Fun is the last word to pop into mind when you think about saving money, but we all know that we’re more inclined to take part in an activity once there’s an element of fun thrown into the mix. We talk about saving money, it’s a financial goal that we throw around but how adept are you at actually doing it?
To turn this into a bit of a game, we have 10 money-saving challenges that you can do. Try one out for the entire year, or, mix it up and try a new challenge every month. To make it even more exciting, ask friends or family to join you in the challenge and if you’re a competitive person, this should spur you on to do better than the rest.
Personally, I intend on taking on Challenge 3 and Challenge 5. Let’s do this.
Challenge 1: The 52-Week Challenge
How does it work?
Ideally, you would begin this challenge in the first week of a new year, but fret not, you can still play catch up. Start by saving RM1 in week 1, and then add a Ringgit in each week. Here’s what it would look like:
Week 1 – Save RM1; Week 2: Save RM2; Week 3: Save RM3; Week 4: Save RM4.
Doable, right? When you reach week 52 you would have saved RM1,378.
Stretch the challenge
You don’t have to start with RM1, in fact, you can choose any amount you desire. You could even opt to save double the amount in each week. For example, week 1 – save RM1; week 2 – save RM2; week 3 – save RM4; week 4 – save RM8, and so on.
Tips
- Save your money in a clear jar and watch your savings grow right in front of your eyes. That should be motivation to stick to the challenge.
- Do this with your friends, colleagues, loved ones, and encourage each other as the weeks go by.
Difficulty level: Easy
Challenge 2: The Reverse 52-Week Challenge
How does it work?
If you prefer to get the hardest tasks out of your way first, this could be the challenge for you. It’s basically the same as the first challenge, just in reverse. You start by saving RM52, and then minus a Ringgit in each week. Here’s what it would look like:
Week 1 – save RM52; Week 2: save RM51; Week 3: save RM50; Week 4: save RM49.
You will save RM1,378 by the end of the challenge, but with each passing week, it gets easier.
Difficulty level: Easy
Challenge 3: Match Your Spend
How does it work?
Personally, I think this is a great way to challenge you to rethink your “wants” and your “needs”. For every single expense you make (aside from your necessities), you have to set aside the exact amount into your savings jar.
For example, you buy coffee at RM15 in the morning, and also decide to buy a top from H&M for RM29.90. Later that evening, you have to put aside RM15 + RM29.90 into your savings jar.
The best part is you’ll start to think about every single expense because there’s a lot more at stake and you may end up saving more as a result! It’s good training to curb impulse shopping and unnecessary expenses.
Stretch the challenge
What happens if you don’t spend any money in a day? Set aside a minimum savings amount that you have to allocate each day, that way, even if you’ve been good you still have money put into your savings jar.
Tips
- While you’re at it, track your expenses and savings in a log. By the end of the month, review your log and evaluate where you can further reduce spending for your next month.
- Start off with a goal, for example, “I want to reduce spending on Starbucks coffee” and use this challenge to help you curb wasteful spending.
Difficulty level: Medium
Challenge 4: A Budget Cap a Day Keeps the Debt Away
How does it work?
Though this might seem easy enough to do, you will be tempted throughout your day. For those whose willpower isn’t as strong, you’re in for a challenge. Set a budget to spend on anything you like. For example, RM10 per day. Look at it as an allowance, just like when we were back in school, and survive on that set budget.
This challenge will also test your creativity. How will you make this work for you? Survival skills kick in and it could be fun.
Stretch the challenge
The lower the budget, the more challenging this becomes. Some have even tried to survive on only RM5 per day, and though that might seem impossible in KL, you will find ways to make it work.
Tips
- Reduce spending where you can so you’ll have more of that budget to play with. For example, bring your own meals so you won’t have to spend on food.
- Ideally, do this with a friend or colleague so you’ll have a buddy to help keep you on track when you’re about to cave into temptation.
Difficulty level: Medium
Challenge 5: Track Your Expenses
How does it work?
Take the time to write down your expenses, or key it into your financial tracking app. While this may not translate into a direct money-saving challenge, it’s a good habit to instil and, indirectly allows you to save money.
How? By knowing exactly where each Ringgit spent goes to thus giving you the insights to know where to cut spending.
With our hectic schedules, even taking 5 minutes to do this will be a challenge. Even more so, to do it consistently over 30 days, or a year.
Stretch the challenge
Instead of just keying in your expenses, identify an expense that you want to cut out completely or reduce. For example, in week 1 you realise you spend on average, RM100 on coffee. Identify that as a goal you want to reduce. By week 2, you should see less money spent on coffee.
Tips
- If you’re a little more old-school and prefer to write things down (like I am), buy yourself a journal and jot down your expenses. Or download any of these budget tracking apps for a more seamless experience.
