How the 52-week savings challenge can help you save $1,300 in one year (2024)

Maybe you want to get better at saving money, but it feels like a struggle. You’re not the only one: A found that 53% of American workers say it’s difficult or impossible to consistently save enough money to feel comfortable for emergencies, retirement, or any other reason, given their current financial situation.

However, having a healthy savings account balance is crucial for staying out of debt and reaching your financial goals. Starting small and building positive saving habits can help you get the ball rolling. For many savers, the 52-week savings challenge is a great way to do just that.

How the 52-week savings challenge works

The 52-week savings challenge helps you set aside a small amount of money each week that snowballs over a one-year period. The idea is that you learn to save money consistently over time and adjust that weekly deposit upward little by little.

The challenge starts with saving just $1 the first week, $2 the second week, $3 the third week, and so on. By the final week of the challenge, you’ll set aside $52. And at the end of the year, you’ll have a total savings of $1,378.

Experts say that these types of challenges can motivate savers to stick to a strategy. “Savings challenges work because they ‘gamify’ something that might seem dull, boring, or hard,” said Lindsay Bryan-Podvin, a financial therapist at . “We may be more likely to follow through when we take something challenging and put a fun spin on it.”

Here’s a breakdown of how much you can expect to save over the course of a year:

Where to put your savings

Where you put your money is just as important as how much you’re saving. Before you begin the savings challenge, think carefully about what type of bank account is best for your situation.

A traditional savings account can provide a safe place to store your savings with easy access to those funds. However, it may not be the best option when it comes to earning interest and maximizing your savings over time.

The national average rate for a traditional savings account is just 0.47% as of March 2024. On the other hand, high-yield savings account rates can be as high as 5%. High-yield savings accounts offer the same security and liquidity as traditional savings accounts, but also provide an opportunity to earn compound interest at a higher rate. This means your money will grow faster over time, even if you don’t make any more contributions.

Another potential option is a money market account. This type of account works like a hybrid checking and savings account. Money market accounts also tend to offer higher interest rates than traditional savings accounts, along with check-writing and debit card privileges. However, you may be required to maintain a minimum balance in order to earn the highest advertised rate and avoid fees.

Read more: Money market account vs. high-yield savings account: Which is best for you?

How to start the 52-week challenge

If the 52-week savings challenge sounds like it could help you, here are a few steps you can take to get started:

  • Set a savings goal: Having a clear picture of what you’re saving for can help you stay motivated. Using this challenge, you can expect to save just over $1,300, which could be enough to pay off a debt, start an emergency fund, or pay for an upcoming vacation.

  • Review your current spending habits: Before you start this savings challenge, assess your current financial situation to determine if you have the funds available to make weekly savings deposits. If not, you may need to figure out if there are expenses you can cut to make this challenge easier. For example, maybe you have unused subscriptions that are eating into your monthly budget that you could freeze or cancel to come up with extra cash.

  • Decide where you’ll keep your funds: As mentioned, there are several account types you can choose from. Each has its pros and cons; the best choice will be the one that helps you stick with your plan, avoid fees, and reach your goals.

Read more: What is a good savings account interest rate?

How to stay the course

Consistency is key when it comes to saving money. The goal is to build positive habits that carry on even after you’ve finished the challenge.

“These savings challenges can be helpful because they start out small and grow over time,” said Kendall Meade, a financial planner at SoFi. “They also get you used to saving, which can carry over once the challenge is over.”

Meade added that one pitfall to avoid is rewarding yourself after the challenge is over and spending that savings or spending more than you would have without ever doing the challenge. That’s why it’s important to have a clear goal in mind when you start.

Here are a few tips for getting the most out of this challenge and staying the course:

  • Keep a budget or expense tracker to monitor your savings progress: Follow a detailed budget or use a budgeting app to monitor your spending, find opportunities to save more, and watch your savings account balance grow. This can motivate you to keep the momentum going and continue saving.

