It's not surprising that saving money is one of the most popular New Year’s resolutions, especially with the current financial climate. But less than a third (31%) of us manage to stick to all our resolutions for12 months, according to research byYouGov.
If you're not sure where to start or you're already struggling to stick to your 2024 saving plan,this guide is for you.
Rajan Lakhani, a Plum money expert, believes that when trying to save money:
"The key to success is breaking down your savings into manageable chunks.”
With this in mind, we’ve compiled a list of popular money saving challenges to try,which could make sticking to your goals more achievable.
Whether you're looking to save a small amount or you're working towards a big goal such as a wedding ora house deposit, these saving challenges could help you on your way.
1. The no spend challenge
One of the most popular money saving challenges on TikTokright now, the 'no spend' challenge is a great way to recuperate some costs after the expensive festive period. It's also a simple and achievable way to save, so a great challenge to get stuck into!
How it works:
Commit to not spending money on unnecessary things for a set period of time (amonth is a good place to start). Of course you can still spend money on necessities, like bills and groceries, but you'll need to avoid all non-essential expenses, such as eating out.
You won’t need to set aside a specific amount of money, which can sometimes feel overwhelming, or even impossible. Instead, you commit to not spend any money you don't need to.
This challenge is a good way to get your finances back on track after overspending, or can help you to reach a savings goal. It also offers you an opportunity to review your spending habits and make changes moving forwards, for instance, if you realise you're regularly spending money on things you don't need to.
2. The 1p saving challenge
This popular challenge will enable you to save£667.95 over a year, and it starts by saving just 1p on the first day. So, this can really motivate you to get started!
How it works:
You'll need to save 1p on your first day, and then add a penny to the amount you save each day:
Day 1 - save 1p
Day 2 - save 2p
Day 3 - save 3p
And so on. Until the last day of the year (or the 365th day) when you’ll need toput aside £3.65.
Many people choose to start on 1st January, but you can start any time, as long as you stick to the challenge for 365 days.
The small amounts you need to save at the beginning are a great way to ease you into the habit of saving. You might not notice the small change you're putting aside, but once you add all the savings together, you’ll have saved a whopping £667.95!
However, this only works if you can afford to save the larger amounts towards the end of the challenge too, so make sure you take this into consideration before starting.
3. The £1 saving challenge
This challenge is similar to the 1p challenge, but a more simplified version.
How it works:
Quite simply, you'll need to put aside £1 a day for a set period of time. If you're saving for something small, you could save for 100 days which would equal £100. Or you could commit to saving up for a year, which would leave you with £365 at the end of the challenge.
There are lots of variations of this challenge too, such as the more difficult £1500 challenge (which could help you save for those bigger goals)!With this method, you’ll save almost £1,500 (£1,456 precisely). This works by increasing the amount you save each day for a week. So you'll save £1 every Monday, £2 every Tuesday and so on, for a year.
For those just starting their savings journey, £1 a day may be more manageable than setting unrealistic savings targets. Plus, you might find it easier to stick to and stay on track, as opposed to saving up a different amount every day.
In it's simplest form, this probably isn't the challenge if you're trying to save for those big milestones, but it's great if you just want to put aside some extra cash andalso perfect if you're looking for aconsistent savings challenge alongside any other savings habits. Plus, the trickier variations of the £1 saving challenge could help you reach those harder to reach goals.
4. Save for a rainy day with Plum
Plumisthe ‘ultimate smart money app' that helps over 1 million people to “invest, save and manage their spending” using automation. We've all heard the saying that you should 'save for a rainy day' and Plum takes that quite literally!
How it works:
Download the Plum app from the App Store or Google Play and register for an account.You'll need to allowread-only access to your bank accounts and credit cards, so Plum can use its technology to analyse your spending and look for areas where you can save money.
One of Plum's most popular features - the rainy day fund - helps you to build up a stash of emergency savings, for life's unexpected costs.Once opted in, Plum will automatically setmoney aside for you whenever it rains, based on the location inside your user settings.You can choose the actual amount that will be deposited on rainy days and you'll get notified every Monday on the amount you have saved the previous week.
