Putting money together every week and depositing a small amount in savings may seem easy, but can you keep up this habit in the long term? I bet when you hear the term “snowball” you already think of something bad, like debts piling up, don't you? But that's just a matter of point of view. So let's think about it another way.
The 52-week challenge we're about to propose consists of creating a snowball but in a good way. In this case, it will grow exponentially to give you a good amount of money at the end of the 52 weeks. Much better, isn't it?
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Why do people want to save money?
Most people want to save money and create a reserve that can be used for
- emergency expenses
- fulfilling dreams, such as traveling
- increasing their wealth or comfort
- buying a car or a house; and also
- accumulate over time to have a good supplementary pension.
However, many people think it's complicated to set aside part of their budget or that they don't have the discipline to avoid superfluous spending and save money. The fact is that few people are in the habit of saving. Spending money in the short term may be pleasurable, but it doesn't add up to a bigger goal, have you noticed?
Including a small reserve in your savings routine for a year, however, creates a new goal and, why not say it, a challenge to change your behavior. As a reward, in addition to the money you'll accumulate, you'll also realize how capable you are of managing your finances. In other words, you'll gain a taste for financial strategy and want to evolve! In this sense, the 52-week challenge has already been the turning point for many people's success! Can it be yours too? We'll show you the way and you decide.
Don't underestimate the 52-week challenge: learn how to raise over $10,000 in 1 year!
Although didactic, the 52-week challenge to save money exercises behavior that every investor needs to develop: the regularity of allocating part of your monthly income to investments. Therefore, it doesn't matter how much you invest each month in this exercise (although this will directly affect how much you accumulate at the end), but rather that you create the habit of saving.
So, although it may seem simple at first glance, to complete the 52-week challenge and save money, you need discipline, determination, and motivation. The challenge helps you to start saving, without you having to save large amounts from the start.
What's more, from the first week of January, you have exactly 52 weeks until the end of 2022, so this is the perfect time to start the challenge and save money. But if you happen to be reading this at the end of the year, that's fine too: save a little more now to achieve the same result or adapt the goal. It works either way!
Do you know what the 52-week challenge is?
As the name suggests, the challenge encourages you to save a certain amount of money every week for a year. The original proposal is to start the first week saving US$1, the second week US$2, the third week US$3, and so on, until you reach week 52 saving US$52. At the end of the period, if you follow the plan correctly, you will have saved US$1,378!
To keep better track of your savings and not run the risk of confusing the figures, it's worth using an app or spreadsheet to save money every month:
- the weeks;
- the amount saved each week;
- adding up the amount accumulated over time.
The truth is, however, that the beauty and effectiveness of the challenge lie in its simplicity and the exercise of creating the habit of saving money. Many people wonder how long 52 weeks are, and that's the number of weeks we have in the year! So the number of weeks is chosen precisely so that you can reach your financial goal in the same year that you start your journey!
Other visible effects of the 52-week challenge
We can also mention other effects that this challenge will bring to your life. For example, it's a smooth and effective way to build your first emergency fund or save up for a wonderful vacation next year. It's also a gateway to investment options, after all, you'll need to deposit these amounts in an account or investment, such as a CDs with daily liquidity.
And even though the return on savings today is not one of the most attractive, it is also one of the investment options most used by those who do the 52-week challenge to save money. It's easy to invest in, there's no IOF or income tax and, as the profits are only counted every 30 days, this is another factor that prevents you from withdrawing the money you've already accumulated.
What's more, if you're more comfortable with your money, you can always increase the amount to be deposited and rely on compound interest, which increases the return on your money. In other words, by putting this money into an investment, even a savings account, you'll end up with a lot more than US$1,378, right?
How does the 52-Week Challenge work?
The 52-week challenge to save money is quite simple, as we've already explained, but there are a few points you should pay attention to before starting it.
1. Have the goal of saving
First of all, you need to have the will to save. This gives you the motivation you need to control your budget and set aside a certain amount each week.
When you start this challenge without a goal, the risks of withdrawing the money before the 52-week deadline are much greater. That's why, to stick to it and complete the challenge, it's interesting to have a goal for which the money will be used at the end of the 52 weeks.
