According to BankRate, the 52-week or year-long challenge to provide funds is a realistic example for individuals who follow financial plans to achieve their goals. Goal, steps, as well as reward. The way it works is to save one dollar in the first week, for example, to rise to two dollars in the second week .. And so until we reach the 52nd week.
This challenge can contribute to the creation of an emergency fund, debt repayment, or savings for a holiday. The most important thing to do before the challenge starts is to know where the money will be placed.
The organization advised to subscribe to an account that provides the highest interest rate possible, pointing out that better rates can also be found online, and there is another benefit to the use of an account online, is that the savings will be separate from regular bank accounts, making it difficult to spend «by mistake ».
different ways
According to Bank Rhett, the classic way to start this challenge is to start saving one dollar in the first week, ending with saving 52 dollars in the 52nd week, and this method can work significantly, but there are some problems related to it. Starting at the beginning of the year, an individual will have to save as much money as possible later, which is usually difficult for those with scheduled commitments.
The opposite way forward is the opposite, by saving $ 52 in the first week, falling down to $ 1 in the last week, while the selective way to challenge is to give the person complete control from which to choose the amount of money saved essentially. Based on his income and expenses, this definitely makes the challenge more interactive.
The monthly challenge is to do an automatic deposit of $ 115 per month for the Special Savings Account. If individuals have problems over-spending, they can try the envelope budget system, using a certain amount of money for most of the spending. Setting up automatic savings is the easiest and most effective way to save, and puts extra money out of sight.
Automatic saving means that there is a process of keeping at regular intervals, whether monthly, weekly or daily, and here should be emphasized that the goal is commitment, regardless of the size of the amount, the fact is that people save more successfully when setting a target and may start with a very small amount .
Healthy habits
In fact, individuals will start saving money only when developing sound financial habits, and their future needs become more important than their current needs.Monthly debt payments are the biggest obstacle to saving money.It is about changing behavior more than the numbers.Once income is released, it can be used to make progress. Towards the savings goals, money can be set aside on a regular basis to get a down payment for a home, or to retire, with the money in a single account, doubling regularly over years.
The budget is the cornerstone of a sound financial plan, as it can help to identify areas where spending is the most, as well as unforeseen emergencies, categorize expenditures into fixed, variable and discretionary categories, and once you know how much money is spent, the individual is in a better position to put His financial future is at the forefront.
• The challenge is based on three things: goal setting, steps, and reward.