According to Rajan Lakhani, Plum’s resident money expert:
"The idea that the weather controls how much you save sounds a bit crazy. But believe it or not, this is a very effective way to save small amounts. What a lot of people struggle with is the decision-making process, how much and when to save. So as long as the decision is made, it doesn’t really matter that it’s triggered by quite a random event."
It's easy toset up a Plum account and whilst some features are free (such as the bills tracker), you can only access rainy day saving by upgrading to a Pro, Ultra orPremium plan. Paid plans start at £2.99 a month so it could be worth it if you're serious about saving! Paid members can enjoy other savings challenges too including Plum's 52-week challenge and money maximiser.
Whilst we do recommend signing up to Plum, whether you should opt for a basic or paid plan will depend on your financial circumstances and saving goals.
5. Opt into Moneybox Round ups
Moneybox is another money saving app, currently used by over 1 million customers. You can get started from just £1 and take control of your finances to reach your savings goals. In our opinion, one of the app's best features is 'MoneyboxRound ups'.
How it works:
First, you'll need to download the app and sign up for an account and connect your bank accounts.
You can then enable automatic Round ups and your transactions will be rounded up to the nearest pound, and the difference added to your ‘Saved this week’ total.
Rounding up your transactions is an easy way to save a little extra without it making too much of a noticeable impact on your cash flow.
However the 'Saved this week' totaliscollectedfrom your Moneybox on Wednesday at around midday, andthen debited from your bank account early the following week. This means that Round ups aren’t ‘live’ deductions, but are pooled over the course of the week and later debited from your bank account in one go, so you'll need to make sure you have enough money in your account.
The Moneybox subscription fee is £1 per month, but free for the first 3 months. And according to Moneybox data,customers save on average £12.37 per week from Round ups alone. So, this can really add up over time!
If you found this blog post helpful, you might also enjoy these expert guides:
19 nationwide offers to help you enjoy your January
How your New Year resolutions can save you money
The smartest financial tips for 2024
The best fun and easy money saving apps to try
Insights, advice, suggestions, feedback and comments from experts
As an expert and enthusiast, I have access to a vast amount of information on various topics, including money-saving strategies. I can provide insights and guidance based on research and expert advice. Let's explore the concepts mentioned in the article and discuss each one in detail.
Money Saving Challenges
The article discusses several money-saving challenges that can help individuals achieve their financial goals. Let's go through each challenge and provide more information about them.
1. The No Spend Challenge The "no spend" challenge involves committing to not spending money on unnecessary things for a set period of time, typically a month. This challenge helps individuals recover from the expenses of the festive period and encourages them to review their spending habits [].
2. The 1p Saving Challenge The 1p saving challenge is a popular method to gradually save money over a year. It starts by saving 1p on the first day and increasing the amount saved by 1p each day. By the end of the year, individuals would have saved £667.95 [].
3. The £1 Saving Challenge Similar to the 1p saving challenge, the £1 saving challenge involves saving £1 a day for a set period of time. This challenge can be customized based on individual goals, such as saving for 100 days (£100) or saving for a year (£365). There are also variations of this challenge, like the £1500 challenge, which involves increasing the amount saved each day for a week [].
4. Save for a Rainy Day with Plum Plum is a smart money app that helps users save and manage their spending. One of Plum's features is the "rainy day fund," which automatically sets money aside whenever it rains based on the user's location. This feature aims to save small amounts consistently and helps users build emergency savings [].
5. Opt into Moneybox Round ups Moneybox is another money-saving app that offers a feature called "Round ups." With Round ups, users' transactions are rounded up to the nearest pound, and the difference is added to their savings. This method allows users to save a little extra without significantly impacting their cash flow [].
These money-saving challenges and apps can be helpful tools for individuals looking to save money and achieve their financial goals. It's important to choose a challenge or app that aligns with your specific needs and financial circumstances. Remember, saving money is a long-term commitment, and finding a method that suits your lifestyle and preferences is key to success.
If you have any more questions or need further assistance, feel free to ask!