How You Can Participate in the Challenge and Start to Build Your Savings
Start the Money Fit 52-week Savings Challenge today, and make a difference in your financial future with each of your paychecks for the next year. With this Challenge, you will develop an ongoing commitment to saving for emergencies and short-term goals. Having enough funds saved for emergencies and goals is the greatest stabilizing factor in your personal and household finances.
The 52-Week Savings Challenge
Starting your own challenge is easy. Just complete the information in the form below to see what your week-by-week or monthly savings goals will be. Don’t forget to submit the form so you can have the details automatically sent to your inbox. You will also see the total savings amount you will likely have by the end of your savings challenge.
The Challenge Instructions
To increase your chances of success with this savings challenge, set up a system that makes contributing to your savings as easy as breathing and just as automatic. Use the checklist from each week to set up your own savings system.
What Would You Do With A Few Thousand Extra Dollars?
Over the 12 short months of this Challenge, you can build funds that could help the typical household prepare for one or more of the following:
Buy a new refrigerator
Cover your living expenses for a month in case of unemployment
Fix a looming problem with your car or truck
Fly to Europe with your spouse or partner for a week-long vacation
Fund a business startup venture
Get a new, quieter dishwasher
More than match your full deductible for a major medical issue
Move into a nicer apartment that requires a larger first- and last month’s deposit
Pick out a new master bedroom furniture set
Repaint your house
Replace your washer and dryer with deluxe models
Take your significant other on an eight-day ocean cruise
Everyone will come to this challenge for different reasons. Regardless, we recommend that you direct at least a portion of your savings into an emergency savings fund that you will not touch except in times of job loss, major medical bills, or car accidents.
Week 1: Commit, Share, and Invite
☐ Complete and submit the Challenge Form above to receive your Savings Challenge details by email.
☐Commit to Your Savings Challenge. Start by committing to save just 1% of any take-home paycheck you get during the first month.
☐ Commit to adding 1% of any gift, tax refund, or any other source of income to your savings.
☐ Identify your Savings Goals.
☐ Share your Goals on Social Media or with a close friend.
☐ Invite family and friends to join you on your 52-week savings challenge journey to financial security by sending them to https://www.moneyfit.org/blog/52-week-savings-challenge.
☐ Deposit 1% of your take-home pay into a Savings Account. If you don’t get paid this week, add $10 to kickstart your fund.
Week 2: The Accounts
☐ Find a bank or credit union in your area with one branch, no drive-through, and no evening or weekend hours in order to use a financial institution that makes it inconvenient to access your savings funds. Do your research to make sure it does not charge fees for opening saving accounts and does not have an unreasonable minimum balance requirement.
☐ Open a savings account at this bank or credit union for each of your savings goals. Deposit at least $10 into each of these accounts. Do not request an ATM or debit card.
Week 3: Automation
☐ Set up automatic transfers from your checking to each savings account. Consider using our Money Pie Calculator to determine how to divide your savings each month.
Weeks 4, 8, 12, 16, 20, 24, 28, 32, 36, 40, 44, 48 and 52: Accountability Report
☐ Connect with the person(s) you shared your Goals with during Week 1 to let them know how things are going. Ask for his or her continued support and encouragement. Share your successes and challenges. Ask for both insight and understanding.
Week 43: Direct Deposit
☐ While setting up a direct deposit with your employer is generally the recommended method of ensuring your deposit money into your savings account(s) without fail, doing so before week 43 can lead to a lot of extra work. This challenge asks you to increase the percentage of your savings each month until you hit 10% in the tenth month, after which it remains at 10%. At this point (Week 43), set up the direct deposit with your employer to send 10% of your take-home pay to your savings account(s) going forward.
☐ If you are unable to set up a direct deposit through your employer, set up an automatic monthly transfer at your bank or credit union from your checking to your savings accounts. If the savings accounts are at a different institution from your checking account, you might look into setting up an automatic, monthly online bill pay, using the name of the bank or credit union where your savings accounts are held, and adding your savings account number to the bill payment.
Week 52: Re-evaluate and Recommit
☐ Now that you’ve made it through the Challenge, consider how far you have come, what your major obstacles and challenges have been, and what the best thing you did to achieve your success has been.
☐ Ask yourself if your current savings habits are acceptable. Many individuals and households decide to take their savings habits to the next level and save between 15% and 25% of their household income. This is a personal and household decision, but now is a good time to consider where you hope to be savings-wise in the future.
Also, now is a great time to re-commit to yourself (and to your friend from Week 1) to keep going. Now that you have your savings on autopilot, commit to sharing your positive Savings Challenge experience with others.
