Millions of TikTok users were captivated by the 100-envelope money-saving. There’s a good reason for that. Americans have a median savings account balance of $1,200, according to a Motley Fool survey. Aside from that, median savings balances dropped from $4,500, and average savings balances are down from $35,366.
Nevertheless, people can save a whopping $5,050 just by participating in this challenge. A challenge like this could help you achieve any goal, from paying off debt to building an emergency fund to taking a vacation.
Even better? The 100-envelope challenge is an easy way to save money without sacrificing all your expenses or living off the grid. All you need is 100 empty envelopes and a little willpower for this 100-day money challenge.
For those who aren’t familiar, the 100-envelope challenge is a popular, gamified way to save money. To accomplish this, 100 envelopes are numbered from 1 to 100 and the corresponding amounts are saved in each envelope.
As an example, you would place $1 in envelope 1, $2 in envelope 2, etc. Your savings will total $5,050 when the 100 days are up.
As an alternative to using 100 envelopes, a more practical way of doing the 100-day money challenge would be to go digital. You can do this by following these steps:
The biggest attraction of the 100-envelope challenge? If you follow it strictly, you will have set aside a substantial amount in a relatively short amount of time. Depending on your situation, this may be more than you would save over three months, which can help you improve your financial situation.
Other reasons why the 100 envelope challenge works include:
Overall, the 100 envelope challenge can increase your savings and help you develop a healthy saving habit.
If you want to succeed at the 100-envelope challenge, follow these tips:
A 100-day envelope savings challenge is no walk in the park. For instance, if you have no problem filling up envelopes 1 through 10, but are having trouble with envelopes 50 through 100, you might have a harder time.
If you want to reach your goal, you should consider ways to cut your spending. You might find these ideas helpful:
Budgeting can also help you keep track of your income and expenses. You can identify areas where you overspend and cut back on spending by taking a bird’s eye view of your finances.
It can be fun to save through the 100-envelope challenge, but it isn’t for everyone. Depending on your goals and preferences, these options may be a better fit if you’re looking for alternatives:
Remember, the most important thing is to choose a challenge that fits your lifestyle and is realistic. As you get comfortable, gradually increase your savings. If necessary, adjust your approach.
Ultimately, the best alternative to the 100-envelope challenge is the one that works for you.
You’ll learn self-discipline, financial awareness, and delayed gratification through the 100-envelope challenge.
So, what’s holding you back? You can embark on your own 100-envelope journey to financial freedom when you grab some envelopes, get creative, and start saving.
No. Depending on your budget, you can adjust the amounts. You could, for example, save $0.50 per day or double your savings.
Absolutely! It is the adaptability of the challenge that makes it so appealing. Here are some ideas:
An old-fashioned approach to saving is taken with the 100-envelope challenge with envelopes and cash. You can, however, complete this savings challenge digitally.
If you’d like, you can download a 100-envelope challenge printable. Each day, you can check off the “envelopes” in order or pick a random number by using an online number generator.
You can transfer the amount to your savings account once you’ve chosen your envelope number. Online banking is more practical in a few ways than cash. You may lose cash in a flood, fire, or burglary if you save a large amount of money.
Secondly, cash doesn’t earn interest, losing value over time as inflation increases. High-yield savings accounts, however, may earn you interest over the year.
By all means, if envelopes and cash motivate you more, go with that approach. To keep your money safe and grow it over time, consider saving it in a high-yield savings account once you complete the money-saving challenge.
The answer depends on your financial situation and your goals. If you’re looking for an easy, quick, and effective way to boost your savings, this might be worth a try. However, don’t neglect other important financial priorities by not adjusting the challenge.
Featured Image Credit: Photo by Karolina Grabowska; Pexels
The post What is the 100-Envelope Challenge? A Fun Way to Save $5,050 appeared first on Due.
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