This year, we have seen the surge and the craze of the 52-saving week challenge. Thanks to one of us, she embraced one of the challenges and she has turned it into a following where I have seen people share their successes in terms of savings, where I have seen people share their success stories in business and how to create a second income.
Trust me she has created a following that I can only dream of and she is one amazing lady.
I know you probably asking yourself, why I am talking about a money-saving challenge in a blog about personal finance.
This is the reason, no one likes talking about money and savings and trust me, personal finance is a sensitive area. What saving challenge do is that they put the fun into the personal finance nightmare that we have all faced at some time. It’s like a competition. It’s a game. Everyone is competing to put something and show something for it at the end the year.
Can savings challenge really impact your personal finances positively? Let’s look, shall we?
Helps Create Accountability
One thing that makes personal finance so hard is lack of accountability that we have. As a personal finance blogger, I will not tell you to cut down on your Java latte or your favorite junk food joint because I know at some point you will still be doing that as you read the countless ways in which you can reduce your savings.
You want to create accountability for your money? I am an advocate for “Take Action Now”. Write down a tangible goal plan. A written plan will help increase your accountability. A great way to start you off is a money savings challenge and one example is the 52-week money savings challenge.
This challenge will also help you keep track of your goal and action plan as well.
It Is Not Savings Plan
I have talked about actual savings plans. Like, savings 10-15% of your monthly for your retirement or for an emergency fund account is a plan. The savings challenge is not something you can say that is confidently it is savings plan.
How is that? The savings challenges can be a good start towards actually showing that you can actually have a savings plan and it can actually work. This should not be your ultimate savings plan. When can it comes your yearly holidays (not the luxurious kind) or getting your kids new school uniform or even textbooks, these savings plans are good for such?
Increases Your Spending Awareness
How aware are you of your spending? Do you know how much you spend on food? Transport and fuel for your vehicle? Entertainment? If you do not know, would you consider a challenge like no spending on the non-essential challenge so that you can determine how much you actually need for your needs?
This will enable you to know how your cash inflow and outflow and increase your awareness o spending
It Will Not Replace Your Budget
Yes, saving challenges are a great tool in helping you get to be more accountable and be more aware of your finances but it should not be used as a budgeting tool. The most basic personal finance tool is the budget as this encompasses all areas of your life and it actually represents a plan and a goal all rolled up in one, unlike the saving challenge plan.
My take on savings plan will come in two suggestions:
Not sure how to start on a personal finance plane? Take up a savings challenge it will create an awareness and accountability that you do not have.
You are already aware and accountable and you are hands-on with personal finance? Consider doing the savings challenge as a fun and entertaining way to your finances or even teach your children on the same.
What is your take on this?
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