Are you up for a challenge? Save thousands of dollars this year!
- Replies 14
With all the uncertainty of the past few years, it’s not really surprising to think that many Aussies are setting aside some money for savings.
After all, there’s nothing wrong with saving for a rainy day, right?
But that doesn't mean you need to start cutting out all the fun things in your life — you should take the time to pamper yourself for surviving the daily grind and the challenges that life never seems to run out of.
Speaking of challenges, we have just the thing for you!
It's called the ‘$5000 Challenge', and it's going viral on TikTok following a post from Smart Women Society.
Here’s how it works: each month, you put away a different amount, starting with $520 in January, $410 in February, $165 in March, and so on in different increments until the last instalment in December, which is worth $150.
With these amounts, you should be able to collect a whopping $5,000 by the end of the year!
If this amount is a bit too complicated or too much of a stretch, you can alternatively opt for the '$1,000 Challenge', where each month you put away an amount ranging from $25 to $165.
As an added tip, you could also evenly divide the total amounts by the number of months, so if you’re aiming for $5000 by the end of the year, you could aim for $417 monthly.
If you’re aiming for $1000, you would set aside $83 monthly.
This thousand-dollar challenge also inspired many online to share their saving hacks, and yes, we took note!
If by any chance you have a hundred envelopes lying around unused, you might find this first challenge useful!
To start this challenge, you need to mark the 100 envelopes from 1-100 with a marker or a pen.
Once done, you then need to place all the marked envelopes in a container like a box or a basket and shuffle them around.
Now, for the next 100 days (or at your own pace), you pick an envelope and set aside the amount of cash indicated on its surface. Repeat this until the 100 envelopes are filled!
While admittedly the challenge does get tedious, at least it helps with the goal, right?
Others also shared saving methods many probably find more familiar, such as the ol’ cash in the money box technique.
'I pay my bills online then take the rest out. I pay everything else with cash. Whatever I don't use I put in a money box. I've glued the lid and put a hole in big enough for 50c a few $5 and coins just from last pay,' one woman shared.
But who needs a box when you have… a soft drink bottle?
'I'm about halfway through a coke bottle of $2 coins. About $650 last time I counted,' another said.
And a third one took on a more traditional route, but with a twist: ‘Open an account with another bank and hide the card. Deposit $50 a week to it for the year, (you’ll finish with) $2600.’
‘I just completed all of last year and haven't touched it.’
Is anyone feeling a sudden itch to save? Well, with these challenges, why not?
Taking on a savings challenge can be a great way to get into the habit of saving and investing and can result in significant returns.
Breaking down a savings challenge into smaller, achievable goals can help create an easier path to success.
Additionally, setting up a savings challenge that offers some type of reward or incentive can lead to higher levels of motivation and stickiness in reaching the personal financial goals set out.
This could be in the form of small rewards, such as taking yourself out to lunch if you stick to your saving plan each month, or even larger rewards such as setting aside the additional funds from a completed savings challenge in order to take a relaxing vacation.
There’s also the bonus of taking part in savings challenges with friends or family, which can create a sense of camaraderie and accountability that leads to the completion of the challenge.
Knowing that other people are depending on you to reach the goal can help create a sense of motivation and urgency that could lead to long-term success.
But all the people in the world won’t be able to help you if you don’t help yourself.
One of the biggest hurdles in consistently being able to set aside money is controlling one’s spending triggers, which if left unchecked, can be a major cause of impulsive buying.
If for example shopping apps cause you to develop an itch to spend on things you don’t necessarily need, it might be a good idea to uninstall the apps on your phone just so you don’t readily have access to one spending trigger.
You could also seek help from trustworthy people who you know will hold you accountable if ever you give in to unnecessary spending habits.
It also wouldn’t hurt if right off the bat, you eliminate the chance to spend money you would have otherwise spent by using methods like the 50-30-20 rule, which apportions money you get from sources like salaries into three: 50 per cent for needs like rent, groceries, and other bills; 30 per cent for wants like new clothes or a nice dinner out; and 20 per cent for savings.
If you’re still up for more ways to save, you can also check out the $5 saving challenge and the Bingo Saving Challenge at our Money Saving Hacks forum!
So, what is your reaction to the $5000 Challenge? Is it something you will be participating in?
Or maybe you have tried-and-tested savings tips a lot of us could use?
Share your thoughts and tips below!
After all, there’s nothing wrong with saving for a rainy day, right?
