How to save £1,500 this year with the 365 day challenge
JANUARY can be a struggle financially after Christmas, but there's a simple trick that will boost your piggy bank by £1,500 this year.
If you follow the steps below, you could walk away with the sizeable savings pot by the end of this year, and you don't even have to cut back too much of your spending.
Last year, The Money Advice Trust revealed nearly 8million Brits were expecting to fall behind on their finances in January because of Christmas spending, while uSwitch.com found the average shopper stuck £452 on a credit card to cover the cost.
Luckily, the has come up with a pain-free saving plan, which sees participants put aside a small sum each day.
The concept is that every Sunday you put aside £1, followed by £2 on Monday, £3 on Wednesday and so on.
On Saturday you’ll put £7, and then the process repeats and you’ll put aside £1 on Sunday as the new week begins.
The largest daily amount, £7, is around the cost of two coffees, so it isn’t too high an amount to factor into the budget.
THE 365 DAY CHALLENGE
HERE's how to walk away with almost £1,500 at the end of this year.
- Sunday - £1
- Monday - £2
- Tuesday - £3
- Wednesday - £4
- Thursday - £5
- Friday - £6
- Saturday - £7
- Weekly total - £28
- Yearly total - £1,456
If you stick to the daily savings, you’ll put aside £28 a week, which works out as £1,456 by the end of the year.
Money can be saved either in a jar if you tend to carry around cash, or could be transferred into a savings account each week.
The concept is seen as a more realistic saving plan than other popular alternatives, such as the 52 Week Challenge.
The 52 Week Challenge works by getting participants to put aside £1 for the first week, £2 for the second, and so forth, until the end of the year.
This may seem easier at first, but it relies on people putting their largest sums away around Christmas, which is an expensive time of year for many households.
But if the 365 day challenge still seems out of reach for you, you should consider the penny challenge.
This will help you save £668 by this time next year, starting off with as little as 1p a day.
Other ways to save cash
SAVING money can seem like a slog, but it doesn't have to be with our simple tips below:
- Open a savings account: The first steps to saving is actually opening an account that will give you the most benefits - you can find the best options here
- Download apps: There are loads of apps you can download to your smartphone, which can help you budget properly and save a fortune over the next 12 months. A few examples are Squirrel, which helps you stick to a budget as well as Chip, which works out how much money you can afford to save without it affecting your usual spending habits. You can find a roundup of the best apps to help you save money here
- Cut down on your spending: Another obvious way to save money is by cutting down on how much you spend each month. Go through your transaction history and set yourself a budget
- Plan your meals in advance: By making a list before you go grocery shopping and then sticking to it, you'll avoid picking up products you don't really need
- Pay off debts: The interests on your debts is always higher than the interest earned on your savings, so you should consider paying off any debts with your savings to be better off
More on money saving tips
In need of some cash quickly? Bloggers have told us their eight best ways to make cash in January.
Or if you've find yourself in debt, here's how to clear it by the end of this month in nine easy steps.
Meanwhile, children's savings accounts are great ways for parents to give their little ones a head start - these are the best options.
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