52 Envelope Challenge
Every Tuesday, I will present some tips or insight with regards to lifestyle of Free Lance Web Designer’s finances. Let’s discuss how to save $1,378 in one calendar year with 52 envelope challenge. This is just one of many ways to move away from a spending to a saving mindset.
What is needed for 52 Envelope Challenge?
You will need to go to your local dollar store and purchase box (at least 52) envelopes and a pencil, or pen. Then number the envelopes from 1 – 52. Every week, you will need to place the dollar amount associated with the envelope. For example, week one will be envelope #1, so you would place $1.00 in that envelope. Week #2, you would grab envelope #2 and place $2.00 in that envelope. And so on…
I would recommend opening a savings account. You should not have a checking account or debit card for this account. Look for an account with no fees or minimal amounts associated. Every week, place the amount in your account. If you can have it directly deducted from your account, then that would be great as well.
What are the results from the 52 Envelope Challenge?
In 52 weeks, you will have $1,378 in saving. Not a lot of money, but it will assist in creating a saving mindset. This is a great way to pay for or at least pay for part of your holiday spending. Vacation. Spring Break. Or just to build in a nice fund for a rainy day.
Some financial institutions have 52 envelope challenges, and will provide several easy ways to contribute, but will provide several penalty for early withdrawals. You can check out your local banks for more information.
Benefits of 52 Envelope Challenge
While there are several benefits of the 52 Envelope Challenge, establishing a discipline mindset. Saving money for a specific goal. Not having to over extend your other financial resources.
Image courtesy of Sharon McCuthcheon.
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