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Hacking the 52 Week Money Challenge the Smart Way

Hacking the 52 Week Money Challenge the Smart Way

The financial savings picture in America (and the world) isn’t a good one, at multiple income levels. For example: across people with incomes less than $25,000, 38% have $0 saved. For those with incomes from $100,000 to $149,999, it’s not much better: 18% have $0 saved, and 26% have less than $1,000.[1]

This obviously can create problems in the future. Nearly half of American adults can’t cover an emergency expense of $400 without selling something or borrowing money, and 31% of non-retired adults have no retirement savings or pension at all.[2]

Is there a way to get better at saving money? Yes, here’s a challenge you can take to turn around the situation.

The 52 Week Money Challenge

The 52 Week Money Challenge is fairly simple.

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  • On Week 1, you deposit $1 in savings. Now your total is $1.
  • On Week 2, you deposit $2, for a new total of $3.

If you follow this for 52 weeks, your eventual total for the year will be $1,378.

Here’s a table showcasing it visually:

    The 52-Week Money Challenge works because of habitual momentum. You have a commitment now to do something every single week, and if you achieve it, it will better your financial situation. Charles Duhigg, a leading researcher on habits, has explained that most habit formation takes place as cue, routine, and reward.[3] The 52-Week Money Challenge is the same way:

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    • Cue: Every week, you remember you need to do this.
    • Routine: You keep doing it!
    • Reward: Now you have more savings.

    Hacking the Money Challenge

    How do you make the conscious decision not to spend dollars on fun things?

    For example, you know there’s a good chance you’ll spend more money during the holidays— flights to see family members, gifts for family and co-workers, maybe even New Year’s Eve plans. You might spend more in the summer too: vacations and summer sales.

    How do you make sure you don’t do that and stay on track with your 52-Week Money Challenge? There are three main hacks if you want to get the most out of the 52-Week Money Challenge:

    Automate Money Storing and Transferring

    The whole point of automation is making things simpler, and that can work in the 52-Week Money Challenge too. Just automate out the payments beforehand and you’ll never even think about it. It will just not be there—it’ll be savings. Your bank can help you with this, as can apps like Qapital.

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    Combine the Challenge with Another Goal

    Consider merging the 52-Week Money Challenge with a weight loss challenge— lose 1 pound per week, for example— or a spending challenge. You could reduce the number of times you eat out each week in a given month (8, 6, 4, 2) and start from a smaller number each month (7, 5, 3, 1 the next month; then 6, 4, 2, 0).

    If you’re tying a money-saving challenge (the 52-Week Money Challenge) with another challenge that will directly impacting savings (eating out less or trying to lose weight— or both!), there will be increased motivation to save money.

    Go Beyond the 52 Weeks

    Each year you’d save $1,378. In five years, you’d have $6,890. In 10 years, $13,780. It could lead to some pretty nice vacations, if nothing else.

    Just don’t stop. The 52-Week Money Challenge is a low impact way to save money.

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    Challenge Accepted

    Go do it. Do the 52-Week Money Challenge. And think on some of the hacks, or create your own— for example, if Week 1 is $2 and then Week 2 is $4, you’d double your savings ($2,756) for the year. In 10 years, you’d have over $27,000 in savings.

    That would be impressive given the numbers we initially discussed. Most Americans have less than $1,000 in savings, so even if you just do the basic 52-Week Money Challenge with the hacks discussed, you’ll end the year with more than most people.

    Saving is important, whether the savings leads to leisure pursuits or solving emergencies. Start with the 52-Week Money Challenge and see how easy it can be.

    Featured photo credit: http://money.cnn.com/2017/05/10/retirement/retirement-savings-return/index.html via money.cnn.com

    Reference

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    Brian Lee

    Chief of Product Management at Lifehack

    100 Incredible Life Hacks That Make Life So Much Easier 10 Best New Products That People Don’t Know About Book Summary: The Power of Habit in 2 Minutes 1 Minute Book Summary: How To Make People Like You in 90 Seconds or Less 2 Minutes Book Summary: Thinking Fast and Slow

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    Last Updated on May 24, 2019

    How to Be Productive at Home and Make Every Day a Productive Day

    How to Be Productive at Home and Make Every Day a Productive Day

    If you’ve ever wondered how to be productive at home or how you could possibly have a more productive day, look no further.

    Below you’ll find six easy tips that will help you make the most out of your time:

    1. Create a Good Morning Routine

    One of the best ways to start your day is to get up early and eat a healthy breakfast.

    CEOs and other successful people have similar morning routines, which include exercising and quickly scanning their inboxes to find the most urgent tasks.[1]

    You can also try writing first thing in the morning to warm up your brain[2] (750 words will help with that). But no matter what you choose to do, remember to create good morning habits so that you can have a more productive day.

    If you aren’t sure how to make morning routine work for you, this guide will help you:

    The Ultimate Morning Routine to Make You Happy And Productive All Day

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    2. Prioritize

    Sometimes we can’t have a productive day because we just don’t know where to start. When that’s the case, the most simple solution is to list everything you need to get accomplished, then prioritize these tasks based on importance and urgency.

    Week Plan is a simple web app that will help you prioritize your week using the Covey time management grid. Here’s an example of it:[3]

      If you get the most pressing and important items done first, you will be able to be more productive while keeping stress levels down.

      Lifehack’s CEO, Leon, also has great advice on how to prioritize. Take a look at this article to learn more about it:

      How to Prioritize Right in 10 Minutes and Work 10X Faster

      3. Focus on One Thing at a Time

      One of the biggest killers of productivity is distractions. Whether it be noise or thoughts or games, distractions are a barrier to any productive day. That’s why it’s important to know where and when you work best.

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      Need a little background noise to keep you on track? Try working in a coffee shop.

      Can’t stand to hear even the ticking of a clock while writing? Go to a library and put in your headphones.

      Don’t be afraid to utilize technology to make the best of your time. Sites like [email protected] and Simply Noise can help keep you focused and productive all day long.

      And here’s some great apps to help you focus: 10 Online Apps for Better Focus

      4. Take Breaks

      Focusing, however, can drain a lot of energy and too much of it at once can quickly turn your productive day unproductive.

      To reduce mental fatigue while staying on task, try using the Pomodoro Technique. It requires working on a task for 25 minutes, then taking a short break before another 25 minute session.

      After four “pomodoro sessions,” be sure to take a longer break to rest and reflect.

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      I like to work in 25 and 5 minute increments, but you should find out what works best for you.

      5. Manage Your Time Effectively

      A learning strategies consultant once told me that there is no such thing as free time, only unstructured time.

      How do you know when exactly you have free time?

      By using the RescueTime app, you can see when you have free time, when you are productive, and when you actually waste time.

      With this data, you can better plan out your day and keep yourself on track.

      Moreover, you can increase the quality of low-intensity time. For example, reading the news while exercising or listening to meeting notes while cooking. Many of the mundane tasks we routinely accomplish can be paired with other tasks that lead to an overall more productive day.

      A bonus tip, even your real free time can be used productively, find out how:

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      20 Productive Ways to Use Your Free Time

      6. Celebrate and Reflect

      No matter how you execute a productive day, make sure to take time and celebrate what you’ve accomplished. It’s important to reward yourself so that you can continue doing great work. Plus, a reward system is an incredible motivator.

      Additionally, you should reflect on your day in order to find out what worked and what didn’t. Reflection not only increases future productivity, but also gives your brain time to decompress and de-stress.

      Try these 10 questions for daily self reflection.

      More Articles About Daily Productivity

      Featured photo credit: Unsplash via unsplash.com

      Reference

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