How The 100 Envelope Challenge Could Help You Save In 2023 – 100 Envelope Money Challenge Ultimate Guide, Variations, Trackers, & More
The 100 envelope money saving challenge is a popular method for building savings and reaching financial goals. This challenge is designed to help you save a significant amount of money over 100 days.
You can reach your financial goals by setting aside a small amount of money each day and watching your savings grow over time.
In this post, we will dive into the 100 envelope money challenge, providing an ultimate guide covering everything you need to know to make the challenging work for you.
We will discuss variations of the challenge, budgeting strategies, free printable trackers, and more.
Whether you are looking to improve your financial habits, save for a specific goal, or build an emergency fund, this guide will provide you with the information and tools you need to make the 100 envelope challenge a success and reach your goal of saving well over £5000 in 2023.
What is the 100 Envelope Challenge?
The 100-envelope challenge is a personal finance challenge where you put money into 100 envelopes, and each envelope is labelled with a different category of expenses. For example, you may have an envelope for groceries, another for entertainment, and another for savings.
The challenge is to only spend the money in each envelope on that particular category of expenses. It means that if you want to go out to eat, you can only spend the money from the envelope labelled “entertainment.”
The challenge’s goal is to save money by being mindful of your spending. This challenge can help you build good financial habits that will last a lifetime.
How Does the 100 Envelope Challenge Work?
The 100-envelope challenge works by forcing you to be mindful of your spending. This challenge can help you save money by making you more aware of your spending habits.
For example, if you typically spend $100 per week on groceries, you would put $100 in the envelope labelled “groceries.” Then, you would only be able to spend that money on groceries for the week.
If you want to eat, you must use the money from the envelope labelled “entertainment.” This would make you more aware of your spending and may help you save money.
Variations of the 100-Day Money Challenge
People do the 100-Day Money Challenge in a few different ways. The most popular variation seems to be where you save £1 on the first day, £2 on the second day, and so on until you reach £100 on day 100. So your total savings for the challenge would be £5050.
Other variations include starting with £100 on day one and saving £1 less each day or starting with 50p on day one and doubling your savings each day.
You could also do a hybrid of the two, starting with £10 on day one and then increasing your savings by £1 each day until you reach £100 on day 100.
Variation #1: Save £1 on Day 1, £2 on Day 2, and so On
The most popular variation of the 100-day money challenge is to save £1 on day one, £2 on day two, and so on until you reach £100 on day 100. It means that your total savings for the challenge would be £5050.
To make this challenge a bit more challenging, some people like to start with £0.01 on day one and then double their savings each day. So, on day two, they would save £0.02; on day three, they would save £0.04, and so on.
Variation #2: Start with £100 on Day 1, and Save £1 Less Each Day
Another popular variation of the 100-day money challenge is to start with £100 on day one and then save £1 less each day. So, on day two you would save £99, on day three you would save £98, and so on. This means that your total savings for the challenge would be £4950.
Some people like to make this variation more challenging by starting with £1000 on day one and saving £10 less each day. So, on day two you would save £990, on day three you would save £980, and so on. It means that your total savings for the challenge would be £49,950.
Variation #3: Start with 50p on Day 1, and Double Your Savings Each Day
Another variation of the 100-day money challenge is to start with 50p on day one and double your savings each day. So, on day two, you would save £1; on day three, you would save £2, and so on. This means that your total savings for the challenge would be £6,550.
You can make it a bit more challenging by starting with £5 on day one and doubling your savings each day. So, on day two you would save £10, on day three you would save £20, and so on. It means that your total savings for the challenge would be £655,000.
Variation #4: A Hybrid of the Two
Some people like to do a hybrid of the two, starting with £10 on day one, then increasing their savings by £1 each day until they reach £100 on day 100. It means that your total savings for the challenge would be £5500.
You could also start with £100 on day one and decrease your savings by £1 each day until you reach £1 on day 100. It means that your savings for the challenge would be the same as Variation #1, at £5050.
How to Do the 100 Day Envelope Challenge Digitally
If you want to use less than 100 physical envelopes, there’s a digital way to do the challenge. You can set up budgeting software like Mint or YNAB (You Need a Budget) with virtual “envelopes.”
Then, as you’re paid each month, you divide your money into these different categories. You can only spend more in that area in the next month when the money in one category is gone.
There are a few different ways to set up your envelopes digitally. You can use an app like Good budget, which offers digital and physical envelope options. You could also use a simple Excel spreadsheet or paper and pencil.
How to Do the 100-Day Envelope Challenge with Cash
If you want to use cash for your challenge, there are several different ways to set it up. One way is to get 100 envelopes and label them with your different categories.
Then, as you’re paid each month, you put the appropriate amount of cash into each envelope. You can only spend more in that category in the next month when the cash in one envelope is gone.
