The 52 Week Saving Challenge
As we begin 2016, New Year’s Resolutions are being made by people all over the world (It’s now January 14th, two weeks in – have you kept yours?) as we strive to improve ourselves each year. Many focus on improving their health, losing weight, improving their business, getting their finances in order, and much more! Over the last few years, the “52 Week Savings Challenge” has become quite popular with the internet community. I really like the idea. Start small, grow your deposits weekly and start a new habit. Posted below is what you’d expect if you stuck with the plan to completion:
I’ve shared my opinion in the past, a better solution would be to invert the weekly structure and start with $52 week one, while you are motivated. This change also allows you to save less at the end of the year when families typically face the Christmas crunch on their budget.
A better solution, in my opinion, would be to set up a $20 or $30 automatic weekly withdrawal and save or invest it depending if you want to use the money for retirement or something like a house or car down payment. Then, next year, increase the amount you are saving weekly by $10 or $20 dollars and you're well on your way to creating a nest egg. If it’s easier, change your saving frequency to monthly. Using this method, the amount you save weekly or monthly stays the same, so you know how much to consistently set aside from your budget.
If you automate your savings, you are more likely to stay committed to your savings plan because it will occur out of sight and out of mind. If you need to keep your savings in a jar so you can see your progress, that's fine. However, if you want to earn some interest, we currently offer 3% interest for a limited time. Whichever method you choose, now is a great time to start!