It is the first full week of 2014. When would be a better time to start a new savings plan? I found a great savings challenge. It has shown up on many sites such as Affinityplus.org and digtriad.com and has been around for years. I would give credit for the idea to a specific person if I knew who it was. It even comes with various challenges. I think it is a great way to start to save some money. By the end of one year, you will have plenty of money in an emergency fund or a vacation fund or whatever else you would like to focus the money on.
Of course, it is vital that you do not use the money expect for its intended purpose or what is the point of doing it in the first place – right?
Here is a chart that I made so you can see:
An alternative would be to swap the amounts. Start by saving $52.00 the first week and work your way down to $1.00. The further you get, the cheaper it gets to make your goal. I am going to try this in 2014 and I will update you on where I am in the process. I suspect that when it starts getting cheaper, I will get to a point where I will start to save even more.
So, for the week of January 6, 2014, I have $52.00 in savings. It is somewhere safe. Once I get to $100.00, I will open a new savings account and start adding each week. That will be next week. I’m even going to see if my wife will join me in this challenge on her own.
I was thinking about this last night. If I start at $52.00 per week and my wife starts at $1.00 per week, then each week, combined, we would save $53.00. By the end of one year, we would have a combined savings of $2756.00. I’m not sure if she will join me but we will see what happens. Either way, I will update the savings in this blog each week to let you know where we are and what kind of interest is being added as well.
You can make any adjustments to this that you want. One thing is for sure, if you do this, you will get yourself in the practice of saving on a weekly basis.
Keep in mind what I have said in the post Emergency!!! What Do I Do Now? when I mentioned that an emergency fund is for exactly that. If this is the area that you want to save towards, at least you are aware of what the money is intended for.
One nice thing about this is that if you put it in a savings account at a bank, then you will get a little interest on that money as well. Even though the chart ends at $1378.00, with interest, there should be no reason why it is not above $1400.00 by the end of the year.
Who’s with me? Let us all know of other savings strategies that you have tried or heard about.