Starting up your savings is a challenge in itself. A lot of other factors get in the way, making it more difficult for you to set aside a small amount every now and then.
What you need to start and keep saving is the right motivation. That’s what we’ll discuss with you today. The $1500-challenge can help you kickstart your savings. To help you get started, here are a few tips:
When you think about $1500 in three months, it sounds a lot. If you do the math, you have to save at $500 a month, that means $116 in a week, or $16.50 saved per day to stay on course for your target of $1500 after three months.
Now that you know the breakdown, you can then focus on saving $16.50 per day instead of $500 a month, which should be a lot easier.
Budget your money
Now that you have an idea on how much to save per day, the next step is eliminating unnecessary expenses. It could be something simple like packing your own lunch for work instead of buying from the corner store, or saving on utility bills by conserving water and electricity.
Go over your daily and monthly expenses, and determine for yourself which are the activities and things you can live without. It can clear up some of your money, and you can redirect it towards more important things like your grocery and savings.
Stay in instead of going out
A lot of people think that saving money means having to sacrifice. Well, that’s true. You need to sacrifice a little bit to achieve your goal, but you can always compromise.
For instance, some people like to go treat themselves at least once a month. There’s nothing wrong with that, in fact, it can be useful for your mental health and wellbeing.
Instead of going out during the challenge, why not spend an evening with your loved ones and watch a movie together? Netflix has an impressive selection, and it guarantees to have something for everyone.
If you don’t have Netflix, you can always go old school and watch an old DVD or Blu-ray of your choice.
Try the 13-week challenge
Perception is everything. Earlier, we discussed that to accomplish the challenge, you need to save $16.50 per day. If you’re still on the fence about that, you can do the 13-week challenge instead, a shorter version of the 52-week challenge.
It works along the same principle as its longer relative, but instead, you save $1 on the first week, $2 on 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 $1500 goal, save according to day 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 $4186. A number larger than your original target.
Put away $20 out of sight
Another way to go about the challenge is setting up your bank account to transfer $20 a week to your savings account. It’s fast, comfortable, and you don’t have to keep it in mind. All you’ll get is the weekly notification that you transferred $20 to your savings.
Doing this, together with keeping a piggy bank and cutting down on other expenses, the $1500 goal becomes more bearable.
This challenge aims to help give focus to those who just can’t seem to kickstart their savings no matter how hard they try.
Once you’ve finished the challenge, you can then use your savings however you please. You can either save it up more, or you can put it towards a car lease.