- Don’t drop the habit after a month, keep this going even while you’re undertaking any of the other challenges on this list.
Difficulty level: Easy
Challenge 6: Quit the Habit
How does it work?
Bad habits cost money. A pack of cigarettes can set you back RM17, while a night out during Happy Hour can set you back at least RM40 (for 3 pints of beer). If you smoke an average of 4 packs a month, that’s RM68 on cigarettes alone. If you head out for happy hour 3 times a week, that’s RM480 a month.
Kick the bad habit and save money. This one takes a little more resolve and commitment, but even if you attempt to do it for a month (or two), you’ll be saving money.
Stretch the challenge
Have a rewards and punishment system. For every week that goes by, reward yourself with a treat. For every week that goes by that you’ve indulged in the bad habit, pay a penalty into the savings jar. You could merge the “Match Your Spend” challenge here. For every pack of cigarettes you buy, RM17 goes into the savings jar.
Tips
- Try this during a month or occasion that requires you to be a little healthier. For example, if you’re training for the upcoming marathons, or if you have a new-born child at home.
- Tell your friends so that they’ll respect and encourage you. You’ll have to turn down plenty of social drinking invites, or just opt for coke! Either way, you’ll need your friends to tempt you less.
Difficulty level: Hard
Challenge 7: The 3-Day Pause
How does it work?
This challenge works best for those who love to shop, whether online or in the malls. It’s tempting, I know. You see a great deal on Lazada or Zalora and all you want to do is add to cart, and shop. But do you really need it? Yes, maybe, no? Take 3 days to reconsider your almost impulse purchase. If by the end of the third day, you still desire or need it as much as when you first saw it, then by all means, buy it. But we’re willing to bet you might have forgotten about it.
Stretch the challenge
Keep spare change in your wallet as you’re doing this challenge and leave the credit cards at home. This way, it’s even harder to shop on the spot. This, of course, applies to shopping malls only.
Tips
- For online shopping, add the item to your wish list first. Do not add it to your cart.
- If you’re still unsure, stretch the pause to 5 days and seek opinions from others.
Difficulty level: Medium (but hard for shoppers)
Challenge 8: Spare Change, Anyone?
How does it work?
Once you’re done with your day, take all the spare change from your pocket and wallet and place it into your savings jar. Your savings can range from 0.50 cents or less to a few RM, so you aren’t guaranteed a high amount. But it’s an exercise that allows you to recognise the value of every single cent.
Stretch the challenge
Combine this with the budget cap challenge, if you spend less than RM10 per day (for example), place the excess into your savings.
Tips
- Make this a habit when you see coins lying around your home.
Difficulty level: Too easy. Come on..
Challenge 9: Live On 50%
How does it work?
Here’s another extreme challenge for you. Once you’re done paying off necessities and bills, live on only 50% of your income and save the rest. You currently might be enjoying a cushy 80% of your income. Take that extra 30% and put it into savings.
For example, you earn 5,000RM. And you’re left with 3,000RM after deductions. The challenge now is to survive on 1,500RM for the whole month and to save 1,500RM.
This probably requires you to do the pause before shopping, to set a budget cap for each day, and maybe even to track your expenses.
Stretch the challenge
Just so you get a little more value out of this challenge, enrol yourself in a class or a hobby with that 50% income. This means you have even less to spend, but you have already invested in a personal development class or hobby. Money well spent and it may help take your mind off the other expenses you’re missing out on.
Tips
- Practice the pause before shopping.
- Set a budget cap for each day.
- Track your expenses!
- Quit your bad habits
Difficulty level: Hard
Challenge 10: The No Spend Challenge
How does it work?
Be afraid, be very afraid. We won’t sugar coat this for you. The challenge is exactly what the title implies – you don’t get to spend on anything except for necessities. A woman recently did the challenge in the UK and managed to save over $20,000 pounds.
That means you don’t spend on food (except groceries because you make your own meals), no social outings that cost money (so forget all your movie dates), and definitely no shopping!
Do you think you have what it takes?
Stretch the challenge
In order for the challenge to work, you have to set aside a budget for all your necessary expenses including bills, loan repayments, transport costs, etc. You get to set how difficult the challenge is. To stretch it, set a really low budget for travel costs which means you have to either cycle around, walk, or opt for the cheapest modes of transport.
Tips
- It’s not going to be easy and in fact, your social life may be impacted. Find hobbies that don’t cost much money. Get back to nature and take a hike. Read more books. Use this time wisely.
- This isn’t a challenge you can do with friends, but you will need their support. You will need them to encourage you on days you feel like giving up, and you especially need their patience to join you for activities that fit within your no spend challenge.
Difficulty level: Extremely hard with a possible adverse effect on your social life.
Let us know if you’ll be trying any of these challenges if you have any tips to share, and your experiences! We’ll love to hear from you.
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