Starting small, pinching pennies
At TWiCE we know that many people have trouble setting money aside to save so they can get ahead. There is much advice available, ranging from strict belt tightening, bargain hunting and using price comparison sites, to name just a few. Everyone has different priorities, and finding the right strategy to help you save can often be tricky and frustrating. TWiCE thinks it’s perfectly possible to start as small as you can and work your way up. That’s why we think that it’s worth giving the 1p savings challenge a go.
You might ask, what, so am I just putting a penny in a jar a day? That doesn’t seem like much. The thing is you start with a penny and work your way up over the course of a year. On day 1 you put a penny away, it can be in a jar, it can be in a savings account, whatever you like. Big deal, what’s a penny going to get you, right? Well on day 2 you put in 2p, and then day 3, 3p, and so on.
By the time you start putting away £1 a day you’ll have £50 put away in savings already! If you keeping adding on 1p a day for the same amount of time it took you to get to £50, you’ll have racked up £201 in savings. Seems like a fair bit from starting out at 1p a day, doesn’t it?
If you set yourself the goal of doing this for an entire year, you’ll be putting away £28.92 in your final week of the year, and end up with a grand total of £667.95 in savings! If you can end the year looking at your finances and being up by more than £650, it’s been a pretty good year.
While this savings plan gives you a steady progression, TWiCE understands that everybody’s spending as they go through the year ebbs and flows. Some days, weeks, and months might be more expensive than others, which can sometimes complicate how you can save effectively.
One that jumps to mind is Christmas, which also lines up with the final stages of your 1p savings plan. Some people might find it challenging to put that money aside during this period, which is understandable. That’s why you could try doing this challenge in reverse. You start on day 1 by putting away £3.65, and then working your way down by a penny a day. While it does mean starting out a little tougher on yourself, you can give yourself a little more financial breathing room when you get towards the Christmas period.
This is just one little saving strategy that can go a little way towards developing some good savings habits. If you’re interested in finding out other ways you can save more and increase margin in your pay cheque each month, it might be worth checking us out..
- Tom L
Disclaimer: The above information does not replace financial advice. Please ensure you seek independent financial advice before making any decisions regarding your finances. We also recommend that you carry out your own research to ensure that this is right for your own unique circumstances. Please note that we sometimes link to other websites but we cannot be held responsible for their content.