With spring approaching, many people are ready to hit the reset button on different aspects of their lives. For some, this includes finances. It can be a helpful time to evaluate your situation and do some financial spring cleaning. It is also a great time to come up with money challenges to help you save more. Here are six ideas that may help.
The Spring-Cleaning Cash Challenge
Try the spring-cleaning cash challenge. If you are engaging in spring cleaning at home, use the opportunity to turn some of it into cash. Go through your closets,
garage, storage bins, and cabinets to identify items you no longer use. Then
look for ways to sell these items. List them online, take them to consignment
shops, or have a yard sale. You may declutter your home and make some money to boost your savings. Challenge yourself to earn a set amount by the end of April and once you earn it, save it rather than spend it.
The 30-Day No-Spend Challenge
Take the 30-day no-spend challenge to see if you can go for an entire month without any extraneous spending. Of course, you can still pay your bills, buy groceries, and cover transportation as needed, but challenge yourself to avoid all non-essential purchases. You might be amazed by how much you can save.
One benefit of this challenge is that it is not permanent. You can look forward to the following month when you have more spending freedom, and you can also use the time to reflect on your spending habits. You may even create new habits when you see the difference it makes. Before you begin, define what you consider to be "non-essential" and remove shopping apps from your phone. Try using what you already have at home and track how much you would have spent while watching your savings grow.
Try the $5 Challenge
Try the $5 challenge. This is a way to add to your savings account without greatly missing what you are setting aside.
"The $5 challenge is a fun challenge that stacks up the cash fast," says Kat Broncato at Clever Girl Finance.* "Over 90 days, every time you get a $5 bill, you
save it. So, if you don’t use cash, for every extra $5 you have in your checking account, transfer it to your savings. To prevent you from spending that extra cash, get a cute piggy bank, container, or money envelope that makes putting the money in easy but taking it out hard. It’s a bit random, but that’s what makes this money saving challenge fun!"
The Automatic Savings Challenge
Utilize automatic savings. It can be easier to save more if you remove willpower from the process. Set up an automatic daily or weekly transfer into savings. Even adding $5 per day can add up to about $150 over a month. Make it a challenge and have fun with it. Increase the transfer slightly each week and celebrate when you hit your target. Do this for a month as a challenge and then determine if you want to keep it up as a regular money habit.
The Round-Up Challenge
Challenge yourself to save money by rounding up every time you make a purchase and then use the difference to create savings.
"For this challenge, implement a round-up rule," says Experian.** "Anytime you
make a purchase, round up to the nearest dollar and pocket the change. For
instance, if you spend $28.57 at the store, the difference is 43 cents. Keep a
tally of your change throughout the day or week and then transfer that money
over to savings, if you're using cards for payment. If you're paying in cash,
stash the change away in a change jar."
The Cash-Only Week Challenge
Try using only cash for one week and see how much you can save. Digital payments make it easier to spend, which can lead to overspending. Withdraw a fixed amount of cash and try to stick to only that for the week. Handling physical money increases awareness of how much you are spending as you feel each transaction. This can support better decision-making. See how you do in a week and then decide if you want to make this a regular habit.
* https://www.clevergirlfinance.com/money-savings-challenge/
** https://www.experian.com/blogs/ask-experian/savings-challenges-to-try-this-year/