One of the most popular challenges in the search for a healthy savings habit comes in the 52-week savings challenge. That is an incredibly simple and, at the same time, effective way to make people save: small in the beginning and more with time, week after week.
Whether one saves up for a vacation, makes a huge purchase, or simply builds an emergency fund, the 52-week savings challenge provides a consistent structure to accomplish and reach financial goals.
At the end of the year, you will have a pretty substantial amount of money saved up; it is the type of challenge that’s rewarding but achievable by just about anyone.
This savings challenge has gone viral because it’s for all, rich or poor, and can be tailored to meet various financial situations. And because the amount you save each week is incremental, the challenge is not as daunting compared to other savings plans.
How Much Can Be Saved With the 52-Week Savings Challenge?
The classic version of the challenge means you save in increasingly smaller increments each week, starting with $1 in week one and $2 in week two, up until you are saving $52 in that last week of the year.
If you do this for 52 weeks, by the end, you should have a total sum of $1,378 saved.
Here’s how that breaks down:
Week 1: $1
Week 2: $2
Week 3: $3…
Week 52: $52
By saving an amount that increases over time, participants can get into the groove of saving income without feeling stressed about the financial burden at the beginning. In due course, these small contributions will total a large quantity.
The best thing is that one can adapt it to their financial situation. For example, if one feels more comfortable saving more money, one could double or even triple the amount each week and increase the amount at the end of the savings challenge accordingly.
For those who either want to save more or have bigger goals, there are some variations of the challenge.
You could either adjust the starting amount or use one of the reverse methods: start high and go lower each week as time goes on. It depends on your financial comfort.
Steps to Save With the 52-Week Savings Challenge
The 52-week savings challenge is a little bit of planning and commitment to indulge in. Here’s a step-by-step guide on how one can pull this off.
1. Set a Goal
Before taking part in the challenge, let your mind wander as to what you are saving for. Having this clear will help you through the year. You may be saving for an emergency, a down payment on your house, a vacation, or anything else. Knowing your “why” will keep you focused.
2. Choose the Correct Method of Saving
Decide how you will save each week. Though some people enjoy taking out cash and putting it in a jar, others find transferring money into a separate account for savings more appealing. Choose whatever is most beneficial to your lifestyle.
An automated savings transfer is an outstanding option since the responsibility does not fall on your shoulders and it will be regular.
3. Lessen Challenge if Needed
The basic rule of the 52-week savings challenge is that you save $1 during the first week, and as the week goes by, that amount increases. If you want to save big, then you could increase the starting amount.
If you feel it might be too hectic on your wallet when you have to save $52 in the last week, you should even out the savings throughout the year or do the reverse version of this challenge.
4. Track Your Progress
Use a visual savings tracker to stay motivated and organized. You could simply create an Excel spreadsheet or download one of many printable savings trackers that are available online.
This helps you to mark off each week as you save, which may be motivational to some on the path to achieving your savings goal.
5. Stay Committed
Consistency is key. Sometimes you will be tempted to skip a week, but try staying invested in the challenge. If ever you happen to miss a week, don’t get discouraged.
Just make up for it the following week by giving that much more of a contribution. Keep in mind, that it’s about progress and not perfection.
6. Savings Buddy
Accountability is powerful. Invite a friend or family member to take on the 52-week savings challenge with you. Sometimes having someone to share your successes and failures can keep you inspired and focused throughout the year.
7. Celebrate Milestones
Reward yourself when you reach major milestones, such as when you hit the halfway point. That helps keep spirits high and encourages saving. Just make sure that your reward doesn’t knock your savings off course.
Why People Fail With the 52-Week Savings Challenge
Although simple, not everybody successfully pulls off the 52-week savings challenge. Following are common reasons why people fail at it, plus how to avoid those pitfalls:
1. Infrequent Contributions
Life gets busy, and sometimes people forget to take out money every week. Inconsistency over this may knock the whole challenge off balance. Where possible, automate your savings; otherwise, set reminders on your phone or calendar.
2. No Motivation
Without a clear goal in mind, sometimes it is hard for some participants to feel motivated halfway through the challenge.
A reminder to yourself of why you are saving and visualizing how you will benefit from the savings at the end of the year, whether paying off some debt, going on your dream vacation, or just having a safety net provided, will keep that goal in focus.
3. Financial Emergencies
This is because unexpected expenses, like car repairs or medical bills, can quickly throw a wrench into your savings plan.
Though well-nigh impossible to avoid at times, you want to be prepared for financial emergencies; this is usually enabled by having an emergency fund different from where you keep your 52-week challenge savings.
4. Amounts Saved Too High Toward the End
The last several weeks can be rather difficult for those on tight budgets. Saving $50 or more per week may seem quite much for some people, especially during the holiday season.
You can also try flipping the challenge so that you save higher amounts earlier in the year when your expenses may be lower.
5. Impulse Spending
The temptation to spend it may arise as people watch their savings balance grow.
As such, the savings should be kept in another account that would be harder to access or on which one would have to request a transfer, so the time taken could be enough for one to change his mind against impulsive spending.
Final Words
The 52-week saving challenge is a very helpful tool for someone to build up their savings over one year. Building up from a little to more each week makes saving manageable and rewarding.
Whether this is because you want to save for a big purchase or emergency fund, or you simply want better financial habits, this challenge is great to get you going.
Setbacks along the way can of course happen, but with careful planning and a determination to stay on track, these are easily overcome: unexpected expenses, financial emergencies, or inconsistent savings—one of these missteps can quickly derail your savings plan.