You could also use a variation of the Envelope System, where you divide your money into different categories and put it into different bank accounts.
Then, when you want to spend money in a certain category, you transfer it from that account into your checking account. This can help you avoid fees if you overspend in one category and need to dip into another.
No matter which method you choose, the key is to be disciplined about sticking to your budget. If you’re consistently overspending in one area, you may need to adjust your budget or find a different way to save.
Free Envelope Challenge with Free Printable PDF
You can download the free printable if you want to try the 100-envelope challenge but want to make something other than your envelopes or trackers. Free Envelope Challenge With Printable PDF includes 100 numbered envelopes, as well as a tracker to help you keep track of your progress.
To get started, simply decide how much you want to save each month in each category, and put that money into an envelope (or create a digital tracker with the same categories).
Then, when you need to spend money in that category, use the money from the envelope. Once the money is gone, you’re done spending for that month.
If you’re looking for a way to save even more money, you can try variations of the envelope challenge, like the 52-week or saving sprints challenge. You can also use a budgeting app or online tool to create your digital tracker.
Who Should Do the 100 Envelope Saving Challenge?
The 100-envelope challenge is perfect for those who want to save money for a specific goal, whether it’s a rainy day fund, a holiday, a new car, or even a house deposit.
It’s also great for people who need help saving money as you are physically putting money away each month, making it harder to spend.
1. People with zero high-interest (10%+ APR) debt
The 100 envelope challenge is perfect for people with high-interest debt as it will help you pay off your debt quicker.
Paying off debt should be your number one priority as it’s costing you money each month in interest payments, so by doing the 100 envelope challenge, you can put that money towards your debt instead and save yourself much money in the long run.
2. People who want to save money for a specific goal
The 100 envelope challenge is perfect for people who want to save money for a specific goal as it helps you to focus your savings.
It can be difficult to save money when you don’t have a specific goal in mind, but by having a specific goal in mind, it will be easier to stay motivated and focused on your savings.
3. People who find it difficult to save money
The 100 envelope challenge is perfect for people who find it difficult to save money as it forces you to save each month.
It can be easy to dip into your savings when you don’t have a specific goal in mind, but by doing the 100-envelope challenge, you are physically putting money away each month, making spending harder.
Pros and Cons of the 100 Envelope Savings Challenge
You must consider several things before deciding if the 100-envelope challenge is right for you. On the one hand, it could be a great way to jumpstart your savings and get on track to reach your financial goals.
Here are some pros and cons of the 100-envelope challenge to help you decide if it’s right for you.
#1. You can save a significant amount of money.
If you stick to the challenge, you could save over £5000 a year. It could be a great way to jumpstart your savings and get on track to reach your financial goals.
#2. It’s a simple way to save money.
The challenge is easy to follow and doesn’t require a lot of planning or effort. It makes it a great option for people who want to save money but need more time or energy to devote to budgeting.
#3. It’s flexible.
You can tailor the challenge to your circumstances and goals. For example, you can choose how much money you want to save each month and adjust the envelope categories to fit your spending habits.
#4. You can use it with other savings strategies.
The 100-envelope challenge can be used in conjunction with other savings strategies, such as automating your savings or using cash only. This can help you boost your savings even more and reach your financial goals faster.
#1. It may not be the most effective use of your money.
If you have high-interest debt, you should use your money to repay it instead of saving it. This is because you’ll save more in interest charges by paying off your debt than you would earn in interest on your savings.
#2. It can be difficult to stick to.
It can be tempting to dip into your savings for unexpected expenses or wants. If you’re not disciplined, you may find it hard to stick to the challenge and reach your savings goals.
#3. You may need to adjust your budget.
If you want to complete the challenge, you may need to make some changes to your budget. For example, you may need to cut back on your spending in other areas to make room for your savings.
Ways to Increase Savings Potential
There are many ways to save money, but some methods are more effective than others. The 100 envelope challenge is a great way to jump-start your savings and make a dent in your long-term financial goals.
1. Automate your savings.
One of the best ways to save money is to automate your savings. It means setting up a direct deposit from your paycheck into your savings account. This way, you’ll never see the money and will be less tempted to spend it.
2. Use cash only.
Another great way to save money is to use cash only. It means withdrawing a set amount of cash each week or month and only spending it. It can help you stay within your budget and avoid overspending.
3. Invest in a high-yield savings account.
You can invest in a high-yield savings account if you want to earn more on your savings. These accounts typically offer higher interest rates than traditional savings accounts, which means you’ll earn more on your savings.
4. Review your expenses.
If you want to save more money, you must be aware of your spending habits. Take a close look at your expenses and see where you can cut back. This can help you free up more money to save each month.