It could be for a vacation, a wedding, a down payment on a material asset such as a mortgage, or even a bid on the consortium you're participating in. The importance of the goal is that having a long-term vision helps you avoid spending the money you should be saving each week. Or even stopping the challenge halfway through and spending the money you've saved on anything.
2. Organize your finances
Another essential point for success is keeping your finances organized. If your budget is tight but you still want to save money, it's worth reviewing your accounts and seeing which expenses can be reduced or even eliminated. As well as having extra money left over, these savings will help to ensure that the plan is followed correctly to the end, guaranteeing the expected result.
3. Have discipline
Discipline is a fundamental factor when it comes to financial control. For the 52-week challenge to be successful, it is essential to stick to the plan, i.e. the schedule of deposits. But it doesn't stop there: you also need to maintain discipline when it comes to organizing your finances. This means avoiding impulse purchases and possible debts, which can compromise your budget.
4. Use a financial control app
We talk all the time about the importance of maintaining financial control so that, as well as achieving stability, the goal of saving money is achieved as planned in the challenge.
In this sense, having a financial control app to record the month's expenses and better control income can make it even easier to complete the 52-week challenge. This tool also helps you better understand how your money is spent and what you can do to change and improve your spending habits.
Tips to help you meet the 52-week challenge
So come on, it's time to put the plan into practice. Here are some tips for saving money during the 12 months of the year.
Investing
As I mentioned earlier, one of the aims of the challenge is to get you into the habit of saving. So, if you want to start investing, you can pool your savings and invest in an investment that suits your profile and needs. However, if that's not your intention, you can use the money you've accumulated to achieve other goals.
The 52-week money-saving challenge is a simple, practical, and easy way to start saving money, precisely because you can do it with a small slice of your income. But, as you saw in the previous topic, the simple fact of choosing which account to put the money from the 52-week challenge into is already an exercise in analyzing what yields the most. In other words, you're already evaluating the options and choosing the investments that will bring you the most return, which is what every investor does, even the most experienced ones.
Start whenever you want
The advantage of this challenge is that you can start at any time of the year, whether it's January or July. Start counting the 52 weeks from the moment you start, you can even use a spreadsheet to save money every month so you don't get lost throughout the year. But as I've already said, it's even better if you save that amount for an already established financial goal.
For example, if you want to get married in a year, start saving that amount and preparing. Even if at the end of the 52-week challenge you don't have the full amount to reach your goal, you'll certainly be a lot closer.
Invite friends, children, and family to take part in the 52-week challenge together
Sometimes we need partners for a challenging journey, don't we? That's why inviting relatives and friends to save together is a great strategy. One can remember the installments and motivate the other throughout the 52 weeks, as well as being the ideal companion to analyze where to deposit the money or even spend it together on a trip when the challenge is over.
For children, as well as being exciting, the 52-week challenge will also be a good basis for financial education. In some situations, parents can ask their children questions about their decisions to spend their allowance or take part in the challenge, for example. In addition, completing the 52 weeks of savings will also create a very important savings awareness for the child, I recommend it!
Program automatic applications to your account or investment
There are some features available in applications and Internet banking that allow you to program automatic applications from your current account to an investment, such as savings, direct treasury, or private pension.
In this case, to automate the process, you need to make a one-off deposit. If you schedule weekly deposits of US$25.00, for example, you will have accumulated at least US$1,300 by the end of the 52-week challenge.
How to save money with the 52-week challenge tables
Many people do the 52-week money challenge using improvised spreadsheets. But these can have some management flaws. If you also prefer to keep track this way, my tip is to use the free spreadsheets also offered by the app. For example, Level 1 of the 52-Week Challenge, where you save US$1,378. Or, for the more daring, Level 10, where you can save up to R$13,780 in a year!
