The 52 Week Money Challenge and 52 Week Money Challenge Version 2 concocted by a contributor in Lifehacker and improved upon by Kuripot Pinay has been making waves in social media and mainstream media. With a lot of coverage going on about this very creative, if not alluring, way to save 5 digits a year, it’s no wonder that a lot of people are loving it and hating it at the same time.
Can you imagine saving up to 70,000PHP by the end of year? Most people would probably think it’s ludicrous, but it works and I am about to give you three reasons why:
1.) First, the 52 Week Money Challenge and 52 Week Money Challenge Version 2 works on an incremental system. The amount given by Kuripot Pinay started at 50PHP and incremented with the same value, so you’d have 50PHP by the start and next week you’d save 100 and so on. The core concept here is the increment. Every time you save at an incremental value, you are more likely to double your savings than by saving the same amount every week. If you save 10PHP a week and increment by 10PHP every week, you’d still have more than saving 10PHP a week for a year. It’s that simple. The more money you have to spare, the bigger your increment, and the bigger your increment, the bigger the savings.
2.) There’s no pressure. With the incremental system, you have full control of how much you can shell out for your savings. Most people have shelled out 3000PHP at the start because they are able to and it would go on from there. They don’t have to save 3000PHP a week, but they are able to realize how much they can save without going for broke. This makes it easy for students and young professionals to set aside money from their allowance or salaries.
3.) It teaches you the value of saving. It’s as easy as that. The 52 week money challenge works because it encourages, nay challenge, you to save. Psychologically, people cannot back out of a challenge because failure will result in a blow to the self-esteem, even if it means it’s difficult. But the 52 Week Money Challenge and 52 Week Money Challenge Version 2 is not difficult at all. Again, I reiterate that you have full control of your increments. Most people cannot save 2000php a week once they reach October, so you have the option of saving the maximum amount you’re able to part with until you reach the end of the year. If I am able to progress with my 50PHP increment until I reach the 2000PHP mark, I know that I am able to save 2000PHP a week. Assuming that between October and December, there are 12 weeks and 2000 x 12 weeks is 24,000PHP so there’s still that amount waiting by the end of the year.
The 52 Week Money Challenge and 52 Week Money Challenge Version 2 can help you buy a new smartphone or help you get started with passive income like stocks, and it’s a system that works. If you save 10PHP a week for the 40 weeks (March to December), you’d have PHP400 in your savings. This is basic, but if you have an increment, you’d double or triple that 400PHP by the end of the year.
(Written by Justin Philippe Haguisan)
P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 8 already! Did you deposit the next amount yet?
P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.