This 52-Week Savings Challenge Can Help You End 2023 A Lot Richer – The Motley Fool

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Saving a little money every week can add up to a lot of extra money over time.

Most important points

  • The New Year is a great time to save more, and a 52-week savings challenge can be a great way to do just that.
  • This challenge is simple and will help you earn a lot more money.
  • Based on the rules of the challenge, you could end the year $1,378 richer.

If you hope to have more money in your savings account this year there are many ways to do that. One option is to try to make the process of saving fun. And you can do that easily by participating in a savings challenge.

In particular, there’s a 52-week savings challenge that many people love to do every year that lets you turn saving into a game.

While it’s a simple and easy challenge to take part in, you’ll be surprised how much extra money it will pay you before the end of the year.

How does the 52 week challenge work?

The 52 weeks savings challenge is one of the simplest challenges you can do at the start of the new year. That’s because it gives you an easy start, but you build up your efforts over time.

With the 52 weeks challenge you do the following. In the first week of the year you save $1. In the second week you save $2 and in the third week you save $3. You then continue to add an extra dollar to the amount you save each week as the year progresses. So in the 40th week of the year you save $40 and in week 52 you put $52 in your savings account.

At the end of the 52-week savings challenge, if you tracked the process each week, you would have saved a total of $1,378 over the course of the year. That’s not a bad amount of money — especially since many of the contributions you’ll be making in the first half of the year are very low and thus very easy to find money for.

There are plenty of printable checklists you can find online for participating in the challenge so you can mark each week as making the contribution you want. Or you can create your own method to track your efforts.

You can also decide for yourself whether you want to deposit the saved amount weekly into a high-interest savings account; if you want to manually put the money in a jar somewhere; or if you want to wait until the end of the month and convert the previous four weeks’ contributions into savings all at once (although that latter approach can make it more difficult to stick to your plan as you lose the consistency of the weekly contributions).

Is the 52 weeks savings challenge something for you?

The 52 week challenge will not change your financial life by itself. It’s a fun game that can make saving seem easier and even more entertaining than it feels like a huge sacrifice you have to make all the time.

While you shouldn’t take this challenge as a substitute for making meaningful financial progress toward your goals, there’s no reason not to at least start it in the first week of 2023. See how you do, and you may be surprised to learn that it’s easy to stick with it and end the year with over $1,000 in extra money in your savings account.

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