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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

    More by this author

    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 November 14, 2018

    Have You Fallen Into the ‘Busy’ Trap? Here’s Your Way Out

    Have You Fallen Into the ‘Busy’ Trap? Here’s Your Way Out

    Do you find yourself constantly feeling busy? Or, maybe you feel like you have too much on your plate? Perhaps you have a to-do list with no end in sight, or many responsibilities to juggle on a daily basis at work. When you get home, you have household responsibilities to take care of, too, and it just seems like you never have much time for a breather.

    Being busy is good, it’s better than not having anything to do and letting time slip away. But, what many people don’t realize is, being busy doesn’t always mean you’re being productive. The more time you take to complete something does not equal to more success. Many people end up falling into this trap as they pack their day with tasks and errands that may sometimes produce little outcome or output for the effort that they’ve put in.

    For example, let’s say that your washing machine at home broke down and you need to fix it. Instead of calling the handyman to come, your husband decides he’s going to fix the machine. He ends up spending half a day figuring out the machine, and does eventually fix it. He did however have to make a trip to the tool shop to buy some extra tools and parts for the machine. Now, if you had called the handy man, it would probably have taken the handyman much less time, and he would have all the necessary tools and parts already, because that is his job. So in this instance, was your husband’s time and effort worth it? Oh, and because he took half the day fixing the machine, you now had to take over his duties of dropping the kids off at soccer and swim practice.

    We Need Not Be That Busy

    I hope you would agree, that it would have been ideal to delegate this task to the handyman. That would have saved you time and effort, so that you and your husband could focus on doing other things that were more important to you, like being there for your kids or spending time with each other. This is just one example of how we often impose busyness on ourselves without us even realizing it.

    But, I’m going to show you just how you can gain quality time from external sources. Whatever big goals or ambitions that you may have, it’s normal for them to involve a lot more of your time than you first expect. I’m talking about things like starting a new business, changing careers, perhaps even moving to a new city. New challenges often involve things that are outside of our experience and expertise, so covering all the bases ourselves is sometimes not feasible as it takes too much time to learn and do everything.

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    You Are Just One Person

    At the end of the day, you are just one person, and you have a limited amount of time. So, you have to do things that are meaningful to you. While an overall goal may be meaningful, not all of the milestones needed to get there may be meaningful. Because we all have our strengths and weaknesses, likes and dislikes, not every task will be enjoyable or all fun & games. Some simply require pure willpower and discipline to grind through. And that is where delegation comes in.

    What is Delegation?

    You may hear this term a lot in the business or corporate world; it’s an effective way for managers to distribute (or sometimes avoid!) work. But, that’s not what I’m referring to. Instead, delegation means leveraging time from an outside source to give you opportunities to increase your quality time. By outside source, we simply mean that it’s not your own time that you’re spending.

    What Should You Delegate?

    To delegate effectively, it has to be done with deliberate intention. So the aim of delegation is to create more quality time for yourself. There are 3 types of tasks that you should generally delegate, called the Delegation Triangle.

    The first are tasks you don’t enjoy doing. These are things that you know how to do, but don’t enjoy. Second, are tasks you shouldn’t do. These are things you know how to do and may even enjoy, but may not be the best use of your time. Third, are tasks you can’t do. These are things that need doing, but you don’t have the skills or expertise to follow through with them at this moment.

    Have a look through your daily tasks and responsibilities, and see if you can fit them under these 3 categories.

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    Pitfalls of Delegation

    Using the Delegation Triangle, you can decide which tasks are worth delegating. In theory, it might look easy to sort actions at first glance; but often, it’s actually harder than you think! 

    One such example, is diverting time on tasks you shouldn’t do. Let’s go back to the washing machine example. Your husband decides to fix it on his own instead of simply getting an expert to fix it. Why? Because it’s probably a challenge he enjoys, and it’s an accomplishment that would bring him satisfaction. However, if the value of the task is too low, you really ought to delegate it to others.

    Sometimes, when you have a larger goal in mind, you might have to sacrifice some actions in return for making progress. Always think about the bigger picture! One thing that can help you avoid this pitfall is to keep your deadlines in mind whenever you set milestones for a project or task.

    Deadlines are a commitment to yourself, and every bit of time is precious. So if an activity you’re focusing on is taking time away from progress towards your goal, it may be time to let go of it for now. You can always decide to pick it up again later.

    Then there’s the other extreme of delegation. And that’s when you start delegating everything you dislike doing to external sources.Sometimes it’s tempting to abuse delegation and get carried away outsourcing everything on your “don’t like doing” list.

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    Some people are too picky on what they’re going to do. But sometimes, if you don’t like doing so but you’re the only one who can do it, you still need to finish the job. At the end of the day, it does take your own hard work and effort to achieve the success you want.

    So if you find that you’re constantly running into this problem of over delegating, then it may be time to re-evaluate your motivation, or reason for doing whatever it is that you’re doing.

    Ask yourself, “Is this task contributing towards a meaningful objective that I want to achieve?” and “what kind of progress do I make each time I carry out the task myself?” If the task is both meaningful and creates progress, then the next step is to ask yourself questions that can help you create actions.

    What obstacles are causing you to avoid this task? Is it because of low confidence in your ability? Do you think someone else can do a better job? Is it your level of focus? Or is there an alternative action you can take that can produce the same results?

    Take Action Now

    Take a look at your current tasks or to-do’s that you have planned this week. Which tasks are possible candidates that fall under the Delegation Triangle? Are there any that fall under the pitfalls mentioned above? Which tasks can you immediately identify that should be delegated out right now?

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    I hope this exercise helps declutter your tasks and responsibilities a little and allows you to see how much more time you can be saving for more important things. But, this is not the end of delegation. After you’ve sorted out the tasks that can be delegated, the next step is to determine who it should be delegated to. Besides people like your co workers, or spouse/family members, did you know that there is a whole delegating industry out there?

    If you’re keen to learn more about this delegating industry, and find out how you can decide who’s the best fit to do your delegated tasks, subscribe to our newsletter today. We will help you discover many more skills that will boost your productivity by leaps and bounds!

    Featured photo credit: rawpixel via unsplash.com

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