5. Set savings goals.
If you have specific savings goals, staying motivated and on track can be easier. Make sure your goals are realistic and achievable, and take steps to reach them.
The 100 envelope challenge can be a great way to save money, but it’s only right for some. Consider your goals and circumstances before you decide if the challenge is right for you.
If you’re looking for more ways to save money, plenty of other options are available. Talk to a financial advisor to get started on your savings journey today.
Envelope Challenge Trackers
Here are a few key ways to make the 100 envelope challenge work for you. One way is to use what’s called the “envelope method.” This involves putting your income into different envelopes labelled with different spending categories.
You take the money out of that category’s envelope when you want to buy something. Once the money in an envelope is gone, you can only spend more in that category after the next time you’re paid.
Some people prefer to use a variation of the envelope method to track their spending using a budgeting app or spreadsheet. This can be helpful if you find it difficult to stay disciplined with cash.
With this method, you’ll still allocate a certain amount of money to each category, but you’ll track it electronically instead of using physical envelopes.
Other Money Saving Challenges
There are other savings challenges you may want to try if the 100-envelope challenge seems like something other than the right fit for you. Here are a few other options:
The 52-Week Money Challenge
The 52-week money challenge is a great way to start saving money. The challenge is simple: save an extra £1 the first week, £2 the second week, and so on, until you’re saving £52 in the final week. By the end of the year, you’ll have saved £1,378!
There are a few different ways you can do this challenge. You can either put the money into a savings account each week or put it into an envelope labelled with the week’s number. Then, at the end of the year, you’ll have a nice lump sum to use however you want!
The 10% Savings Challenge
This savings challenge is a great way to boost your savings account quickly. The challenge is to save 10% of your income each month. So, if you earn £1,000 a month, you’ll save £100. It may seem like a lot, but it adds up quickly!
At the end of 12 months, you’ll have saved £1,200 – not even including any interest you may have earned on your savings!
The 30-Day Money-Saving Challenge
This challenge is perfect for those who want to save money but don’t want to commit to a long-term savings plan. The challenge is simple: save £1 on the first day, £2 on the second day, and so on, until you reach day 30. At the end of the month, you’ll have saved £465!
The benefits of the 100-envelope challenge
Let’s explore how the challenge could help you save over £5000 in 2022, including variations of the challenge, tracking your progress, and more.
The 100-envelope challenge is a simple way to start saving money. The basic premise is that you put 100 envelopes labelled with different amounts of money into a box, and whenever you have spare cash, you put it into one of the envelopes. At the end of the year, you count up all the money you’ve saved.
Benefit #1: You’ll have a visual representation of your progress
One of the great things about the 100 envelope challenge is that it’s very easy to track your progress. You can see exactly how much money you’ve saved, and where you need to improve.
Benefit #2: It’s a great way to save for a specific goal
If you’re saving for a specific goal, the 100-envelope challenge can be a great way to stay on track. You can label each envelope with a different goal, and then put the money you saved towards that goal.
Benefit #3: It’s a flexible way to save
The 100-envelope challenge is a flexible way to save. You can start with any amount of money and save as much or as little as you want.
Benefit #4: It’s a great way to teach kids about saving money
If you have kids, the 100 envelope challenge is a great way to teach them about saving money. They can see how much they need to save, and they can track their progress.
How to track your progress with the 100 envelope Money challenge
Assuming you’re using the standard 100-envelope challenge, you’ll need to track your progress each time you deposit money into your savings account. It can help you stay motivated and accountable as you work towards your goal.
Here are a few ways you can do this:
1. Keep a physical tracker. It could be a simple notebook where you write down each time you deposit money into your savings account. Alternatively, you could create a more creative tracker, like a bullet journal spread or vision board.
2. Use a digital tracker. If you prefer to track your progress digitally, there are a few different ways to do this. Create a spreadsheet with your saving goals and deposit dates, or use a money-tracking app like Mint or YNAB.
3. Join a group challenge. If you need help staying motivated, consider joining a group challenge like the one offered by the Financial Times. This could help you stay on track and reach your goal.
With the 100-envelope challenge, you can save over £5000 in just one year. By following the tips above, you can ensure that you stay on track and reach your goal. With a little bit of effort, you can achieve financial freedom in 2023.
Tips for sticking to the 100-envelope challenge
Generally, it is difficult to stick to the 100-envelope challenge, but a couple of ways may help you.
Set up an account with a budgeting app: This will make it much easier to track your spending and see where you can cut back to save more money.
Create a savings goal: Having a specific goal in mind will help you to stay motivated and on track.
Start small: If you need help to stick to the challenge, start with a smaller number of envelopes and gradually increase this over time.
Tell your friends and family about your challenge: This will help keep you accountable and may inspire them to take on the challenge themselves!
