You can tell it is January...just as most of us are feeling the pinch, social media influencers are pushing their savings challenges as hard as they can!
As a credit union we are all for saving money...but some of these challenges make no sense and put so much pressure on you.
For example...
The 1p Challenge
On day 1 you save 1p, on day 2 you save 2p, and add just 1p more each day. At the end of the year you will have saved £671.61.
Except...
Who has time to remember to go into their online banking and transfer every single day? Or to try and find the right amount of coins each day? And if you miss a day, what then?
In January you save just £4.96...but by December you will be saving £108.50 over the month - and who has that to spare in December?
The 100 Envelope Challenge
- You buy 100 envelopes, and number them, 1-100.
- Each day you pick an envelope, and put in money to the value of the number on the front. So £1 into envelope 1, £50 into envelope 50 and so on.
- By the end of the challenge, you will have £5,050 saved up.
Except...
If you have over £5,000 to save like this, do you really need a savings challenge? Shouldn't it be somewhere a bit safer than in envelopes at home?
These are just two examples I have seen online, and neither tell you how you are meant to find the money to save in the first place.
I love a savings challenge, but only if they are realistic and have a point to them. What do you think? Do you love a savings challenge, have you been successful with the 1p or the 100 envelope method?
Next week, we will be sharing some savings challenges and ideas on how to find the money to save in the first place....