Let’s admit it. Saving up is no easy task, especially when there are so many sales to take advantage of, new and cool gadgets to own, seat sales that are too difficult to ignore, and concert tickets to fight over. In a world of uncertainty, however, setting aside a part of your allowance or hard-earned salary can come in handy.
As cliché as it may sound, however, it is better late than never. While saving up can be difficult, it can be done. Even if your attempt was an epic fail in 2017, you can start right away this 2018. Here are three money-saving challenges you can try to take on this year:
1. Daily Fixed Savings Challenge
This is the easiest money-saving challenge you can do. You have probably attempted to succeed in this challenge but stopped mid-year either because of an emergency or, er, excuses. As the name states, this scheme only requires you to put a fixed amount of money into your piggy bank or a bank account of your choice for the next 365 days. You can decide on any specific amount of your liking. If you save P20 a day, you can have P7,300 by December 31. A fixed amount of P50 will save you P18,250, while P100 a day is equivalent to P36,500. That’s still a hefty amount of money, considering how simple the challenge works.
2. 52-Week Money Saving Challenge
Back in 2014, this money saving scheme earned a great deal online buzz and participants for the supposed amount you’ll have once successfully done. It involves saving P50 on week 1 and increasing it by P50 every week so that by week 52, which is the last of the year, you will need to save P2,600. By December 31, you’ll have a whopping P68,900. This challenge, however, can be extremely difficult to sustain. You will need to save P7,000 to P10,000 monthly in the latter third of the year. For minimum wage earners, that amount is more than half of their monthly salary. Obviously, there are bills to pay and tummies to be filled so this scheme can most likely work for high-income earners or self-sustaining individuals. If you’re still eager to complete the challenge, though, you can lower your start to P20 or even a peso. Take a look at blogger Kuripot Pinay’s guide and template to help you throughout the challenge.
3. 12-Month Saving Challenge
If the 52-week money saving challenge is too unrealistic, the 12-month saving challenge is a “more practical, realistic, and sustainable alternative.” Devised by personal financial coach and registered financial planner Alvin T. Tabañag, this challenge can be done by practically anyone, regardless of your allowance or salary. Start by choosing a base amount you commit to save. Multiply your monthly income or allowance to the month % or the applicable percentage corresponding to the month number (January is 1%, February is 2%, and so on). Add the two and you’ll have your savings for the month.
Savings for the month = base amount + (month% x monthly income)
According to Tabañag, the challenge not only saves you money by the end of the year, it also lets you develop the habit of saving “gradually, realistically and sustainably”, increasing your chances of succeeding.
Whatever money saving method or challenge you choose, discipline will always be critical to your success. Making sure that you don’t miss a day, a week or a month’s specified amount of savings as well as curbing the habit of impulsive spending can take you far. After all, saving is not just some challenge to overcome. It’s a must.
Photo from JB Dionisio