The newest widely popular savings trend can be the key to improving your financial circumstances if you have trouble saving money.
The goal of this envelope savings challenge, also known as the 100 envelope money savings challenge, is to assist you in saving money in an enjoyable manner. You will save more than $5,000 in less than a year if you successfully complete the challenge.
The 100 Envelope Challenge: What Is It?
One enjoyable method of saving money is the 100 Envelope Challenge. You begin by writing numbers 1 through 100 on each of the 100 envelopes. Select one envelope at random each day. Put $5 in the envelope if it says “5”. Continue doing this every day. Once all the envelopes are filled, you will have $5,050 saved!
How the 100 Envelope Challenge Is Performed
Step# 1: Assemble your materials. You will need one hundred envelopes, cash, a box or container to hold the envelopes (optional), a black Sharpie or pen, and stickers to seal the envelopes.
If you don’t have any cash on hand, you can take out money from the ATM, bank, or your paycheck each time to put aside for the money challenge. To help you keep track of your progress, I also made a printable version of the 100 Day Envelope Challenge that you can colour every day as you fill each envelope with cash!
Step #2: Get your envelopes ready. Write a number on the front of each envelope with your pen or marker. Begin at ‘1’ and continue until ‘100’ is reached. You have the option to randomly select a number every day or to retain these in numerical order.
Step #3: Decide which envelope you will fill every day. Select one envelope each day. Next, insert the same amount of money as indicated on the envelope. For instance, you would put $67 into the envelope and seal it if you were to draw the number 67 one day. You would put $3 inside that envelope, seal it, and carry on doing this for 100 days if you drew the number 3.
Step 4: Evaluate your performance. Best wishes! You’ve finished this entertaining task. You will have 100 envelopes containing $5,050 in cash at the end of 100 days.
Step #5: Make a financial decision. The most difficult element of finishing the challenge is figuring out what to do with the winnings. The funds can be deposited into a high-yield savings account, your checking account, or a different savings account that will prevent you from using them before you need them. You can even start sinking money with this amount to open savings accounts for recurring costs.
Can you complete the 100 envelope challenge?
As someone who has personally done the 100 envelope challenge twice, I can attest to the effectiveness and doability of this money-saving strategy. It does, however, do call for perseverance, time, commitment, and money.
If you are unable to save this much money in such a short period of time, you can modify the 100-envelope challenge to suit your own financial circumstances by changing the time range.
In actuality, very few people have enough spare cash on hand to fill an envelope every day. Some even start side businesses and make unnecessary spending reductions in order to raise the money needed to finish the challenge.
Ultimately, this trend is ideal for saving money for a variety of purposes, including a down payment on a home, credit card debt repayment, student loan repayment,
vacation savings, emergency fund establishment, savings habits, and significant purchases. There are countless options!
What is the 100 envelope challenge’s digital version?
By directly or manually transferring funds into a bank account, you can participate in the 100 envelope challenge online. To assist you in selecting a number for that day or week, you can utilise an online random number generator as there is no way to use digital envelopes or physical envelopes. To assist you in keeping track of the sums, you can also utilise my 100 Day Envelope Challenge Printable.
Don’t let the substantial sum of money required to finish this 100-day envelope challenge deter you from achieving your financial objectives. If you find that this approach to saving doesn’t work for you, there are plenty of other ways to save money.
Make sure you give one a try—the goal of any money-savings challenge is to make saving money enjoyable and simple!