How To Save $3,380 A Year – The Easy Way

    Photo credit to: schoolanduniversity.com

In five years I want to buy a house, a new car, pay off my current car note, get rid of my student loans, and possibly get marry. This is ridiculously a lot of expensive goals, especially if my two-week paychecks are not that big. After paying bills and personal expenses I don’t have much left to save. I’m not necessarily living paycheck to paycheck, but at this rate I will never have enough money to fulfill any of my goals.

I’ve decided to challenge myself to start saving more. I already started by making higher payments on my car payment, credit card, and student loans. That way the interest would be less, and I can get them paid off faster. However, I also want to set aside money that I can later use for whatever purposes, like to achieve one of my goal above.

To do this I’ve came up with a plan that’ll help me save $3,510 a year. Let me explain how this is going to work. On the first week I will set aside $5. Every week after that I will increase the amount by an extra $5. I will continue to increase the amount by $5 until I reach week 26. Here is how the saving’s schedule will look like:

Week 1: $5

Week 2: $10

Week 3: $15

Week 4: $20

Week 5: $25

Week 6: $30

Week 7: $35

Week 8: $40

Week 9: $45

Week 10: $50

Week 11: $55

Week 12: $60

Week 13: $65

Week 14: $70

Week 15: $75

Week 16: $80

Week 17: $85

Week 18: $90

Week 19: $95

Week 20: $100

Week 21: $105

Week 22: $110

Week 23: $115

Week 24: $120

Week 25: $125

Week 26: $130

By week 26 you will be halfway through with the challenge and will have saved $1, 755. Starting on week 27 you will begin decreasing your saving amount by $5. On week 27 you would save $125, week 28 will be $120, and so on until you reach week 52, at which you should be back at $5. This would give you a grand total of $3,380.

If I keep this challenge up for the next five years I will have a grand total of $16,900. That is a lot of money! I have totally use that to make a down payment on a home or buy a new car. This is something that I will be doing on the side. I will pretend that this money does not exist. Meanwhile I will pay as much of my other bills with my remaining paychecks as I possibly can. Once I get something paid off I can have extra money to apply to other things.

I know that this saving plan sounds easier than it looks, but if you can stick to it then it’ll pay off in the long run. Even if you don’t want to do the challenge for the entire year this would be a great way to save for holiday spending. In a little over six months you would have saved up $1,755. Start this at the beginning of May and by mid November you will have that amount set for your Christmas shopping.

If anyone has ever done a challenge similar to this one, or this one, let us know below how it went for you!