Savings Challenge: Three Clever Ways to Grow Your Savings

Most people know they need to set aside three to six months of living expenses in their emergency savings fund or want to save up money for something big, like a wedding or vacation. Staying motivated to reach that savings goal isn’t always easy, though. Like setting a weight loss goal, making a game out of it makes it way more fun to stick to your plan and achieve your goals.

What is a savings challenge?

Similar to a weekly steps challenge or daily water intake goal, with a savings challenge you set an amount of money that you are committed to putting in savings each day for a certain period of time (like a year). There are many types of savings challenges to choose from depending on your goals and room in your budget to build your savings.

What is the 25-cent savings challenge?

There are three ways to complete the 25-cent savings challenge. We’ll call them Level 1, Level 2 and Level 3. Choose the one that fits your budget best and start saving now (you can do this any time of the year).

• Level 1 25-cent savings challenge. In the first level of the savings challenge, you’ll save 25 cents a day each day of the year. That means you’ll save $1.75 a week, roughly $7 a month and $91.50 in a year.
• Level 2 25-cent savings challenge. In the second level of the savings challenge, you’ll save a quarter each day for a month, then you’ll add another quarter to what you’re saving, meaning you’ll set aside 50-cents a day for the second month. Each month you’ll add a quarter to what you’re adding to savings each week. At the end of the year, you’ll have $593.75 saved up!
• Level 3 25-cent savings challenge. It’s the toughest level for a reason, but you’ll also save some serious dough if you complete this savings challenge. In the third level of the savings challenge, you’ll save a quarter the first day and add a quarter to the amount you save each day. That means 25 cents on day 1, 50 cents on day 2, 75 cents on day 3 and so on. At the end of a year, you’ll have set aside $16,786.25.

Quarter Challenge Tracker

How do I decide if a savings challenge is right for me?

Just like with any financial decision you are making, it’s best to review your budget before deciding. Maybe you’d love to set aside $16,786.25 in a year, but you don’t have that much available in your budget. Try Level 1 or Level 2 instead, where you’ll save anywhere from $7.75 to $93 a month.

Ready to start building your savings? Open a Name Your Savings account today and set up automatic transfers to help you hit your savings challenge goal.