From saving for a house deposit or stowing away cash for a holiday, there’s no shortage of reasons why a person may want to set aside some of their income. But, with bills to pay for and the cost of everyday living to consider, saving money can seem like something of a challenge.
In a bid to help savers end up with an impressive lump sum at the end of the year, the 365 day Money Saving Challenge is an option.
With this savings move, the person is required to set aside a little bit of cash on each day of the week.
On a Monday, this amounts to just £1, increasing to £2 on a Tuesday.
The amount of money which needs to be saved increases by £1 as the days of the week go on, meaning by Saturday, £6 should be set aside.
Saving money is an aim for whole host of people
Finally, on Sunday, a sum of £7 needs to be saved.
Fast forward to Monday, and the saving amount resets, meaning £1 again needs to be saved on this day of the week.
Should the saver stick to the plan, this means they’ll save £28 a week.
The year 2020 is a leap year, meaning there’s an extra day to save money on.
Crunching the numbers, this means that savers will end up with a little more than those who tried out the challenge last year would have – with this figure said to have totalled £1,463.
Another savings challenge which may appeal to some people is the 1p savings challenge.
The practice follows a similar format to the 365 day Money Saving Challenge, in that the amount a person sets aside each day rises each day.
However, the 1p savings challenge begins with just one penny, and increases by 1p each day.
Saving money: £1 should be saved on a Monday, rising by £1 each day to £7 on Sundays
This means that on the final day of the year, £3.65 – or £3.66 in the event of a leap year – should be saved.
If all goes to plan, the saver could amass more than £667 within the year.
It’s also possible to do the 1p savings challenge in reverse – meaning less money needs to be saved as the days go on.
As a result, on the final day of the year, just 1p would need to be added to the savings pot.
The savings move comes at a worrying time for some, with research finding that more than half of the UK adult population (almost 27million) will head into 2020 in debt.
Of these, almost five million owe more than £10,000 in loans and credit, according to a poll of 2,018 people aged 16-64 conducted by money.co.uk.
The survey found that, not including mortgages, almost two thirds (63 percent) will go into the New Year with some form of personal debt.
This includes money owed on credit cards, personal loans, car loans, bank overdrafts, and payday loans.