Money saving tips can help people get on their way to put more aside, whether this be for a rainy day or specific goal. As the new year looms tomorrow, many individuals will have a resolution to get their financial situation on track. This could be for the first time, or in an effort to become more money-conscious once again.
The 100 envelope savings challenge could be a perfect solution to regularly save without the endeavour being too painful.
The challenge lasts for a few months, but could be particularly lucrative, helping Britons to save just over £5,000.
But how does the challenge work? And is it suitable for everyone?
To start, savers will need to acquire a box of 100 paper envelopes – which can be picked up on a local high street or purchased online.
For example, if a person were to pull out the number £59, they would have to put in £59, or £18 if the number 18 was drawn out.
It could be an easy way to put money aside on a regular basis, and may suit those who struggle to save otherwise.
The challenge may also prove to be a bit of fun, which could take the pain out of putting money aside.
By the end of the challenge, people will have saved £5,000 – which could make a real difference for the latter half of 2022.
However, this savings challenge may come with a slightly fatal flaw for certain people.
With the onset of the pandemic, many people no longer have cash lying about in the house, and may prefer card payments.
As a result, individuals may have to take the time to withdraw the money on a twice weekly basis to put into the envelopes.
The original version of the 100 envelope challenge is straightforward, but some may wish to diversify the experience a bit.
They could make it a 200 envelope challenge if they want to save for a longer period of time, or a 50 day envelope challenge instead.
Other individuals may decide to complete the challenge with a friend or partner to see who can stick it out until the end.
The New Year is often considered an ideal time for people to get on top of their finances.
Help is also available through websites such as the Government-backed Money Helper or Citizens Advice.