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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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    1 How to Set Realistic Short Term Goals for a Successful Life 2 How to Start Setting Strategic Goals for a Successful Life 3 Why Is Behavior Change So Hard? Science Explains It 4 6 Ways to Finish Strong (When Your Momentum Is Low) 5 10 Good Habits to Have in Life to Be More Successful

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    Last Updated on November 16, 2020

    10 Good Habits to Have in Life to Be More Successful

    10 Good Habits to Have in Life to Be More Successful

    Habits are behaviors and patterns that you showcase by default. Many good habits to have will enable you to carry out crucial activities like taking a shower, brushing your teeth, and getting ready for work. 

    Interestingly, you follow this routine every day without thinking twice. Your unconscious daily habits create room for your brain to perform more advanced activities like problem-solving and choosing what book to read.

    Everyone has habits, and several of those habits are activated every day. I would classify them into three groups:

    • Habits that you hardly notice as they have become a major part of your life, such as brushing teeth or getting dressed.
    • Good habits to have to be more successful, like eating healthy, exercising, and reading books.
    • Habits that are harmful, like procrastinating, smoking, or overeating.

    Good habits are fundamental to becoming successful in life. Yet, as significant as habits are, some lack the knowledge of their capabilities.

    While much of the emphasis falls on bad habits to break, it’s just as important to focus on good habits to have and cultivate in your daily routine.

    Here, we’ll talk about 10 good habits to have to be more successful in life.

    1. Begin Your Day with Meditation

    I recommend mindful meditation early in the morning. This practice helps you to place yourself in the present moment. Consequently, it enables you to be mindful of challenging situations during the day.

    Different stressors may trigger as you go through the day; meditation helps you to remain calm before taking on the challenges.

    Personally, it helps me to devise strategies and think about ideas. Meditation is a good habit to have if you want to be connected to what’s significant in your life.

    2. Be Grateful for What You Have

    It’s not uncommon to waste time thinking of what’s not enough. You become immersed in those daunting challenges. However, challenges justify the presence of hope. The only strategy you have to stop focusing on your problems is to focus on what you have.

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    Gratitude is a time-tested pathway to success, health, and happiness. It redirects your focus to what you have from what you lack. Try writing a list of things you’re grateful for each day in a gratitude journal, or make it a habit to say one thing you’re grateful for when you sit down to dinner with your family.

    3. Smile

    Can you pause and smile before you continue reading this?

    Now, here is what just happened based on research conducted by the Association for Psychological Science; you set a pace for living a happier life when you smile. A genuine smile, or what’s called a Duchenne smile, is a good habit to have if you want to find spiritual, emotional, and mental peace of mind.[1]

    Smiling induces the release of molecules that function towards fighting stress. The physiological state of your body determines the state of your mind. When you slouch or frown, your mind takes cues relating to unhappiness and depression. However, once you adjust yourself by putting on a smile, you begin to feel a new level of excitement and vibrancy.

    4. Start Your Day With a Healthy Breakfast

    Starting your day with a healthy breakfast is a good habit to have and forms a crucial part of your life. Nevertheless, about 31 million Americans skip their breakfast each day.[2]

    If you are fed up hearing that breakfast is a crucial component of your day, you are only fighting the truth. If you want to become more successful, you need to “break your fast” with healthy foods every morning.

    This habit is not difficult to form if you usually rush out the door every single morning. You can wake up earlier to fix yourself a meal so you don’t break down during the day.

    Get inspired by these 20 Healthy Breakfast Choices That Will Save You Time.

    5. Exercise Daily

    One of the good habits to have is to exercise your body and muscles on a daily basis. You don’t have to run a marathon or lift tons of weights. You only need to engage in activities that oxygenate your blood and inject endorphins in your body, trying to squeeze in at least 15 minutes every day.

    Jack Dorsey, the CEO of Twitter, classified exercise as a good habit to maximize his already jam-packed schedule.[3] He said:

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    “I wake up by 5, meditate for 30 minutes, seven-minute workout times three, make coffee, and check-in.”

    He said on Product Hunt that he follows this routine every day as it gives him a steady-state that empowers him to be more productive.

    6. Manage Your Time

    Another good habit is the act of managing your time effectively. This goes a long way toward impacting your achievement.

    Time management is what separates the successful from the rest of the world as we all possess the same amount of time. How you leverage time determines your potential to succeed in life[4].

    Good habits to have: Time management tips

      So how do you manage your time effectively?

      Here’s Jack Dorsey’s recommendation in one of the Techonomy events:

      “I accomplish effective time management by theming my days and practicing self-discipline. These themes help me handle distractions and interactions. If a request or task does not align with the theme for that day, I don’t do it. This sets a cadence for everyone in the company to deliver and evaluate their progress”.

      And this is Dorsey’s weekly theme layout:[5]

      • Monday – Management
      • Tuesday – Product
      • Wednesday – Marketing and growth
      • Thursdays – Developers and partnerships
      • Fridays – Culture and recruiting
      • Saturdays – Taking off
      • Sundays – Reflection, feedback, strategy, and preparing for Monday

      No wonder he was able to run two companies when others were struggling with one job.

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      7. Set Daily Goals With Intentions

      Everyone has goals, whether they relate to business or personal life. The truth is, we’re all tending towards a particular direction. Nevertheless, while long-term goals can offer you direction, it’s your daily goals that help you develop short-term goals that are essential for your success.

      Long-term goals may not give you the motivation you need to keep on, but when you implement your short-term milestones daily, you become fired up, and you can overcome the challenges that come with taking on bigger tasks.

      Here’s the main truth: Successful people don’t set goals without establishing their intentions. According to Jennifer Cohen of Forbes,[6]

      “What helps you to achieve your desired expectation is ensuring intentions accompany your daily goals.”

      8. Seek Inspiration

      It is usually difficult to be inspired for a considerable length of time. Sometimes, you become discouraged and feel like giving up on your goals when things are not working out as intended.

      A practical approach to stay on top of the situation is to inspire yourself each day. When you wake up in the morning (after meditation), watch some motivational videos, and let the story of great leaders inspire you.

      Establish what Anthony Robbins called the “hour of power.” Determine how many minutes you spend, but make it count. Inspiration is the fuel for achievement because when you can conceive it in your mind, you can accomplish it.

      Michal Solowow, an investor and the founder of Mitex, puts it this way[7]:

      “The problems I encounter in everyday life motivate me to find solutions. This is a self-propelling mechanism. Becoming a billionaire was never a motivating factor.”

      9. Save Steadily, Invest With All Prudence

      I can’t exhaust the good habits to have without talking about saving and investing. Most times, you overlook the significance of saving for the future when you are living in your present moment. According to CNBC, a $1000 emergency will propel several Americans into debt.[8]

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      However, it is not enough to save, and you must invest your funds and be wise with them. If you pay attention to this now, you will set yourself up for a life of success in the future. Ensure you save at least six months in your emergency account so you can be prepared for any future emergency.

      If you’re looking for a simple way to save money, check out the following video:

      10. Budget and Track Your Spending

      Benjamin Franklin warned of taking the precaution of little expenses. He said:

      “A small leak sinks a great ship.”

      It is easy to discard little expenses, but the truth is they always add up. This happens when you fail to budget.

      Budgeting is a good habit to have, and it can impact your financial life significantly. The money you spend on extravagant lifestyles can be saved and invested in your future instead.

      The Bottom Line

      Endeavor to start developing good habits to have to become more successful as you journey through life. The quicker you cultivate them, the faster you will achieve your goals.

      More About Cultivating Good Habits

      Featured photo credit: Andrijana Bozic via unsplash.com

      Reference

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