Cash saving challenges are an effective way to focus in the direction of a aim and provides your financial savings a lift.
There are a great deal of cash saving suggestions and challenges round – from the 1p problem to £1k in a single yr financial savings problem.
However, the 100 Envelope Problem is getting quite a lot of consideration proper now amongst the cash saving neighborhood. Particuarly because it took off on TikTok and many individuals have began to query if it’s price beginning.
It’s enjoyable and straightforward to do and may very well be an effective way to save lots of a excessive sum of money.
What’s the 100 Envelope Problem?
The 100 Envelope Problem includes numbering envelopes 1 – 100 after which stuffing these envelopes with the corresponding quantity in money. If you happen to pull envelope quantity 11, 38 or 75 – it’s essential stuff that money inside (so £11, £38 and £75).
It’s a massive aim to have however think about how nice you’ll really feel if you hit your goal.
How a lot can I save?
The 100 envelope problem goals that will help you save £5,050 in a yr. That is round £420 monthly.
If this isn’t for you may alter the problem or alter the time interval.
The thought of any cash saving problem is to have enjoyable, maintain your self motivated and hit your goal.
How do I begin the 100 envelope problem?
Work out whether it is practical to save lots of that sum of money. The place are you able to reduce? Can you are taking packed lunches to work, or cycle moderately than drive.
Maybe you may deal with a facet hustle to herald just a few bob every week.
Begin by checking in case you realistically assume it can save you £5,050 in a yr. While you break it down, saving £5,050 works out at saving simply over £13 per day.
A straightforward method to economize is to chop out unhealthy spending habits. Lower out every day espresso takeouts, magnificence remedies and impulse purchasing.
How does the 100 Envelope Problem work?
Use 100 numbered envelopes (numbered 1 – 100) and save the quantity on the corresponding envelope.
The problem is to choose two envelopes every week and attempt to discover that cash to save lots of. You would possibly decide envelopes 15 and 82, or 44 and 12.
Some savers draw the envelope at the start of the week and problem themselves to seek out some further kilos within the week.
You should buy colouring books (not envelopes) on Amazon (or seize a free printable to trace what you’re doing beneath).
When it comes to the envelopes themselves, you may decide them up cheaply sufficient on Amazon or head to your nearest pound retailer.
Money or digital financial savings?
You are able to do this problem utilizing money in bodily envelopes or digitally.
Money can swimsuit some individuals higher. Or you may arrange a digital checking account equivalent to Chip or Monzo and switch your envelope cash to that account.
Print off a tracker at residence to mark off how a lot you may have saved.
Suggestions for finishing the 100 Envelope Problem UK
Break up the envelopes into two piles – excessive and low quantities, so you are taking one envelope from every pile.
Selecting envelope 85 and 76 would possibly a bit too ambitions in a single week!
Select the the envelopes at random or particularly – when you have simply obtained paid attempt the next quantity and put that quantity away.
Make the cash saving problem enjoyable – in case you skip a takeaway or minimize down in your petrol use, use that cash to pop into one among your envelopes.
Enhance your revenue
Take a very good take a look at your family funds and realistically see if you may make any financial savings. Cancel subscriptions, or do your individual hair at residence to avoid wasting cash.
Preserve observe of your progress
Preserve that motivation going – if you’re struggling then seeing how far you’ve come is usually a actual increase. Saving cash might be enjoyable.
Use a verify checklist and tick off every quantity you handle to save lots of.
Right here’s a free printable so you may observe your progress.
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An excessive amount of? Attempt the 50 Envelope Problem
If you happen to don’t assume you may afford to save lots of this quantity, one other cash saving hack is to finish the 50 envelope problem.
Merely minimize the problem in half – utilizing 50 envelopes and label them from 1 – 50 and open only one every week, and place the corresponding quantity in there.
With the 50 Envelope Problem you’ll nonetheless save a large £1,275 in slightly below a yr!
Or, slim down extra and check out the 25 envelope financial savings problem.
Or, save £2 cash, or pop all of your 50p’s in a jar.
Why not give this a go – you could be stunned at how a lot it can save you.