December 26, 2024
6 Savings Challenges You Should Try In 2025
By : Ellie Brown
Savings are crucial as they help you meet emergency expenses. The New Year is a few days away, and now is the time to decide on saving strategies so you do not run out of money during the unexpected. It can be hard to stash away money, especially if you are on low wages or your income is unstable. Many people find themselves under the burden of debt, which is the most common reasons for a little or zero savings.
Every new year, you make financial resolutions. This year, you should establish a goal of saving a certain amount of money. You all know that you will have to keep aside a fixed sum of money every month. You usually choose a random figure that your budget allows, but this basic strategy does not work regardless of your income. You need to challenge yourself with the savings strategy.
It is not surprising that every year, people struggle with debt payments and often fall into debt as a result. Those on low wages struggle to stow away for a rainy day and rely on very bad credit loans with no guarantor from a direct lender when caught unawares by emergencies.
Savings challenge that you should try in 2025
Here are the savings challenges you should try in 2025:
1. A 52-week saving challenge
A 52-week challenge starts with depositing £1 in the week one, £2 in the week two, £3 in the week three and so on. Keep money in your savings account so you keep earning interest; however, the interest will be very nominal. The purpose of keeping it in a savings account is to stop yourself from dipping into it for your regular expenses.
If you want to make this challenge a bit easier, you can start stashing away in a decreasing order, meaning £52 in the first week, £51 in the second week, £50 in the third week and so on. It is easier to start with a higher contribution at the beginning of the year as you must have received some monetary gifts. You can straightaway out them into your savings account.
2. A 26-week challenge
This is an alternative to the aforementioned, aimed at those who get paid every other week. Instead of starting with £1, you should choose a higher amount. It can be £3, £4, or £5, depending on your income. The amount will increase by the same number every week. For instance, if you choose to set aside £5 in the first week, it should be £10 in the second week and £15 in the third week.
3. A no-spend saving challenge
This is the most common saving challenge. It requires a complete ban on discretionary expenses. You will be spending only on basic necessities, and the rest of your costs will be banned. It can be arduous to stick to a bare-bone budget. Many people get demotivated or desolate when they completely avoid eating out and give up in the middle.
Well, in order to stay motivated, you should start with a small, no-spend challenge. As you gain confidence, you can push the limits. The no-spend challenge can feel a bit difficult to stick to, but it will help you save a lot of money in the long run.
One of the most significant benefits of the no-spend saving challenge is that you will see substantial growth in your savings balance. It will keep you from relying on 15-minute loans with no credit check when emergencies crop up.
4. A monthly subscription saving challenge
It is likely that you have multiple subscriptions. In fact, you do not remember how much money you have been paying in the form of subscriptions. Streaming services and internet services are the two most common subscriptions, but in addition, news platforms, magazines and food delivery services will also be on the list.
You should aim to cancel out subscriptions that you do not use. Get your bank statement to know all the subscription services you have been using. You can read news free online. There is no need to subscribe for digital and paper print. Food delivery memberships should be cancelled out, especially if you are on a no-spend saving challenge. On the other hand, memberships do not help you save money on delivery charges. These kinds of membership programmes are ideal for only those who take them away every day.
Magazine subscriptions are a complete waste of money. As far as it is about OTT platforms, subscribe to those that you watch most.
5. A round-up saving challenge
A round-up saving challenge can help you achieve your savings goals. If you are on low wages, it is the best trick to increase confidence in yourself to grow savings. Every time you make a purchase, you need to round it up to the nearest pound and keep the difference in your savings account.
For instance, if you buy anything worth £27.30. you should keep the difference in your savings. Bear in mind that this will not significantly grow your savings. You should use it in combination with other saving strategies to achieve your goals.
6. No coffee challenge
You do not realise it, but the fact is that the coffee you buy every day on the way to your office costs you a few hundred pounds annually. If you are looking to save money and cannot opt for rigorous strategies to achieve your savings goal, you should use no coffee challenge.
The final thought
In 2025, you should set a goal of saving money. The more you put by, the better it is. Savings actually help you meet emergency expenses. It is a way cheaper alternative than loans as you do not have to pay interest. It will take some time, but consistent efforts will help you achieve your goals.