Use spreadsheets to help you meet the challenge
You can also make your monthly money table according to the amount you have available to save each month. Or use a ready-made table if you want something simpler and less technological to keep track of. Here are two examples:
Week | Amount to deposit | Accumulated amount | Week | Amount to deposit | Accumulated amount |
---|---|---|---|---|---|
1 | US$ 1,00 | US$ 1,00 | 27 | US$ 27,00 | US$ 378,00 |
2 | US$ 2,00 | US$ 3,00 | 28 | US$ 28,00 | US$ 406,00 |
3 | US$ 3,00 | US$ 6,00 | 29 | US$ 29,00 | US$ 435,00 |
4 | US$ 4,00 | US$ 10,00 | 30 | US$ 30,00 | US$ 465,00 |
5 | US$ 5,00 | US$ 15,00 | 31 | US$ 31,00 | US$ 496,00 |
6 | US$ 6,00 | US$ 21,00 | 32 | US$ 32,00 | US$ 528,00 |
7 | US$ 7,00 | US$ 28,00 | 33 | US$ 33,00 | US$ 561,00 |
8 | US$ 8,00 | US$ 36,00 | 34 | US$ 34,00 | US$ 595,00 |
9 | US$ 9,00 | US$ 45,00 | 35 | US$ 35,00 | US$ 630,00 |
10 | US$ 10,00 | US$ 55,00 | 36 | US$ 36,00 | US$ 660,00 |
11 | US$ 11,00 | US$ 66,00 | 37 | US$ 37,00 | US$ 703,00 |
12 | US$ 12,00 | US$ 78,00 | 38 | US$ 38,00 | US$ 741,00 |
13 | US$ 13,00 | US$ 91,00 | 39 | US$ 39,00 | US$ 780,00 |
14 | US$ 14,00 | US$ 105,00 | 40 | US$ 40,00 | US$ 820,00 |
15 | US$ 15,00 | US$ 120,00 | 41 | US$ 41,00 | US$ 861,00 |
16 | US$ 16,00 | US$ 136,00 | 42 | US$ 42,00 | US$ 903,00 |
17 | US$ 17,00 | US$ 153,00 | 43 | US$ 43,00 | US$ 946,00 |
18 | US$ 18,00 | US$ 171,00 | 44 | US$ 44,00 | US$ 990,00 |
19 | US$ 19,00 | US$ 190,00 | 45 | US$ 45,00 | US$ 1.035,00 |
20 | US$ 20,00 | US$ 210,00 | 46 | US$ 46,00 | US$ 1.128,00 |
21 | US$ 21,00 | US$ 231,00 | 47 | US$ 47,00 | US$ 1.128,00 |
22 | US$ 22,00 | US$ 253,00 | 48 | US$ 48,00 | US$ 1.176,00 |
23 | US$ 23,00 | US$ 276,00 | 49 | US$ 49,00 | US$ 1.225,00 |
24 | US$ 24,00 | US$ 300,00 | 50 | US$ 50,00 | US$ 1.275,00 |
25 | US$ 25,00 | US$ 325,00 | 51 | US$ 51,00 | US$ 1.326,00 |
26 | US$ 26,00 | US$ 351,00 | 52 | US$ 52,00 | US$ 1.378,00 |
Conclusion
The most important thing about the 52-Week Money Challenge is not how much you save, but the realization that you can follow an investment plan. For some people, especially the many young people who have little or no savings, the 52-Week Money Challenge offers a direct and often necessary motivation to help save.
The big goal here is not the pot of gold at the end of the challenge, but to develop the habit of always saving money and becoming more closely involved with your finances, i.e. taking a strategic view of them.
Even if you don't want to repeat the challenge the following year, the good habits will already be part of your life, I guarantee it! And that's the first big step towards gaining wealth and working towards your financial goals.
What is the 52-week challenge?
The 52-Week Challenge is a technique that helps you save money, even if you only save a dollar a week. So, week after week you save an extra 1 real and, at the end of 1 year, you'll have saved US$1,378!
How to save 10,000 in 1 year?
To save 10,000 in 1 year, we recommend that you use the 52-week challenge and save 10 dollars a week. That way, week after week, you'll add another 10 dollars to the amount you've already saved.
How can you save 20,000 in a year?
To do that, you need to save a larger amount. So start the first week of the 52-week challenge by saving 20 dollars, adding another 40 dollars to the amount in the second week, another 60 in the third week, and so on.
What are 52 weeks?
52 weeks is the number of weeks in a year and is used precisely to achieve your goal within the chosen year.
Do you have questions or suggestions? You can leave them in the comments!
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