1p Challenge

By the end of each year, I usually find myself wishing I’d done more to save money with each passing month. There might be months where you’re landed with an unexpected bill, or maybe you just really want a new pair of shoes. It’s everyone’s fear to be caught short in any month, but savings… Read more »

by RachelMitchell 8 months ago

By the end of each year, I usually find myself wishing I’d done more to save money with each passing month.

There might be months where you’re landed with an unexpected bill, or maybe you just really want a new pair of shoes. It’s everyone’s fear to be caught short in any month, but savings will insure you against any issue!

Some people may use payday loans or credit cards. While these could look like a quick fix, it can become addictive. If you fail to pay back on time, the interest added to your loan can be crippling. It’s no wonder so many end up in a cycle of debt.

So, how can you save even a small amount? Granted, these tips are more useful for those who have a regular income, but it’s useful to bear in mind for when you start your first job or start to receive student finance.

This year, I’ve started the 1p challenge. Initially I heard the idea from my bank Monzo, but it’s fairly adaptable so you’ll find a way that works for you.

The idea is that on 1st January, you put 1p into your savings. Then, each day, you add an additional penny. For example:

  • 1st Jan: 1p

  • 2nd Jan: 2p

  • 3rd Jan: 3p… and so on.

But on the 366th day this year, you’ll add a maximum amount of £3.66 to your pot. If you follow it daily, by the end of the year, you will have saved over £660.

Now, the logistics of doing this can be tackled a few ways.

I have a savings pot with Monzo, and I can either move money manually from my main account to this pot daily or set up a standing order so that it automatically moves each day (or week/ month if preferred).

If the idea of saving over £3-a-day in December sounds unrealistic, you could do the challenge in reverse. You’re in charge of how you do it, but the goal is to save a decent amount by December that could either help towards the festivities or towards a holiday! I just look forward to seeing the big amount at the end!

Perhaps you have a way of saving money that you’d like to share? If so, let us know!