How to Do the 52-Week Money Challenge

What Is the 52-Week Money Challenge?

The 52-week money challenge is a fun way to push yourself to save more money. The most common way to complete the challenge is to start by saving just $1 in week one and increasing what you save by $1 each week, saving $2 in week two and $3 in week three, all the way up to $52 in week 52.

By starting small and gradually increasing what you save, you can save a total of $1,378 in a year.

How to Complete the 52-Week Money Challenge

You could start the challenge at the beginning of the year as one of your money resolutions, or begin whenever works for you. To complete the challenge, follow this weekly schedule.

Complete the 52-Week Money Challenge

Benefits of the 52-Week Money Challenge

The biggest benefit of the 52-week money challenge is that you'll end it with over $1,000 in the bank. Beyond that, other reasons to complete the challenge include:

• Make saving a habit. Completing the 52-week money challenge can help you build confidence in your ability to save consistently. At the end of the challenge, use your momentum to start another challenge or automatically save a portion of each paycheck.
• Practice budgeting. Completing the challenge requires you to stick to a plan for how you'll direct your income toward spending and saving. If you aren't used to it, learning to budget can take some adjusting. But it's a lifelong financial skill that can help you achieve your biggest financial goals, such as reaching retirement.
• You can customize it. You can tweak the challenge to meet your needs. For example, you may up the ante by increasing your savings amount by $5 per week, rather than $1. Or, if you're nervous that changing your deposits each week is a lot to keep track of, you can fully automate the challenge by saving $26.50 each week for a year. You'll still end up with $1,378 in the bank.
• Buddy up for accountability. You can do the 52-week challenge alone, but challenging a friend or joining a group to save alongside you can make the challenge more fun. Plus, you'll be less tempted to bail if you've committed to saving with a team.

Learn more: Ways to Save Money

Where to Stash Your Savings

Keep the money you save during the 52-week savings challenge separate from your checking account. You can open a savings account online or through a local bank. If you want to earn interest without sacrificing flexible access to your funds, a high-yield savings account may be the way to go.

Once you stash your money in the account, avoid the temptation to tap into it for a purchase. Building up a healthy store of funds can help you build financial stability. Experts recommend aiming to keep three to six months' worth of expenses in an emergency fund, and the 52-week money challenge is a strong way to start. From there, keep building savings to grow an emergency fund that can cover you when you need it most.

If you've already built a hefty emergency fund, you can use the 52-week challenge to set aside a large sum of cash for a future purchase or invest it towards retirement in a traditional or Roth IRA.

Learn more: Ways to Make Money With Your Savings

Keep Saving to Meet Your Goals

The 52-week challenge is a great way to build up your savings and end the year with a hefty cash reserve. But make it a goal not to finish your saving journey just because the challenge ends. Aim to keep growing your savings for more financial stability.

Also, as you complete the challenge, channel the good money habits you're learning by ticking off other major financial to-dos like tackling high-interest debt and automating your retirement savings.