By Melissa Tosetti
In January, I wrote an article asking if “Save Money” was on your list of New Year’s Resolutions. For most followers of The Savvy Life – it was.
In our experience of working with over 400 clients, those who have the most success when it comes to saving money have done so by setting and achieving incremental goals.
One of the reasons our money-saving resolutions fail is because we try to do too much at once. We go from not saving anything at all to trying to save 10% or more of our income. Then, money feels too tight, we start dipping into our savings, get frustrated and stop altogether, claiming to the world that we’re just not “good savers”.
It’s not about being a “good saver”. It’s just a matter of trying to do too much at once.
With this in mind, we created The 5% Challenge.
The goal of the challenge is to help you save 5% of your take-home pay by this time next year and to achieve this goal in baby steps.
It’s not too late to join the challenge. You can begin right now by calculating what 1% of your paycheck is and set up an automatic transfer of that amount to a savings account. To give you an example, if your take-home pay is $2,000 per paycheck, then 1% is just $20.
The next step of the challenge happens in May when you’ll increase the amount going into savings by 1/2%. If your take-home pay is $2,000, 1/2% is just $10. The total amount being saved each paycheck is $30.
Every other month you’ll increase your savings by an additional 1/2% or 1% until next March where you’ll increase your savings contribution by a full 1% allowing you to achieve your 5% goal!
The 5% Challenge
Based on a $2,000 per Month Salary
To join the challenge is simple.
- Click here to send an email letting me know you’re in: 5% Challenge.
- Set up an automatic transfer of 1% of your paycheck to your savings account of choice.
- Every other month, you’ll receive an email letting you know it’s time to increase your savings by either 1 or ½%.
That’s it! Easy to start and easy to maintain.
Get started now!