenge is the significant amount of savings it can generate in just one year. The quick progress you see in the beginning can serve as motivation to keep going. However, this challenge does require a larger budget, especially toward the end of the year when the amounts increase.
For those who might find it challenging to save the higher amounts in the later weeks, consider reversing the challenge – start with £52 in the first week and decrease by £1 each week. This approach can make it easier to stay on track and reach your savings goal.
The Christmas fund challenge
The Christmas fund challenge is a smart way to prepare financially for the holiday season by setting aside a specific amount each month dedicated to Christmas expenses.
To start, determine your annual Christmas budget by considering gifts, travel, and celebrations, then divide that amount by 12 to find your monthly saving goal. For example, if you plan to spend £600, you’d save £50 each month.
The major advantage of this challenge is that it significantly reduces financial stress during the Christmas period. By saving throughout the year, you ensure that you have the necessary funds available, helping you avoid holiday debt.
It’s best to start this challenge in January, spreading the cost evenly over the year. To stay organised, use a separate account or even an envelope specifically for Christmas savings.
For additional savings, consider buying sustainable Christmas gifts, using seasonal sales, and shopping early. These strategies can help stretch your budget further and make your Christmas fund go a long way, ensuring a joyful and debt-free holiday season.
Choose the challenge for you
We encourage you to explore different challenges and choose the ones that best suit your lifestyle and financial goals.
Whether you're just getting started or looking to enhance your current savings routine, there’s a challenge for everyone. The habit of saving, once established, can lead to substantial benefits over time, helping you achieve your financial aspirations.
For more ways to grow your savings, consider exploring savings accounts and find help and support with saving tailored to your needs.
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