It’s week four of the New Year already, which means only 48 weeks until Christmas.
A touch dramatic perhaps, but we all know how quickly that time of year rolls around, when suddenly we are supposed to become magicians and pull money out of a metaphorical hat in order to pay for Christmas lunch, presents, silly season parties and so on. Not to mention the quarterly bills which normally arrive in your mailbox on the exact same day you’ve decided to treat yourself to a new outfit for the office Christmas party.
Last Christmas, none of that pressure fazed me. Not because I am rolling in cash, but because I had committed to a simple savings plan throughout the year which netted me close to $1500. That’s right, $1500. I was able to pay for Christmas presents and an annoying strata bill that came in on Christmas Eve. Plus I had money left over for myself (to buy the things Santa didn’t).
How did I do it? By committing to the 52 Week Money Challenge.
I am not attempting to claim this challenge is my idea, nor is mine the first article written about this particular savings plan. However, it worked for me, And it may just work for you — while also saving you some stress towards the end of the year.
The idea is this: fill a moneybox (or jar or even online account if you’re that organised and also want to earn extra interest!) with a dollar amount corresponding to each week of the year. I used a jar that said “Chocolate Donations Welcome.” Sadly for me, not once did any of the visitors to my home donate either money or chocolate to my jar throughout the year.
It is a simple process to follow. In week one you put in $1, week two $2 and so on until week 52 when you have to part with $52.
Other fans of this strategy like to start backwards, by putting $52 in the jar in week one, meaning by the time December rolls around you’re into the small change. This seemed too complex for me, I liked to look at what week it was in my diary then throw the equivalent cash into the jar first thing on a Monday morning.
Whatever works for you, go with. However I found that by starting small, by the time I got halfway through the year and had to start putting $20 notes in my jar, my mindset was used to the routine and parting with my cash became easier.
Now I should add, I have never been the type of person who was good at keeping their money in a money box. But this plan worked for me – because I had a goal in sight.
Originally I planned to use the money to buy a specific item, then as the weeks rolled by and I found myself dropping all excess silver coins into my jar and then the gold ones too, I thought “Wow, I could probably buy a plane ticket with this money.”
As it turns out, my money was used for a far less glamorous goal – bills and Christmas presents, but at least I came to the end of the year stress free and with a significant amount of cash.
Of course there is no doubt putting your money into a savings account is going to net you far greater interest and potentially be safer than sitting in a jar in your home. Another idea would be to ensure a portion of your salary goes into a high interest savings account each week or fortnight. Also remember the golden rule of saving money; make sure you have paid off all your monthly debts and bills before committing extra to your savings goal.
If you’re willing to try the 52 Week Money Challenge and just starting now in week four, then you will need to deposit $10 into your jar. Add a further $5 next week in week five, $6 in week six and so on.
You may just surprise yourself come Christmas, and be able to afford whatever it is you need, want or simply have to pay in December. Handy for when Santa has forgotten to read your letter, too.
Please note Juliette Saly is RG146 Accredited but the information contained in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.