Money Saving Challenges

The spare change savings challenge is a great way of saving without having to be too involved as it’s all automatic, provided you have your banking app set up to do this. Some bank apps offer to round up any spend you make to the nearest pound, directing the change into your nominated savings account. For instance, you buy some snacks and the total comes to £3.60, the bank will round it up to the nearest pound, so you’ll see a £4 charge and the 40p will go into your savings account. 

Next step: check whether your bank offers this service. If they don’t, or you prefer to spend in cash to keep track of your spending — pop your spare change in a money jar!

This challenge is a helpful way of making you more aware of what you are spending. 

For example, if you spend £3.50 on coffee, you then put £3.50 into your savings. This challenge works really well for small amounts of money which can quickly add up. However, for bigger ticket items or splurges it makes you ask yourself if you really need that item or experience. This one is a tough challenge! The whole point of the exercise is to save the same amount of money that you spend — or at least to make you more aware of what you’re spending. 

Some people are more motivated to save when they can physically see their savings growing; the visualisation helps them stay determined to carry on and reach their savings goal. The envelope challenge is a great way of saving and seeing your hard work pay off. 

With the envelope challenge, you get either 10, 20, 50, 100 envelopes and number them each from 1–10, 1–20, 1–50 or 1–100. Shuffle the envelopes up and decide to pick one out either daily, weekly or monthly. Put the amount of money that is written on the envelope inside. For example, if you pick envelope number 15 you then will place £15 in it. Keep going until you fill all your envelopes and see how much you’ve saved. Is the 100 day envelope challenge something you can try? Or how about the 52 week envelope challenge? Bear in mind that the goal may not necessarily be about the amount you are saving, but that you’re beginning to build the regular act and rhythm of consistent saving.

As money gets more digital, it can offer more possibilities to save with different tools and platforms. Cashback offers provide an option of getting money back and being rewarded for spending at particular companies. You could then use this extra money to add to your savings. Cashback deals are usually framed as a percentage, for example, get up to five percent cashback when you spend £30 or more. The five percent will then be paid into the same account used to make the purchase. You should always be cautious when spending and not let offers make you spend what you did not intend to so as to stay on budget. 

Saving goals should not force you into spending more than necessary!

Saving in the current economic climate may seem daunting, but remember that building up your savings pot in a small and consistent way can lead to amazing results over time. Saving money can be a really positive experience with lots of advantages, and not something to fear. Here are some things to keep in mind:

• The first thing to acknowledge is that the purpose of saving money is not endlessly restricting yourself, but is ultimately about empowering you to become free to reach your goals. 

• Saving is about looking forward and helping to be prepared for what life may throw your way.

• Saving does not have to be done alone. Do you and a trusted friend or relative have similar goals? Why don’t you exchange saving ideas and plans, keep each other motivated and accountable? 

If you have a savings target and want extra support, our money coaching groups can help you reach your goals.