Income-Based 52 Week Money Saving Challenge for the New Year!

This post is an Income-Based 52 Week Money Saving Challenge for the New Year!

Get ready to kickstart your savings for this upcoming year! It is time to embrace an Income-Based 52 Week Money Saving Challenge. This strategy is perfect for anyone and everyone. You can’t say “I don’t have THAT much to save,” because this challenge can be altered to your income. So, here we come New Year! We are ready to secure our financial future and reach our savings goal!

WITH THAT SAID, HERE IS AN INCOME-BASED 52 WEEK MONEY SAVING CHALLENGE FOR THE NEW YEAR!!

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"There is a time for everything, and a season for every activity under the heavens:"

Ecclesiastes 3:1 Tweet

Understanding the Income-Based Money Saving Challenge

Unlike conventional money-saving challenges, the Income-Based approach revolves around a percentage of your income. That percentage is up to you, but a typical range would be 10-20%. This method is flexible and ensures your savings align with what you earn. Whether you’re on a fixed income or have a fluctuating salary, this method works seamlessly!

Tips to Get Started

Tips to Start the Money Saving Challenge: Assess Your Income

Assess Your Income

Whether you work part-time, full-time, have side hustles or not, include every cent you earn. If you work part-time and your hours fluctuate, calculate your monthly average or continue to alter your weekly savings based on the hours you have already worked.

Tips to Start the Money Saving Challenge: Set a Realistic Savings Percentage

Set a Realistic Savings Percentage

Select a percentage of your income to save each month. Aim for a range that’s challenging yet attainable, like 10-20% depending on your financial situation. Do not make it too challenging that it discourages you. Set your savings at a percentage that you know you can achieve + a little more to encourage cutting unnecessary spendings. Do not forget to consider all of your fixed bills like car loan, rent/mortgage, phone bill, and your variable expenses like groceries, gas, utilities.

Tips to Start the Money Saving Challenge: Automate Your Savings

Automate Your Savings

Setting automatic transfers to your savings or certificate will eliminate the temptation to spend it before you can save it. Automated transfers ensure consistent contribution and will aid in building financial discipline.

Tips to Start the Money Saving Challenge: Use a Budget Binder Instead

Use a Budget Binder

If your bank does not allow automatic transfers or if you just like to save by cash, a budget binder is perfect for you! You can allocate your cash to specific categories in a pvc waterproof envelope.

Budget Binder Includes:

A 6 ring leather binder
30 category decorative labels + Writable labels
12 expense budget sheets
10 zipper dust free envelopes

Effective Ways to Save More Money

Effective Ways to Save More Money: Budget wisely and stick to it

Budget Wisely and Stick to It

It is important to create a budget and track your expenses to the T. Doing so will help you see just how much you spend and what you spend on. If you notice you have been spending too much in a certain category (e.g., dining out), take the initiative to cut down on it.

If you need help creating your budget, check out our article: Simple Guide to Budgeting

Take a look at the many Budget Planners that are available to you: The Best Budget Planners

Effective Ways to Save More Money: Know Your Financial Priorities

Know Your Financial Priorities

Prioritize paying for your bills and cutting down unnecessary spendings. If you have subscriptions you barely use, cancel them. If you have been buying too much Starbucks, make coffee at home instead.

Effective Ways to Save More Money: Pay Yourself First

Pay Yourself First

Keep just enough money in your account to pay for bills and cover variable expenses, the rest, use it to pay yourself first! Instead of using the remaining to splurge, build the financial discipline of saving it!

It is imperative to pay yourself first by building up your savings, because most of your money is already being used to pay someone else.

Effective Ways to Save More Money: Embrace Frugal Habits

Embrace Frugal Habits

Execute more cost-effective alternatives in your daily life. Whether it’s meal prepping, making coffee at home, or using coupons, every penny saved counts!

Effective Ways to Save More Money: Find Additional Income Streams

Find Additional Income Streams

Consider side gigs or freelance work to supplement your primary income. Even small earnings contribute significantly to your savings.

Effective Ways to Save More Money: Incremental Increases As You Earn More

Incremental Increases As You Earn More

As you continue to earn more, save more! But first, review your bills, if your bills have increased, keep your savings amount the same. If it is the same, opt in saving more.

Another thing to consider is the rate of inflation. If this year’s inflation rate is the same or higher than your percentage of pay increase, stick to the same savings amount. If it is lower, save more!

