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What’s the difference in saving your pennies? A lot, it turns out, if you are doing a penny challenge.
This money-saving challenge can help you deposit $667.95 in a year-or deposit $671.61 in a leap year. To participate in the challenge, please follow the steps below:
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Start with saving a penny on the first day.
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For each subsequent day, add one cent to the amount you saved the day before. For example, on the second day, you will add 0.02 USD to your savings. On the third day, you will add $0.03, and so on.
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Continue this pattern every day for a whole year.
Now, please note: you are not just saving a penny every day. If you do this, you will only save $3.65 by the end of the year. It’s meaningless.
The key to increasing savings in this challenge is to add a penny to your base deposit Every day, not your total savings. Therefore, on the second day, your total amount will be $0.03, because you have added $0.02 for a penny from the first day. On the third day, you will have a total of $0.06 after saving every day.
This chart shows your daily deposit amount and your savings balance during the first week of the penny challenge.
The penny challenge at a glance
| day | Daily savings | balance | ||
|---|---|---|---|---|
| 1 | 0.01 USD | 0.01 USD | ||
| 2 | 0.02 USD | 0.03 USD | ||
| 3 | 0.03 USD | 0.06 USD | ||
| 4 | 0.04 USD | 0.10 USD | ||
| 5 | 0.05 USD | 0.15 USD | ||
| 6 | 0.06 USD | 0.21 USD | ||
| 7 | 0.07 USD | 0.28 USD |
You start with a very small amount, but your money will grow throughout the year. And because the daily savings amount is nominal, you don’t have to worry about the need for a large amount of capital to build savings.
Save money through a penny challenge
If you persist in this money-saving challenge throughout the year, you will deposit $3.65 on the last day of the challenge, and you will end up with a total of $667.95. (Trust us, we did mathematical calculations.)
This is $667.95, which you can add to your Emergency fund Or for repay loan. The money can be used for future holidays or shopping spree.
Plan how you want to use your savings.Have a The ultimate goal that really matters You will be a huge motivation to stick to this challenge throughout the year.
Responding to the penny challenge monthly
Although it is easy to find enough change to start this challenge, it will become more and more difficult over time-especially if most of your financial transactions are cashless.
You can tackle the challenge by putting your savings aside once a month instead of once a day. By combining all your daily savings for the month and depositing a single deposit, you will not face the difficulty of finding exact change every day.
Monthly savings growth
| moon | quantity | |||
|---|---|---|---|---|
| January | 4.96 USD | |||
| February | 12.74 USD | |||
| March | USD 23.25 | |||
| April | 31.65 USD | |||
| possible | 42.16 USD | |||
| June | 49.95 USD | |||
| July | 61.07 USD | |||
| August | 70.68 USD | |||
| September | 77.55 USD | |||
| October | 89.59 USD | |||
| November | 95.85 USD | |||
| December | 108.50 USD |
Pay yourself first Before you spend money on bills or other expenses, make a monthly savings deposit. Or arrange for an automatic transfer from your check to your savings account so you don’t even have to think about saving.
Deposit money into your account without making any withdrawals. By the end of this year, you will have more than $600 to spend as you wish.
Nicole Dow is the senior writer of The Penny Hoarder.
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