The 100 envelope challenge is a great way to save money and help you reach your financial goals. You’ll be on your way to success by following the tips above.
Why do the 100 envelope challenge?
The 100 envelope money saving challenge is designed to help people save significantly over 100 days. The challenge is based on setting aside a small amount of money each day and watching your savings grow over time. The goal is to reach a specific savings target by the end of the challenge.
There are several reasons why someone might choose to do the 100-envelope challenge:
To build an emergency fund: Having a savings cushion to fall back on in case of unexpected expenses is important for financial stability.
To save for a specific goal: The challenge can be used to save for a down payment on a house, a vacation, or any other specific goal.
To improve financial habits: The challenge can help individuals develop better money management habits and increase their financial literacy.
To increase savings: The challenge can be an effective way to increase savings and make progress toward financial goals.
Additionally, the challenge is a way to visualize the power of small, consistent savings over time, and it can be a fun and motivating way to save money.
It’s important to remember that the 100 envelope challenge can be adjusted to suit your needs and financial situation. For example, you can save more or less than the suggested amount each day or do the challenge for a longer or shorter period.
Is the 100 Day Money Challenge Hard?
The 100-day money challenge can be challenging for some people, depending on their current financial situation and ability to stick to a savings plan.
Consistently saving money each day for 100 days requires discipline and determination. It can be hard to stick to a budget and resist the temptation to spend money on non-essential items.
However, it can also be a very rewarding experience. It can help you develop better money management habits, increase your savings, and progress toward your financial goals.
To make the challenge less hard, it is helpful to have a clear plan and budget in place, set realistic savings goals, and find ways to make saving money fun and motivating.
You can also research budgeting strategies, money management, and savings tips, which can give you the knowledge and skills you need to complete the challenge successfully.
It’s important to remember that the challenge is not about being perfect but about making progress and learning from your mistakes.
And if you find it hard to save a specific amount every day, you can adjust the challenge to suit your needs. For example, you can save every other day or save a different amount each day.
Is there a 100 envelope challenge app?
Many people on TikTok have completed the envelope money saving challenge, but we are not aware of any specific app called the “100 Envelope Challenge app”; however, there are budgeting apps that allow you to create virtual “envelopes” or categories for your spending.
These apps can help you track your spending and savings like the envelope money-saving challenge. Some popular budgeting apps that you may find helpful include:
- You Need a Budget (YNAB)
These apps allow you to create different budget categories, set a budget for each category, track your spending, and monitor your progress toward your saving goals.
Some of them can sync your bank account and credit card transactions, which can help you keep your budget up to date.
How to Do the 100 Envelope Challenge Digitally
Free printable 100 envelope challenge chart trackers
A free printable 100-envelope challenge chart tracker is a tool that can help you keep track of your progress during the 100-envelope money-saving challenge. It is a document you can print out and use to mark your daily savings and monitor your progress toward your final savings goal.
Typically, the chart will include the following:
- 100 boxes or spaces, one for each day of the challenge.
- A place for you to write the amount you save each day.
- A running total of your savings updates as you mark your progress.
- A place to write your final savings goal so you can see how close you reach it.
- The chart can be used with a budget plan, which outlines how much you plan to save each day and how you will save it.
These trackers can be found online for free and are usually designed in a simple and easy-to-read format. Some include colorful illustrations and motivational phrases to keep you motivated throughout the challenge.
Using a printable tracker can be a helpful way to stay organized and motivated during the challenge, as it allows you to see your progress and adjust your budget as needed physically.
How To Do Envelope Money Saving Challenge Without Envelopes
One way to do the envelope money-saving challenge without using physical envelopes is to use a digital budgeting tool or app.
Many apps, such as Mint or PocketGuard, allow you to create virtual “envelopes” for different spending categories, such as groceries or entertainment.
You can set a budget for each category and track your monthly spending. Another option is to use a spreadsheet or a piece of paper to track your spending and budget for each category.
The key is to have a clear system for separating your money into different categories and tracking your spending within each category.
The 100 envelope money saving challenge is a powerful tool for building savings and reaching financial goals. By setting aside a small amount of money each day for 100 days, you can save a significant amount over time.
By using a budget plan and a printable tracker, you can stay organized and motivated throughout the challenge.
The challenge can help you develop better money management habits, increase your financial literacy, and make progress toward your financial goals.
With the right plan and discipline, it’s possible to save over £5000 in 2023 with the 100 envelope challenge. It’s important to remember that the challenge is not about being perfect but about making progress and learning from your mistakes.
It’s a long-term savings plan that requires discipline and determination, but the results can be very rewarding. And, if you find it hard to save a specific amount every day, you can adjust the challenge to suit your needs.