How To Save Money By Doing The 52-Week Money Challenge | The Investing Engineer PH

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How To Save Money By Doing The 52-Week Money Challenge

One day, I came across TGFI’s facebook video post about the 52-week money challenge. This reminded me of a similar saving technique I read in a blog post by Kuripot Pinay almost a year ago. I didn’t pay attention to this money challenge because I’ve been doing my own 10-20-70 money-saving strategy ever since I started this blog and I think that’s already enough.

Pera sa Masa Ep1: Mag-impok Para sa Ekonomiya (52 Week Challenge)Eto na mga tol ang show na magpapabago ng pananaw mo sa iyong yaman! Panoorin ang Pera Sa Masa Ep1 upang malaman mo kung paano mapapalago ang iyong kwarta ngayong 2016!

Para sa mga gustong humingi ng template ng 52 Week Money Challenge na ito, mag click ka lang dito at makukuha mo agad ang lahat denomination na iyong nais gamitin sa Ipon Challenge na ito

Click ka lang dito mga tol: https://www.wecad.co/52-week-money-challenge/

Posted by The Global Filipino Investors on Tuesday, January 5, 2016

 

Two weeks ago, I shared the video to my girlfriend because I thought that maybe she could start this by herself. After she watched the video, she convinced me to do this together.

Doing an additional money-saving challenge in my life wouldn’t put stress in my daily budget because I’ve already paid all my outstanding loans in full. I’m debt free just last year. Also, I only live a frugal life; spending only what is needed. So yes, I can do this.

So last Sunday we bought ourselves a nice cheap thrift box (not a box actually, it is cylindrical in shape) in National Bookstore.

Challenge Accepted!

To start, we talked about the plans on how to save when we got home. We started the challenge on five pesos. Five pesos for me and five pesos for her. That would be ten pesos on the first week and an additional ten peso increment in the coming weeks that would be deposited straight on our thrift box.

I printed and pasted the 52-week money challenge plan in it.

But why five pesos? The reason is that I’m already saving 10% of my salary in my emergency fund account and 20%-30% to the stock market. My girlfriend on the other hand, will start investing a portion of her salary at PSSLAI.

We thought that starting at five peso increments can be manageable within the year. The challenge proves to be difficult when you’re already halfway on the calendar if you started on a high amount.

If we managed to make it by the end of the year, then maybe we can increase it to ten pesos per person.

The 52-Week Money Challenge In A Nutshell

 

In a nutshell, the 52-week money challenge is done by saving money by setting a fixed increment that is carried over as the week progresses. If you decide to start with just 5.00 pesos for example, on the 1st week you save 5.00 pesos. On the 2nd week, 10.00 pesos. On the third week, 15.00 pesos and so on.

  • 1st week (Jan. 1 – 7): Php 5.00
  • 2nd week (Jan. 8 – 14): Php 10.00
  • 3rd week (Jan. 15 – 21): Php 15.00
  • 4th week (Jan. 22 – 28): Php 20.00 …. (until the last week of the year)

If we try to do the math, we can save Php 6,890.00 in a year for just starting at 5.00 pesos on the first week. In perspective, that’s Php 132.50 per week if you’ll just choose to save this fixed amount every week and not follow the challenge’s mechanics.

But where’s the fun in that? Saving money is quite hard because let’s admit it, we are spenders.

We spend money because we want to feel instant gratification. The feeling of contentment by having the latest cellphone, tablet, shoes or whatever material things that we instantly want but not necessarily need prevents us from doing the right thing; saving money.

Most of us just want to spend money and save whatever is left. It’s this mentality that drives us Filipinos to be poor. Wealthy people do the other way around. They SAVE MONEY FIRST and spend what’s left.

Doing this challenge will give you the discipline to save first and spend after.

If you start doing this challenge, it will give you the proper mindset and motivation to save without you noticing it. That’s what I like about this saving technique. It’s a CHALLENGE.

As the weeks pass, it becomes increasingly harder to save. Since it’s a challenge, we are normally programmed to do anything that will enable us to pass the challenge. There’s a good psychology at work right here and that’s what I like about it.

We are now on the third week and we have now an accumulated Php 60.00 on our thrift box. We are just excited to do this because it gives us a reason to value more the money we earn.

We don’t have plans on stopping this saving challenge. The money that we will accumulate in this challenge will definitely be used to make more money. Maybe we could start to fund a business, or maybe we can use this to open up a UITF or a mutual fund account. Or invest it in other forms of investment vehicles.

Final Thoughts

For the people out there who find it a hard time to save money, I suggest that you do this challenge this year.

Since January is just on the third week, it’s never too late to start yet. One of the foundations of wealth building is the most basic thing that people have a hard time doing; SAVING MONEY. Do this now for your financial future’s sake.

Saving money can be quite boring but if you put a challenge on it, it becomes exciting. Your mindset about money will change slowly. It will give you the proper discipline to push yourself and live frugally.

If you want to teach yourself about saving money, then put yourself into the test.

Challenge yourself.

Happy saving!

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