  • Be flexible: Life happens. Sometimes, unexpected financial obligations can make it more difficult to save. Be realistic about whether or not this challenge is working for you — if you need to temporarily pause the challenge to address a more pressing financial need, that’s okay. You can always pick up where you left off.

  • Involve others: Share your savings goal with friends or family. You could even challenge them to participate with you. Having a support system can increase your motivation and accountability.

How the 52-week savings challenge can help you save $1,300 in one year (2024)

FAQs

How the 52-week savings challenge can help you save $1,300 in one year? ›

The challenge starts with saving just $1 the first week, $2 the second week, $3 the third week, and so on. By the final week of the challenge, you'll set aside $52. And at the end of the year, you'll have a total savings of $1,378. Experts say that these types of challenges can motivate savers to stick to a strategy.

How much money will I save if I do the 52 week challenge? ›

The 52-week savings plan

If you're new to the 52-week money challenge, the first month or so you might wonder if it will take 52 years to see progress because you start so small. But know that this savings plan is effective, and it can help you sock away more than a thousand dollars in a year — $1,378 to be exact.

What is the 52 week rule for savings? ›

Match each week's savings amount with the number of the week in your challenge. In other words, you'll save $1 the first week, $2 the second week, $3 the third week, and so on until you put away $52 in week 52.

How do you do the 1 to 52 week savings challenge? ›

With this challenge, you save weekly rather than daily. And this amount goes up incrementally. Essentially, you save £1 for each week you are on in the year. So week one = £1 and week 52 = £52.

How to save $1500 in a year? ›

To save just over $1500 in total, you can fix your weekly deposit at $29 over 52 weeks. It's a good idea to then schedule regular automated transfers into a bank account so you can save without even thinking.

How to save $1378 in 52 weeks? ›

There are no complicated rules to remember. Week 1, you save $1.00. Week 2 you save $2.00, and it continues through the year, adding one more dollar to each week's savings goal. By Week 52, you'll set aside $52.00, which will bring the year's total savings to $1,378!

How does the money saving challenge work? ›

The 100-envelope challenge is pretty straightforward: You take 100 envelopes, number each of them and then save the corresponding dollar amount in each envelope. For instance, you put $1 in “Envelope 1,” $2 in “Envelope 2,” and so on. By the end of 100 days, you'll have saved $5,050.

How much is $1 a week for a year? ›

$1 weekly is how much per year? If you make $1 per week, your Yearly salary would be $52.

How much is $1 dollar a day for a year? ›

If you saved $1 a day for a year, do you know how much money you'd have? Roughly $30,000. This is totally 100% true.

How do I start the 52 week challenge? ›

Starting week 1, deposit your savings on M-Shwari starting with KSHs. 50, then KSHs. 100 the next week, KSHs. 150 the week after that and so on and so forth, until the last week of December where you will save KSHs.

How to save $5000 in 3 months with 100 envelopes? ›

You can save over $5,000 in just over three months with the 100 envelope challenge. It works like this: Gather 100 envelopes and number them from 1 to 100. Each day, fill up one envelope with the amount of cash corresponding to the number on the envelope. You can fill up the envelopes in order or pick them at random.

How much money do you get after 52 week challenge? ›

Check out our guide on how to budget to start getting a handle on your spending and saving. You'll end the challenge with over $1,300 saved If you successfully complete the 52-week money challenge, you'll have $1,378 set aside.

How much will I save with 100 day challenge? ›

Each day, fill up one envelope with the amount of cash corresponding to the number on the envelope. You can fill up the envelopes in order or pick them at random. After you've filled up all the envelopes, you'll have a total savings of $5,050.

How much do you save in the 100 envelope challenge? ›

Take stock of your savings At the end of 100 days, you'll have 100 envelopes containing $5,050. That's right—1 + 2 + 3 + 4 and every other number through 100 equals just over $5,000.

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