Factors to Consider Throughout This 52 Week Money Saving Challenge

Factors to Consider: Build Your Emergency Fund

Build Your Emergency Fund

You may have some other savings goal in mind, like saving for a car, but the first thing you need to save for is your emergency fund. Your emergency fund is important for covering unexpected expenses and emergencies. Aim for at least $2500 or three months’ worth of living expenses before directing excess savings elsewhere.

Factors to Consider: Budget Adjustments and Flexibility

Budget Adjustments and Flexibility

Be receiving to life’s changes. Life can be unpredictable and at times there is not much we can do about the circumstance itself. But we can do the best we can to make being in the circumstance less stressful.

With that said, be flexible and adjust your savings plan if your income fluctuates, unexpected expenses arise, or even if you need to pull out some of the money you’ve been saving.

Factors to Consider: Avoid Lifestyle Inflation

Avoid Lifestyle Inflation

As your income increases, it doesn’t always mean more money to spend. Avoid immediately increasing your spending proportionally. Conduct a budget audit and take into account the economy’s inflation as well. If all is good, pay yourself first! Allocate a portion of the increase to savings.

Factors to Consider: Revisit and Reassess Your Budget

Revisit and Reassess Your Budget

Periodically reassess your budget, savings goals, and investment strategies to ensure they’re aligned with your current financial situation and goals. If you have accumulated more debt, consider decreasing your savings a little to pay off more of the debt. If you have paid something off, increase your savings.

Factors to Consider: Long-Term Planning

Long-Term Planning

Think beyond your Short-Term financial goals! Consider long-term financial objectives. Look into retirement planning, investments, or property ownership for future financial security!

Example: If you are looking to purchase a house in the future, open a certificate to start saving up for a down payment.

Best Budget Planners

These are some of the best budget planners out there! Any one of these will support you during your 52 week money saving challenge.

Celebrate Each Dollar Saved and Stay Consistent

Celebrate Money Saving Achievements
You’re doing it! You’re working hard towards your savings goals and prioritizing what benefits you the most in the long run. Reward yourself, but ensure rewards align with your budget.

Stay Consistent with Saving Money
Consistency is key. At first it may seem like a chore or a challenge, but as you continue to be consistent, it will soon become a habit and then second nature.

Even during months with unexpected expenses, strive to maintain your savings commitment to the best of your ability! Of course, if bills just can’t let you save, don’t dig yourself into a hole by being negative in your account.

52 WEEK MONEY SAVING CHALLENGE TEMPLATE + EXAMPLES

52 week money saving challenge example 1: part-time earner

Part-Time Earner

Net Monthly Income: $1,300

Commit to Saving At Least 10%:

$1300 x 12 months = $15,600 annually * 10% = $1,560 to Save Annually / 52 weeks = $30 to Save Weekly

Budgeting Tips: Opt for cost-effective alternatives in daily routines, like preparing meals at home or using public transportation to save on commuting costs.

Savings Progression: Aim to increase your savings percentage gradually as your income grows or when working additional hours.

52 week money saving challenge example 2: Entry-Level Earner

Entry-Level Earner

Net Monthly Income: $2,000

Commit to Saving At Least 10-15%:

$2000 x 12 months = $24,000 annually * 10% = $2,400 to Save Annually / 52 weeks = $46.15 to Save Weekly

Budgeting Tips: Track expenses meticulously and prioritize essential spending. Consider using budgeting apps to monitor your finances more effectively.

Savings Progression: As you gain experience or receive pay raises/bonuses, incrementally increase your savings percentage to 15-20%.

52 week money saving challenge example 3: Mid-Level Earner

Mid-Level Earner

Net Monthly Income: $3,000

Commit to Saving At Least 15-20%:

$3000 x 12 months = $36,000 annually * 10% = $3,600 to Save Annually / 52 weeks = $69.23 to Save Weekly

Budgeting Tips: Consider paying off more of your debt and decrease your daily expenses.

Savings Progression: Again, incrementally increase your savings percentage (20+%) as you continue to earn more.

This Concludes The Income Based 52 Week Money Saving Challenge for the New Year!

The Income-Based Money Saving Challenge isn’t just about saving money; it is also about cultivating a mindset of financial responsibility and security. By aligning your savings goals with your income, you’re securing your way toward a brighter financial future

Don’t wait until January 1st to take charge of your finances. Start NOW with this adaptable and effective savings challenge! With dedication and a strategic approach, you’ll find yourself closer to your financial aspirations than ever before!

Remember, your financial journey is unique. Customize this challenge to suit your needs and watch your savings grow steadily throughout the year. Happy saving!

love, Jas Joy