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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

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    Last Updated on June 3, 2020

    How to Write SMART Goals (With SMART Goals Templates)

    How to Write SMART Goals (With SMART Goals Templates)

    Everyone needs a goal. Whether it’s in a business context or for personal development, having goals help you strive towards something you want to accomplish. It prevents you from wandering around aimlessly without a purpose.

    But there are good ways to write goals and there are bad ways. If you want to ensure you’re doing the former, keep reading to find out how a SMART goals template can help you with it.

    The following video is a summary of how you can write SMART goals effectively:

    What Are SMART Goals?

    SMART Goals

    refer to a way of writing down goals that follow a specific criteria. The earliest known use of the term was by George T. Doran in the November 1981 issue of Management Review, however, it is often associated with Peter Drucker’s management by objectives concept.[1]

    SMART is an acronym that stands for Specific, Measurable, Attainable, Relevant, and Time-bound. There are other variations where certain letters stand for other things such as “achievable” instead of attainable, and “realistic” instead of relevant.

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    What separates a SMART goal from a non-SMART goal is that, while a non-SMART goal can be vague and ill-defined, a SMART goal is actionable and can get you results. It sets you up for success and gives you a clear focus to work towards.

    And with SMART goals comes a SMART goals template. So, how do you write according to this template?

    How to Write Smart Goals Using a SMART Goals Template

    For every idea or desire to come to fruition, it needs a plan in place to make it happen. And to get started on a plan, you need to set a goal for it.

    The beauty of writing goals according to a SMART goals template is that it can be applied to your personal or professional life.

    If it’s your job to establish goals for your team, then you know you have a lot of responsibility weighing on your shoulders. The outcome of whether or not your team accomplishes what’s expected of them can be hugely dependant on the goals you set for them. So, naturally, you want to get it right.

    On a personal level, setting goals for yourself is easy, but actually following through with them is the tricky part. According to a study by Mark Murphy about goal setting, participants who vividly described their goals were 1.2 to 1.4 times more likely to successfully achieve their goals.[2] Which goes to show that if you’re clear about your goals, you can have a higher chance of actually accomplishing them.

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    Adhering to a SMART goals template can help you with writing clear goals. So, without further ado, here’s how to write SMART goals with a SMART goals template:

    Specific

    First and foremost, your goal has to be specific. Be as clear and concise as possible because whether it’s your team or yourself, whoever has to carry out the objective needs to be able to determine exactly what it is they are required to do.

    To ensure your goal is as specific as it can be, consider the Ws:

    • Who = who is involved in executing this goal?
    • What = what exactly do I want to accomplish?
    • Where = if there’s a fixed location, where will it happen?
    • When = when should it be done by? (more on deadline under “time-bound”)
    • Why = why do I want to achieve this?

    Measurable

    The only way to know whether or not your goal was successful is to ensure it is measurable. Adding numbers to a goal can help you or your team weigh up whether or not expectations were met and the outcome was triumphant.

    For example, “Go to the gym twice a week for the next six months” is a stronger goal to strive for than simply, “Go to the gym more often”.

    Setting milestone throughout your process can also help you to reassess progress as you go along.

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    Attainable

    The next important thing to keep in mind when using a SMART goals template is to ensure your goal is attainable. It’s great to have big dreams but you want your goals to be within the realms of possibility, so that you have a higher chance of actually accomplishing them.

    But that doesn’t mean your goal shouldn’t be challenging. You want your goal to be achievable while at the same time test your skills.

    Relevant

    For obvious reasons, your goal has to be relevant. It has to align with business objectives or with your personal aspirations or else, what’s the point of doing it?

    A SMART goal needs to be applicable and important to you, your team, or your overall business agenda. It needs to be able to steer you forward and motivate you to achieve it, which it can if it holds purpose to something you believe in.

    Time-Bound

    The last factor of the SMART goals template is time-bound (also known as “timely”). Your goal needs a deadline, because without one, it’s less likely to be accomplished.

    A deadline provides a sense of urgency that can motivate you or your team to strive towards the end. The amount of time you allocate should be realistic. Don’t give yourself—or your team—only one week if it takes three weeks to actually complete it. You want to set a challenge but you don’t want to risk over stress or burn out.

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    Benefits of Using a SMART Goals Template

    Writing your goals following a SMART goals template provides you with a clearer focus. It communicates what the goal needs to achieve without any fuss.

    With a clear aim, it can give you a better idea of what success is supposed to look like. It also makes it easier to monitor progress, so you’re aware whether or not you’re on the right path.

    It can also make it easier to identify bottlenecks or missed targets while you’re delivering the goal. This gives you enough time to rectify any problems so you can get back on track.

    The Bottom Line

    Writing goals is seemingly not a difficult thing to do. However, if you want it to be as effective as it can be, then there’s more to it than meets the eye.

    By following a SMART goals template, you can establish a more concrete foundation of goal setting. It will ensure your goal is specific, measurable, attainable, relevant, and time-bound—attributes that cover the necessities of an effectively written goal.

    More Tips About Goals Setting

    Featured photo credit: Estée Janssens via unsplash.com

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