The 1p challenge that saves you £667 a year

If you’re desperate to start saving, clear some debt or just set aside some money for a rainy day, nothing is easier than the 1p challenge.

You may have heard of it by now, but it’s fair to say many people also haven’t. So, before we kick off a new year – and one that is hopefully better – let’s break down the most simple saving challenge you could do for 2021.

What is the 1p/penny challenge?

Quite simply, it’s a saving challenge that sees you putting aside a penny to represent the day number. For example, starting on January 1st (day one) you would save 1p, on January 2nd (day two) you’d save 2p, on January 3rd (day three) you’d put aside 3p and so on.

This would continue through to day 365 – December 31st – where you would save £3.65 to represent the day number. It seems simple enough, and those who open their jar/bottle/tin after completing this 365-day saving will be happy to find they’ve saved £667.95 just by saving, and counting the pennies!

How to get started with the penny challenge

The first step is simple, download a free penny saving challenge template: 1p Saving Challenge 2021

Next, you’ll need to work out how you want to save the money.

1. Using a container

It’s the most straightforward option for stashing any loose change you have, although you’ll have a lot of loose change at the end of the year. The downside here is you’ll need to make sure you have the change, so you may find you’re withdrawing money and breaking it up to get smaller shrapnel for your saving challenge.

2. Automatic savings

If you have Monzo account, you may have already seen there’s the option to transfer payments with IFTTT automatically (If This Then That). As payments are made for you, you don’t have to worry about keeping track of days.

You can check out how Monzo lets you set it up here.

3. Manual bank transfer

It can be laborious but manually transferring the money to an account can help you avoid withdrawing and spending money to get smaller change for a jar. It does, however, mean you have to remember to transfer the money. If you choose this option, it might be worthwhile setting a daily alarm or reminder.

If you’re stashing your money away manually, you may find you have more to put away on some days than others. While most people do follow the order, it’s not essential – just make sure you mark off your tracker, so you don’t lose track. And, if you lose track of what day we’re on, you can check the day number here.

It’s that simple!

Challenge accepted.

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