The one percent money saving challenge
Do you find that your spending equals your income every month, and there is nothing left over for savings, not even one spare dollar? Then you need the one percent money saving challenge. It’s too easy to have in mind exactly how much you earn per month, and then spend exactly that amount without even noticing you are doing. It just becomes the done thing to spend your money as fast as you earn it. For that reason, automatically transferring a portion of your pay into a separate account is a great way to save.
Moving from saving nothing to a large chunk of your income can be difficult, and there is a good chance before long you will be back into old habits of spending your entire pay packet. Instead, slowly increase the percentage of your pay that you save each month, and I promise you will barely even notice. The one percent challenge works on the idea that saving 1% of your income on it’s own doesn’t equal much, but a continual 1% increase will add up to a large amount!
Make saving a priority
Saving shouldn’t simple be the leftovers after your monthly living expenses are paid for; it should be a priority! To do this, you need to automate. As the saying goes, out of sight out of mind. If a portion of your income is automatically transferred out of your everyday account before you even have the chance to spend any of your pay, chances are you will forget it even existed. You will then find yourself adjusting to your new, lower level of income, that is what’s left in your account after the automatic saving have gone.
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How the challenge works
As mentioned above, the idea is that you want to continuously improve by 1%. So if you already save 10%, you are going to start by upping that to 11%. If you currently save nothing, you are going to make a start at 1% of your income. You are then going to keep going with this 1% increase for 12 months. That means in month 2, you increase your savings to 2%, month 3 to 3% and so on, until you are saving 12% of your income by month 12.
You might be wondering where the extra money is going to come from? Because you are increasing your savings amount slowly, it gives you time to adjust and find areas to cut back small expenses as you go.
To help you track your progress, we have created this free printable which can be downloaded here. Use it to keep track of your monthly saving amounts and stick it somewhere you will see it often, which will help keep you motivated.