Author: Kelechi Edeh
Although saving money is a beneficial move, it might not be easy to encourage yourself to set aside a specified amount of money to meet your savings goal.
If you have trouble saving money monthly, you might want to pursue a savings habit like the 100-day envelop challenge. You could save up to $5,000 in 100 days with this challenge.
If you’re wondering what the 100-day challenge is and how it works, keep reading this article to find out.
What is the 100 Envelope Challenge?
The 100-day envelope challenge is a savings challenge in which participants store money in envelopes for 100 days. You should have up to $5,050 in savings by the end of the challenge. It is a popular savings trend that makes saving simple and enjoyable for participants.
How Does the 100 Envelope Challenge Work?
Here’s a step-by-step guide on the 100 days saving system
- Participants will start with 100 envelopes, preferably envelopes that can fit a dollar bill perfectly, but you can use any envelope.
- Number each envelope in order from 1 to 100.
- Then shuffle the envelopes in a box, so they’re not in any particular sequence.
- Then, commit to taking out one envelope and placing the money equivalent to the number written on it inside. For example, if you take out an envelope with the number 10, you must put $10 inside and seal it.
- If you successfully filled all the envelopes, you should have around $5,000 saved at the end of the task.
Pros and cons of the 100 Envelope challenge
Pros
- You can save up to $5,000 in a short amount of time.
- You can tailor the challenge to your specific financial situation or goals.
- It is simple to grasp.
Cons
- Putting money in the envelope every day can be difficult.
- Participants must be very motivated to complete the challenge.
The 100 Envelope Challenge Tweaks
It may not be easy to find daily cash for this challenge, especially since you have to choose the envelopes randomly. Furthermore, depending on the outcome of your draw, you may wind up financially harmed.
Fortunately, there are some ways you may adjust this challenge to make it more realistic. Below are a few ideas:Â
- You can take the weekends off if coming up with cash daily seems challenging.
- Change the length of this challenge to fit you and your needs. You may, for example, modify the days you pull the envelopes and allow yourself some gap between each day. You could also add more envelopes with lower numbers. For instance, you could divide the $100 envelope into two $50 envelopes.
- If handling cash is inconvenient, you could consider employing a digital envelope system.
Summary
The 100-day envelope challenge is a fantastic idea that might help you save thousands of dollars in a short time. The only potential problem is that it may be difficult for some people and families to find extra money to save in 100 days. However, you can apply some of the tweaks suggested in this article to make the numbers feel less overwhelming.
