4 Weird Ways to Save

Looking to build your emergency fund (or vacation fund) in 2022? Savings accounts and spreadsheets are great and all, but sometimes we need a little extra incentive to put away that cash for a rainy (or sunny) day.

Given that the median household savings balance in the United States is just $5,300, it might help to try something new, and slightly less conventional, when it comes to saving and budgeting. So here are four unique ideas and challenges to attempt this year. 

The 52-Week Money Challenge

Want to put away an extra $1,378 in 2022? Try the 52-Week Money Challenge. The concept is simple: You save $1 the first week, $2 the second week, $3 the third week and so on. By the end of 52 weeks, you’ve saved $1,378.

To avoid the temptation of tapping into your savings to buy groceries or order takeout, keep the funds in a separate account—preferably a high yield savings account. You can manually transfer the amount from checking to savings each week or see if your bank will automate transfers.

The No-Spend Challenge

A no-spend challenge can help you avoid impulse purchases and save some serious cash in the process. To get started, commit to a specific timeframe, such as a week or a month. Then, only spend money on necessities during that timeframe, such as rent, gas, groceries and other bills—no dining out, shopping or nonessentials.

You can even plan to do one no-spend week every month and use that week as an opportunity to get creative (such as using up the food in your pantry for dinners or repurposing old clothes into cool new outfits), learn new things (chess, or an instrument?) or partake in free activities that are also great for your mental health (taking daily walks, doing puzzles or diving into new books).

To ensure you don’t splurge at the end of the challenge, decide where the money you save will go before you even get started—and don’t touch it. Transfer it to your savings account, invest it in a brokerage account or use it to pay off debts.

The $1 Bill Save Challenge

Here’s how it works: Every time you get a one-dollar bill as change, don’t spend it. Instead, put it in a savings envelope and deposit the total into your savings account at the end of the month. (Not using cash? Round up your totals instead and keep track of that money in the Notes app on your phone. At the end of the month, add up those little amounts and transfer the total to your savings.)

If you want to take this challenge to the next level, use the same method with $5 bills instead. You’ll be surprised at just how much money you can save. 

The 24-Hour Rule

Are you tempted by social media ads and the promotional emails that fill your inbox? Prone to impulse purchases that you wind up never using? The 24-hour rule can help you stop spending money on things you don’t need.

The next time you see something you want, give yourself 24 hours to think about it instead of buying it right away. Chances are, you’ll come to your senses and realize you don’t really need those slippers or that acupuncture mat.  

Can’t decide which saving method to use? Here’s the good news: There’s no bad option. So pick one (or more) and start working toward your goals.

 

Janet Berry-Johnson is a certified financial planner and a freelance writer who enjoys making complicated topics, like accounting and taxes, easy to understand. 

Illustration: Pui Yan Fong

 

LEARN MORE: Saving Strategies for The Real World