16.01.2024
FUN SAVINGS CHALLENGES FOR YOUNG AND BIG
Although fast loans usually have less favorable terms, about 25% of Bulgarians resort to them for the purchase of equipment, home repairs or vacations with the family. We challenge you – to start saving from the first days of the new year, so that in 2024 you don't have to take out quick loans.
Are you planning to set up a rainy day fund? Or maybe you want to save some money for a holiday break or Christmas gifts for the whole family? Whatever your goal is, it's easy to achieve without having to sacrifice anything essential.
The Savings Challenge is a fun and educational way to work toward your financial goals. And committing to saving small amounts is also an excellent opportunity to show your children the value of money.
Ready to start saving? Let's look at a few different challenges, their benefits, and how to adapt them to fit your budget and financial needs.
1 Penny Challenge
This challenge is a method of saving money for 365 days. The goal is to increase the amount you save by 1 cent every day of the year. The first day you save 1 cent, the second - 2, the third - 3, etc. On the last day of the year, the amount must have grown to 3.65 BGN. And the sum of all these smaller amounts makes 667.95 BGN. A good amount for Christmas presents and a holiday dinner, right?
It is best to start the challenge in January. Although the amount you save at the beginning is easy to calculate, the challenge becomes more difficult towards the end of the year. This frugal method will help you pay attention to the little things you spend money on every day. It's also a great chance to create positive habits to improve your overall financial well-being.
It's a good idea to use a spreadsheet or note the amounts on a calendar to track your savings progress. Put your money in a piggy bank to watch the amount grow every day. This will motivate you to keep going. And if your partner does the same, you will be twice as rich at the end of the year.
A challenge for kids
The penny a day challenge can also be adapted for young children. The child must set aside 1 penny each, saving BGN 3.65 by the end of the year. This token amount is a great way to help little ones understand the importance of money.
Choose a glass jar or transparent piggy bank so kids can watch their savings grow. In this way, adolescents will develop good saving habits early on.
If the children are older, you can encourage them to save 10 cents each day to reach BGN 36.50 at the end of the year. Or 1 BGN per day for 365 BGN at the end of the period. You might also consider adding compounding interest to motivate them even more.
1 Penny Reverse Challenge
The challenge has the same goal – to have 667.95 BGN at the end of the year. With him, on the first day of the new year, you have to put BGN 3.65 into the piggy bank and reduce the amount by 1 penny every day. This method may be easier for you if you often run out of money around the Christmas holidays. That way, you'll tick off the hardest part, and over time, saving will become easier.
52 Week Challenge
Do you want to have an additional 1378 BGN at the end of the year? All you need to get started is BGN 1. Meet the 52-Week Challenge - a simple plan to help you turn relatively small weekly savings over the year into a big bottom line.
In the 52-week challenge, you save an amount of money that corresponds to the week you saved it. Start with 1 BGN in the first week. In the second week, save BGN 2. Week number 3 requires BGN 3. In the last week, you should save 52 BGN - and in the end you will have a total of 1378 BGN.
26 week challenge
This adaptation of the 52-week challenge is perfect for people who get paid every two weeks. The final result of the saving is the same - 1378 BGN.
The idea is to start from the second week and save BGN 3 (BGN 1 from the first week and BGN 2 from the second week), and then in the fourth week you will save BGN 7 (from the third and fourth weeks). This can make it difficult to keep track if you don't keep notes, but it will help you spread out your savings.
Challenge "1500 BGN"
This challenge is difficult, but the reward is great. With this method, you will save almost 1500 BGN (or more precisely 1456 BGN). With it, you increase the amount you save each day for a week and then reset the next week.
So, on Monday you save BGN 1, on Tuesday you save BGN 2, on Wednesday you save BGN 3 and so on until you get to Sunday when you save BGN 7. Then you return to BGN 1 on Monday and repeat this every week. Keep in mind that saving 28 BGN per week is a more serious financial commitment.
12 month challenge
The Monthly Savings Challenge encourages you to save money every month. The idea is to start with BGN 10 and gradually increase the amount every month. Multiply the month by 10 to calculate the savings you need to set aside.
Thus, in January you will save BGN 10, in February – BGN 20, in March – BGN 30, etc. If you stick to the challenge, your monthly savings will pay off BGN 780 at the end of the year.
The big challenge "7000 BGN"
The last challenge we offer you is the most ambitious of all. To make it more achievable, you can do it together with your partner - a particularly good idea if you're saving together for a mortgage deposit, wedding, car or other big purchase.
The first version of this challenge is based on the "1 cent" principle, whereby you save in increments of 10 cents per day to reach the final amount of BGN 6,679.50, with which you can treat yourself properly during the holidays.
The second option works on the same principle as the 52-week challenge, but with it you increase the amount in multiples of BGN 5 instead of BGN 1. So the first week = BGN 5, the second week = BGN 10 and so on until week number 52 = BGN 260 or a total of BGN 6,890 for the year.
Alternatively, if you are not able to set aside such large amounts, you can save BGN 5 or BGN 10 each week. With this method, you will be able to save 260 or 520 BGN, respectively.
So, what savings challenge will you start the new year with?
