Benefits and Challenges of the 52-Week Savings Challenge (2024)

There are a lot of categories of savings to keep track of as you improve your financial stability.

You need to have three to six months of living expenses in your emergency fund. You also need to make saving for retirement a priority. Depending on your circ*mstances, you may also need to set aside money for a down payment on a house, college expenses, or caring for elderly parents.

For many people, getting started is the hardest part of saving. If you're not sure where to start saving, or if you're having trouble setting money aside, you can start to build a saving habit with the 52-Week Savings Challenge.

This is a method that promises you nearly $1,400 saved at the end of the year by putting away just dollars a week.

Principles of the 52-Week Savings Challenge

The basic principles of the 52-Week Challenge are simple.

You start by saving just $1 the first week of the challenge. The next week, put away $2, and the next, $3.

Continue increasing your savings by $1 every week. By the end of the challenge, you are saving more than $50 a week, bringing your total amount saved to just under $1,400 by the end of the year.

Benefits of the 52-Week Savings Challenge

There are several small strategies built into the 52-Week Challenge that work together to make saving money easier.

Start small: It feels a lot more manageable to find $1 to save for a week than to say you'll save $100 for the month. If you feel daunted by the prospect of saving, the challenge helps you build toward larger amounts by starting small.
Build momentum: As you work toward a financial goal, you gain momentum and see more results each week. This can encourage you to keep saving and help you build a long-term habit.
Save as you go: To reach the same savings goal, you’d have to save roughly $114 per month. Setting aside a few bucks a week is often more doable than finding $100 at the end of the month after you've paid all your bills.
Stay flexible: If you are struggling to save, it may be because you have other pressing financial obligations, like paying off debt. Because you're only setting aside a small amount per week, the 52-Week Challenge keeps your money flexible, rather than tying up hundreds or thousands of dollars all at once.
Make it a game: Participating in a challenge, especially if you are doing it with a friend or group, can help make saving more fun. Rather than a difficult thing you have to do, it becomes a game that you want to win.

Anyone can use these strategies to save money, even without the 52-Week Challenge. But the benefit of the challenge is that it builds them in, making saving more accessible and manageable from the beginning.

Difficulties of the 52-Week Savings Challenge

It’s fairly easy for anyone to set aside just $1 a week, especially with a visual reminder such as a jar full of money sitting on your countertop. However, as the challenge progresses, you may encounter difficulties.

Fortunately, there are strategies you can use to overcome these challenges and make it to the end of the 52 weeks with your full savings in the bank.

Making It to the End

Toward the end of the year is when it gets tricky. Socking away $50 per week in December may be tough, especially when you considerholiday spending, like gifts, travel, office gift exchanges, and holiday meals.

Note

If you're starting at the beginning of the year, consider taking the challenge in reverse: putting away $52 in week one, $51 in week two, and increasing the amount weekly. That way, you’ll end up just needing to save a few bucks a week during the expensive holiday months.

Remembering to Set Aside Money Each Week

Additionally, since $1 a week, $2 a week, or $3 a week is such a nominal amount, it can be difficult to remember to set aside that money each week with everything else you have going on.

Note

Create a visual reminder or a regular calendar appointment to help you remember. You can also do the challenge with a friend, to hold each other accountable.

Being Strict With Self-Control

Exercising self-control can be a struggle, especially if you are doing the challenge in cash or an easily accessible checking account. When you find yourself needing small amounts of money, it may be tempting to remove just a few dollars from your savings.

Note

If you are putting money in a checking account, get rid of the debit card to make it harder to spend. You can also put the money in an interest-earning savings account; knowing that it is earning money just by sitting there may make it less tempting to spend.

Final Takeaways

When it comes to saving, lots of people struggle with both getting started and sticking to a plan. Others aren't sure how to set aside savings while still managing the rest of their financial obligations.

If you need to do any of the following, the 52-Week Savings Challenge can provide a clear path to get started:

Jumpstart your savings
Start building an emergency fund
Make saving one of your financial habits

Insights, advice, suggestions, feedback and comments from experts

As an expert and enthusiast, I have a vast amount of knowledge on various topics, including personal finance and savings strategies. I can provide information and insights based on research and general knowledge. However, please note that I have access to personal financial information or specific details about your circ*mstances. It's always a good idea to consult with a financial advisor or professional for personalized advice.

Now, let's dive into the concepts mentioned in this article.

Categories of Savings

The article mentions several categories of savings to keep track of as you improve your financial stability. These categories include:

Emergency Fund: It is recommended to have three to six months of living expenses saved in an emergency fund .
Retirement Savings: Saving for retirement is an important long-term goal. It's advisable to start saving for retirement as early as possible to take advantage of compounding interest and maximize your savings over time.
House Down Payment: Depending on your circ*mstances and goals, you may need to set aside money for a down payment on a house.
College Expenses: If you have children or plan to pursue higher education yourself, saving for college expenses is another category to consider.
Caring for Elderly Parents: In some cases, individuals may need to set aside money for caring for elderly parents.

The 52-Week Savings Challenge

The article introduces the 52-Week Savings Challenge as a method to build a saving habit. The challenge involves saving increasing amounts of money each week, starting with $1 in the first week and adding $1 to the savings amount each subsequent week. By the end of the challenge, you would be saving more than $50 per week, resulting in a total savings of just under $1,400 by the end of the year.

Benefits of the 52-Week Savings Challenge

The article highlights several benefits of the 52-Week Savings Challenge:

Starting Small: The challenge encourages starting with a small amount ($1) and gradually increasing the savings each week, making it feel more manageable.
Building Momentum: As you progress through the challenge, you gain momentum and see more significant results each week, which can motivate you to continue saving.
Saving as You Go: The challenge allows you to save smaller amounts each week, making it more doable than saving a larger sum at the end of the month.
Flexibility: The challenge keeps your money flexible since you're only setting aside a small amount per week, rather than tying up a significant portion of your funds all at once.
Making it a Game: Participating in the challenge, especially with a friend or group, can make saving more enjoyable and turn it into a game that you want to win.

Difficulties of the 52-Week Savings Challenge

While the 52-Week Savings Challenge can be a helpful savings strategy, the article acknowledges that there may be difficulties along the way. Some challenges mentioned include:

Holiday Spending: Saving $50 per week in December may be challenging due to holiday-related expenses. To address this, the article suggests considering a reverse approach to the challenge, starting with a higher savings amount in week one and gradually decreasing it during the expensive holiday months.
Remembering to Set Aside Money Each Week: Since the weekly savings amounts are relatively small, it can be easy to forget to set aside the money. Creating visual reminders or setting calendar appointments can help you remember. Doing the challenge with a friend can also provide accountability.
Exercising Self-Control: It can be tempting to dip into your savings for small expenses. To overcome this, the article suggests removing access to the savings by getting rid of the debit card or putting the money in an interest-earning savings account.

Remember, the 52-Week Savings Challenge is just one savings strategy among many. It's important to find a method that works best for your financial situation and goals.