{"id":9198,"date":"2023-08-06T10:01:22","date_gmt":"2023-08-06T10:01:22","guid":{"rendered":"https:\/\/isafespend.com\/personal-finance\/savings\/start-your-savings-journey-right-with-the-52-week-challenge\/"},"modified":"2023-08-06T10:01:23","modified_gmt":"2023-08-06T10:01:23","slug":"start-your-savings-journey-right-with-the-52-week-challenge","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=9198","title":{"rendered":"Start Your Savings Journey Right with the 52-Week Challenge!"},"content":{"rendered":"
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The 52-week challenge has been around for a while, but it got its notoriety in January 2013, when 911 dispatcher Kassondra Perry-Weaver stumbled across a simple chart that outlined a painless way to save over $1,000 over the course of a year, by consistently stashing away a set amount of cash week by week. She incorporated accountability by having family and friends help her stay on track, and today her Facebook Group has more than 7,000 members!<\/span><\/p>\n

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The Benefits of the 52-Week Challenge<\/strong><\/span><\/p>\n

Many people use the 52-Week Challenge as a way to establish healthy and consistent saving habits, and even build saving vehicles for goals like emergency savings. When it comes to saving, every little bit counts, especially since economists state that Americans’ savings have hit a 10-year low at 2.4 percent, which is below the threshold to even save comfortably for retirement. While this challenge may not give you the stacks you need for retirement, it\u2019s perfect for new savers (and seasoned savers) so they can get on track for other goals, like:<\/span><\/p>\n

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\u00a0How to Complete the Challenge<\/strong>:<\/strong><\/span><\/p>\n

The way the 52-Week Challenge works is pretty simple. You start in week one by depositing $1 dollar. Every week after that, match the amount of money you’re depositing with the number of its corresponding week. For example, in week 31, you will deposit $31 into your savings account. It might not sound like a lot, but by week 52, you’ll have saved over $1,300!<\/span><\/p>\n

Speaking of savings accounts, make your journey to saving more beneficial by putting your funds into a High Yield Savings Account. This type of savings vehicle will get you to your financial goals faster as you will earn compound interest\u00a0on your balance.<\/span><\/p>\n

If you\u2019re up for trying to save even more, try doing the Penny Challenge simultaneously with the 52-Week Challenge. The Penny Challenge works just like the 52-Week Challenge, except you save on a daily basis instead of weekly. At the end of the year, you would be depositing $3.65 to get a total of $667.95. Through both challenges, you would have saved $2,045.95. You could buy a lot of items with that, but you could also invest in a Roth IRA, a 529 plan for your younger family members, or open an investment account. Once you start saving, your financial possibilities are endless!<\/span><\/p>\n

STOP!<\/span><\/p>\n

I know it\u2019s tempting to touch those funds, but if you really want to be rolling in the dough, try saving until you hit the two-year mark. You can do this by extending your challenge to 104 weeks,\u00a0<\/span>giving you a total of $5,500. Talk about a supersaver!<\/span><\/p>\n

Don\u2019t’s:<\/strong><\/p>\n