So you want to challenge yourself to save $1500 in three months? Starting a savings plan can be a difficult process. There are a lot of unpredictable factors that get in the way, making it more difficult for you to set aside small amounts. The $1,500 challenge can help you kickstart your savings.
When you think about $1,500 in three months, it sounds a lot. If you do the math, you have to save the below:
Now that you have an idea of how much what to save per day, the next step is understanding and eliminating some expenses. Take some time to write down all your expenses, with your necessary expenses such as rent, mortgage, average quarterly bills. Any expense that you cannot budge or alter at this time. Write down all expenses that could be adjusted such as groceries, entertainment subscriptions or gym memberships. Look at your expenses and set a hard budget on groceries. Choose meals that are cost-effective yet healthy. If you’re feeling like the gym is not producing the results you want, perhaps choose to cancel and try another way to keep fit. This could be running, YouTube workouts or simply signing up for a cheaper gym.
For many people, saving money usually means having to sacrifice lifestyle choices. This does not have to be the case if you take the time to plan your spending habits. Buying that new phone or shoes is completely achievable if you make an effort to put aside a small amount each week. It’s about setting up your finances in a way that supports your lifestyle and does not lead to financial anxiety. Instead of saying a flat out “no” on dinner plans with friends, perhaps cook a cheap meal beforehand and find a BYO restaurant so you’re not blowing your weekly budget in one night.
One of the most effective ways to save money is to not be tempted to spend it. When you receive your salary or payments, set up an automatic transfer which takes money out of your everyday spending account into another savings account. While you watch your savings grow in a separate account, you will also receive interest on the account. This means a bank will pay money into your account based on the amount which is in there. The more money that is in your account, the more interest you will gain. Contact your bank today and find out the best interest rate they can give you.
Once you’ve finished the challenge, you can then build on your savings to hopefully afford a car lease or anything else you’re saving up for.
Perception is everything. To be successful; you need to save $16.50 per day. If you’re still on the fence about that, you can do a shorter 13-week trial instead of the 52-week challenge.
It works along with the same principle as its longer relative, but instead, you save $1 on the first week, $2 in the second week, and so on. Following this pattern, you’ll have a total of $91 by the end of 13 weeks.
To achieve the $1,500 goal, save according to today instead of a week. That means $1 for day 1, $2 for day 2, and so on. If you do this for 90 days, you can expect to have saved up to $4,186. An amount more significant than your original target.
