After having paid off $45,000 in debt and saved an additional $50,000 for a home down payment, you might assume I have mastered the art of finance. However, the journey was fraught with hardship and challenges that cannot be summed up in a mere sentence.
From time to time, my spouse and I need to streamline our financial habits to hit certain financial targets. Even though we enjoy a decent income and manage to save anywhere from 20-30% of our take-home pay every month, we still strive to increase our earnings, boost our savings, and minimize our expenses.
Whenever we find ourselves in a financial bind, I seek inspiration from other budget-conscious bloggers. This has led me to discover the trend of taking on financial challenges, where bloggers commit to a specific saving or spending task over a predetermined period.
It’s akin to dieting, but for your finances.
If you’re seeking a boost to rejuvenate your finances, here are five financial challenges worth considering:
1. THE NO-SPEND CHALLENGE: This intense challenge requires abstaining from all non-essential purchases for a month. It’s a stringent approach that can provide a much-needed reboot to your financial habits.
2. THE NO-DINING-OUT CHALLENGE: This is a great starting point for those seeking to improve their finances without the drastic measures of the No-Spend Challenge. It involves preparing all meals at home, leading to significant savings.
3. THE 52-WEEK SAVINGS CHALLENGE: This challenge involves saving incrementally greater amounts each week for a year, helping you build a robust emergency fund or a vacation kitty.
4. THE NO NEW CLOTHES CHALLENGE: This involves abstaining from buying new clothes for a year, significantly altering your perspective towards shopping and leading to considerable savings.
All these challenges serve to reboot your finances and set you on the path of financial wellness. If these don’t appeal to you, feel free to design your own challenge. The key is to establish boundaries, select a duration, and then stick to it!
Which money-saving challenges have you found most effective? We’d love to know your thoughts.
