Saving money isn’t always easy. When we talk about things like following the 50/30/20 rule, what we’re really trying to do is build up a healthier relationship with our cash. It’s all about developing simple habits that lead to serious benefits over time – and that’s usually worth a lot more than socking away a lump of cash every now and then.
For a quick guide to the 50/30/20 rule, take a look at our article, “What You Should Be Saving According to Your Salary”. For right now, though, let’s talk about how even the smallest baby-steps toward better saving habits matter. The 1p money saving challenge is a great example of this, and it’s something you can start as soon as the year ticks over.
Here’s the whole idea in a nutshell. Every day of the year, starting from the 1st of January, you’re going to save just one penny more than you did the day before. So, on the 1st of January you set aside a single penny. It doesn’t matter if it came out of your pocket or you picked it up off the street. Just put it away somewhere and mark your calendar to show that you did it.
When the 2nd of January rolls around, you save 2p – that’s on top of the 1p you saved yesterday, so you’ve got 3p saved already. On the 3rd, you save 3p (for a total of 6p stashed away). After that you just keep on going to the end of the year. See? We told you it wasn’t going to be complicated.
So right now, you’re probably thinking that these amounts really don’t seem like they’d be worth saving. After all, even on the final day of the year you’ll only be putting away a grand total of £3.65, right? The funny thing is, even though the challenge is incredibly easy to complete, that doesn’t mean it’s not worth trying. In fact, following the challenge for an entire year actually nets you a grand total of £667.95 (or £671.61 if it’s a leap year)!