But that doesn't mean you need to start cutting out all the fun things in your life — you should take the time to pamper yourself for surviving the daily grind and the challenges that life never seems to run out of.
Speaking of challenges, we have just the thing for you!
It's called the ‘$5000 Challenge', and it's going viral on TikTok following a post from Smart Women Society.
Here’s how it works: each month, you put away a different amount, starting with $520 in January, $410 in February, $165 in March, and so on in different increments until the last instalment in December, which is worth $150.
With these amounts, you should be able to collect a whopping $5,000 by the end of the year!
If this amount is a bit too complicated or too much of a stretch, you can alternatively opt for the '$1,000 Challenge', where each month you put away an amount ranging from $25 to $165.
Are you up for this saving challenge? Screengrab Credit: TikTok/@smartwomensociety
As an added tip, you could also evenly divide the total amounts by the number of months, so if you’re aiming for $5000 by the end of the year, you could aim for $417 monthly.
If you’re aiming for $1000, you would set aside $83 monthly.
This thousand-dollar challenge also inspired many online to share their saving hacks, and yes, we took note!
If by any chance you have a hundred envelopes lying around unused, you might find this first challenge useful!
To start this challenge, you need to mark the 100 envelopes from 1-100 with a marker or a pen.
Once done, you then need to place all the marked envelopes in a container like a box or a basket and shuffle them around.
Now, for the next 100 days (or at your own pace), you pick an envelope and set aside the amount of cash indicated on its surface. Repeat this until the 100 envelopes are filled!
While admittedly the challenge does get tedious, at least it helps with the goal, right?
Others also shared saving methods many probably find more familiar, such as the ol’ cash in the money box technique.
'I pay my bills online then take the rest out. I pay everything else with cash. Whatever I don't use I put in a money box. I've glued the lid and put a hole in big enough for 50c a few $5 and coins just from last pay,' one woman shared.
If saving up for $5000 is too much, you can try the $1000 challenge instead. Screengrab Credit: TikTok/@smartwomensociety
But who needs a box when you have… a soft drink bottle?
'I'm about halfway through a coke bottle of $2 coins. About $650 last time I counted,' another said.
And a third one took on a more traditional route, but with a twist: ‘Open an account with another bank and hide the card. Deposit $50 a week to it for the year, (you’ll finish with) $2600.’
‘I just completed all of last year and haven't touched it.’
Is anyone feeling a sudden itch to save? Well, with these challenges, why not?
Taking on a savings challenge can be a great way to get into the habit of saving and investing and can result in significant returns.
Breaking down a savings challenge into smaller, achievable goals can help create an easier path to success.
Additionally, setting up a savings challenge that offers some type of reward or incentive can lead to higher levels of motivation and stickiness in reaching the personal financial goals set out.
This could be in the form of small rewards, such as taking yourself out to lunch if you stick to your saving plan each month, or even larger rewards such as setting aside the additional funds from a completed savings challenge in order to take a relaxing vacation.
There’s also the bonus of taking part in savings challenges with friends or family, which can create a sense of camaraderie and accountability that leads to the completion of the challenge.
Knowing that other people are depending on you to reach the goal can help create a sense of motivation and urgency that could lead to long-term success.
Who knew that the humble envelope could help people save money? Stock Image Credit: Pexels/Karolina Grabowska
But all the people in the world won’t be able to help you if you don’t help yourself.
One of the biggest hurdles in consistently being able to set aside money is controlling one’s spending triggers, which if left unchecked, can be a major cause of impulsive buying.
If for example shopping apps cause you to develop an itch to spend on things you don’t necessarily need, it might be a good idea to uninstall the apps on your phone just so you don’t readily have access to one spending trigger.
You could also seek help from trustworthy people who you know will hold you accountable if ever you give in to unnecessary spending habits.
It also wouldn’t hurt if right off the bat, you eliminate the chance to spend money you would have otherwise spent by using methods like the 50-30-20 rule, which apportions money you get from sources like salaries into three: 50 per cent for needs like rent, groceries, and other bills; 30 per cent for wants like new clothes or a nice dinner out; and 20 per cent for savings.
If you’re still up for more ways to save, you can also check out the $5 saving challenge and the Bingo Saving Challenge at our Money Saving Hacks forum!
So, what is your reaction to the $5000 Challenge? Is it something you will be participating in?
Or maybe you have tried-and-tested savings tips a lot of us could use?
Share your thoughts and tips below!
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