How to Save More Than $1,300 by the End of 2021
January 7, 2021
What would you do with an extra $1,378 in your account by this time next year?
Saving money can be challenging and trying to save even $500 may sound difficult. But there is a strategy you can use to make a $1,378 savings easier this year.
It’s called the 52-Week Money Challenge. Read on to learn how it works.
For the 52-Week Money Challenge, the rules 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 which 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, using a savings plan like this one — but then 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 you 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 are feeling you can contribute more to this challenge, there are many versions of the 52-Week Money Challenge available online, some 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
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 2021 and beyond.
Tags: Savings, Money Management, Tips and Tricks