Start 2023 Off with the 52-Week Savings Challenge
January 5, 2023
2023 is upon us, and one of the most common New Year’s resolutions for everyone is to save more and improve your finances in the upcoming year. However, saving money can be challenging, and saving even $500 may sound like a difficult task. So how can you easily save enough money for an emergency fund or meet a savings goal while also not feeling restrained by a budget? There is a strategy you can use to make saving easier this year.
It’s called the 52-Week Money Challenge. Read on to learn how it works.
The rules for the 52-Week Money Challenge are simple: Your goal is to save money each week, increasing the amount as you go along. Start with $1 saved in week one, increasing your savings deposits by $1 each week. The gradual structure of this savings plan can fit into your weekly budget, making it easier to stick with the plan and make it part of your spending habits.
The goal of this challenge is to help you develop saving habits that will benefit you going forward.
Set a savings goal or two
Having one savings goal, or several, can help motivate you during this money challenge. Here are a few goal suggestions:
- Purchase a car
- Down payment on a house
- Pay for a vacation
- Establish an emergency fund
- Pay off debt
If you keep your financial goals in mind, this challenge can help you save the money you need faster.
Pay off your debt
If one of your goals is to pay off your debt, a savings plan like this one and applying it to your debt is a great way to reduce your debt faster.
Keep your money safe
For safe and easy access to your money, open a high-yield savings account with no balance requirements or fees. As you grow your savings, you could consider capitalizing on short-term investments, such as Certificates, which pay higher dividends and can help grow your funds faster.
MSUFCU‘s Savings BuilderSM account also helps establish your savings faster by paying the most on initial and smaller contributions. This is different from traditional savings accounts that require larger deposits to earn the highest rate. To learn more, visit msufcu.org/savingsbuilder.
If you feel you can contribute more to this challenge, there are many versions of the 52-Week Money Challenge available online, some of which can get you to $5,000 by the end of the year. Or, you can just decide that some weeks you want to save more and contribute more to your savings account.
By focusing on saving this year, you’ll become more financially fit and better equipped to handle whatever comes your way in 2023 and beyond.
Tags: Savings, Budgeting, Money Management