If you are living paycheck to paycheck, the 1P savings Challenge could help you save money. This simple yet powerful money saving strategy can help you to build up your savings over time, without making drastic changes to your lifestyle.

By setting aside just 1 penny per day and gradually increasing it each day by the same amount, you can quickly add up your savings to a sizable amount in a few months. Plus, it’s a great way to kick start your saving habit.

In this article, we’ll discuss what the penny saving challenge is, how it works, and how you can make the most of it.

What is the 1p saving challenge?

The 1p Saving Challenge is a popular money saving challenge where you make a minimal daily deposit to grow your savings over time. This challenge requires you to save 1 penny on the first day, gradually increasing the amount by adding 1 penny each day, and maintaining the daily incremental increase for 365 days.

On the first day of the challenge, you save 1 penny. On the second day, you save 2 pennies. On the third day, you save 3 pennies, and so on. By the end of the year, you’ll have saved £667.95.

How does the 1p saving challenge works?

The penny saving challenge is pretty straightforward and easy to understand. In this challenge, you can choose to save 1p per day, or you can opt to save more, such as 5p, 10p, or even 50p per day. The key is to set a target which you want to achieve and then to stick with it.

By doing so, you can grow your savings over time, and save money every month.

The challenge starts by saving just one penny on the first day, followed by two pennies on the second day, three pennies on the third day, and so on. By the end of 365 days, you’ll be having a surprising sum of £667.95 in total.

Breaking down the challenge in a month by month form, you will save:

What are the benefits of the 1 penny money saving challenge?

The penny saving challenge has several benefits which can make it an excellent way to save money.

1. Encourages consistent saving:

The 1p savings challenge helps you in developing a habit of saving money by encouraging you to save a small amount of money every day. This can help you in saving a significant amount of money over a period of time.

2. Teaches financial responsibility:

By taking part in the 1 penny challenge, you can teach your children or younger ones in your family about the importance of saving money and financial responsibility. You can teach them how to create a savings pot or a money box with the help of the 1p challenge.

3. Builds discipline:

Saving 1 penny a day may seems like a small and easy task, but it requires discipline and commitment to stay consistent. By participating in the 1p saving challenge, you can build discipline and improve your money saving skills.

4. Helps in achieving financial goals:

The penny saving challenge can be a great way to save money for specific goals, such as saving for a holiday, down payment for a home, next christmas, etc. By saving a small amount every day, you can reach your financial goals faster, easily, and effectively.

How to start the 1p saving challenge?

Starting the 1p saving challenge is quite straightforward. Here is a step by step process on how to start it:

1. Set a target:

Setting a target is a crucial step in the 1p saving challenge. Determine how much you want to save over a specific period, and set your target accordingly. Having a target in mind makes it easier to stay motivated and committed to the challenge.

2. Get a jar:

Next, get a jar for the money. It could be a simple jar, piggy bank, or a decorative container which you love. Alternatively, you can even save money in an online savings account.

For this you can try Monzo, an app based mobile bank which allows you to transfer increasing amounts automatically into a separate virtual pot like your bank account on a daily basis.

Regardless of the method you choose, having a designated spot for your savings will make it easier for you to keep track of your progress and stay motivated.

3. Start saving each day:

Once you have your target and jar ready, start saving pennies every day. You can either save 1 penny per day or choose to save more. Make sure that you are consistent with your savings and do not miss out on any days.

Also read about: How to save money fast on a low income?

How to get most out of the penny saving challenge?

1. Set a goal:

To start the 1p saving challenge, set a savings goal that is specific, measurable, achievable, relevant, and time-bound (also known as SMART). This will help you stay motivated and focused on your financial objective. Through this money saving idea you can save for your next holiday, for some big purchase or just put the money in your emergency fund.

2. Start small:

Starting small is the key to successfully complete the 1p saving challenge. You can begin by setting a small, achievable goal for yourself, such as saving 1p or 10p a day. As you get comfortable with the routine, you can increase the amount which you want to save every day.

This way, you won’t feel overwhelmed or discouraged by the amount you need to save every day.

3. Be consistent:

Consistency is the key when it comes to the 1p savings challenge. Try being consistent when it comes to saving a certain amount each day, whether it’s just 1p or more. Set a reminder to add the desired amount to your jar each day, and don’t let yourself skip a day.

It may seem like a small amount, but over time it can add up a lot to your savings.

4. Make it a habit:

Try to make savings a habit and the 1 penny savings challenge can help you in developing this habit. Developing a habit takes time, so make sure to stick to your routine and continue adding to your savings jar.

Over time, it will become a natural part of your financial routine, and you’ll be surprised how much you can save just by making small changes to your daily habits.

5. Involve others:

If you want to get the most out of the penny saving challenge, try involving others. You can start a challenge within your family or friends, or even join an online community. This can provide motivation, support, and a sense of accountability to you, helping you in sticking to the challenge.

6. Track your progress:

To make the most of the penny saving challenge, it’s important to track your progress. You can use a spreadsheet, a chart or even a calendar to record your daily savings. Seeing your daily progress can motivate you to keep going and reach your savings goals.

Alternatives of 1 penny saving challenge

There are many alternatives to the 1 penny saving challenge which you can choose from to save money. Here are a few of them:

1. 52 week savings challenge

The 52 Week Savings Challenge is a popular money savings challenge to save money for the entire year. It involves saving an increasing amount of money each week, starting with £1 in the first week, £2 in the second week, and so on, until you reach the last week.

By the end of the year, you would have saved over £1,378. This challenge can be a great way to gradually increase your savings and create a healthy saving habit.

2. No spend challenge

Another alternative to the penny savings challenge is the no spend challenge which involves cutting back on all non-essential spending for a set period of time.

To start a no spend challenge, first you’ll need to set some rules for yourself. This could involve not eating out, not buying clothes or accessories, avoiding unnecessary online shopping, etc. The length of this challenge could be anywhere from a week to a month, depending on your goals.

3. Saving £1000 a Month

Saving £1000 a month can be a great challenge for those who are looking to save a significant amount of money quickly. By saving this amount, you can reach your financial goals much quicker, and use all the money for a down payment on a house, paying off debt, buying presents for christmas or new year, etc.

With these money saving challenges, you can achieve your financial goals and develop good saving habits.

How to stay motivated when taking the 1p saving challenge?

The 1p saving challenge is a great way to save money, but it can be hard to stay motivated in the first few weeks and keep up with the challenge. Here are some tips to help you stay motivated:

1. Use a visual tracker:

Using a visual tracker such as a chart or a spreadsheet can help you stay motivated. You can see how your savings are growing as you add more coins to it, which can give you a sense of accomplishment.

2. Celebrate milestones:

Celebrating your milestones can help you in staying motivated. For example, when you see that you have saved £10 or £50, treat yourself to a coffee or plan a fun day out. But don’t end up spending a huge amount of this extra cash while celebrating and make sure to have a budget when celebrating.

Conclusion

Saving money can be a bit tough, but with the 1 penny saving challenge, it’s possible to develop a better savings habit. Tracking your progress, involving others, and setting targets can help you keep motivated. The key to these money saving challenges is to stay consistent and make savings a daily habit.

Disclaimer: The information given above is provided for reference only. This is not financial advice.