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Jan 05

The 50 Envelope Savings Challenge

Reading Time: 2 mins

Are you ready for a new savings challenge in 2022?

With the new year beginning, we all have a habit of setting financial resolutions. However, many of which fall by the wayside by February.  But this year we wanted to share a method that might work for you – especially if you’re an avoider when it comes to your savings personality type.

With the 50-envelope savings challenge, you could save up to £1275 in 50 weeks. You could put this money towards a house deposit, holiday or your Christmas presents – the opportunities are endless.

 

 

What is the 50-envelope savings challenge?

Simply put, it is a savings challenge based on filling 50 envelopes, with increasing amounts of money. You can save a total of £1275 in 50 weeks! If you start now, you’ll finish just in time to get in some last-minute Christmas presents. You could fill envelopes each week or at the end of the month with what’s left from your paycheck. This is completely up to you.

 

How is it done?

Start by getting yourself 50 envelopes – we opted for small dinner money sized envelopes – and a lockable box or safe. Label your envelopes from £1 – £50. The corresponding amount of money will go in each envelope. Then, place the envelopes in the box. Each week pick out an envelope to fill up – you don’t have to go in order, some weeks you might have more money left over than others.

For example, in the video, we chose to fill up the £50 and the £5 as we had a bit more money left over this month.

It is a good idea to spread out the larger amounts over the weeks. This is easier than leaving them all until the end. If you were to do them in order, you would have to save £194 in the final 4 weeks of the challenge. You might want to shuffle the envelopes to choose at random or keep them in order and pick an envelope you know you can fill that week.

Also, if you have a little more left at the end of the month than you expected, you might opt to fill an extra envelope. This would shorten the challenge, but you could always add more envelopes at the end if you chose to.

WHAT DO YOU THINK?

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Joanne
Joanne
5 months ago

Good savings idea.

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