1p Saving Challenge

1P SAVING CHALLENGE – HOW TO SAVE £667 IN ONE YEAR

1p Saving Challenge
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Do you earn in pennies but want to increase your savings after one year? Are you teaching your children the importance of saving and are looking for an easy way to do so? If any of these is true about you, then look no further. We’re introducing to you the 1p savings challenge. It is sometimes called the 365 day penny challenge. What is the 1p saving challenge?

WHAT IS THE 1P SAVING CHALLENGE?

It is a ‘saving challenge’ where you save 1 penny each day for one year, increasing each day’s saving with one more penny. That is, you save 1 penny on day one. The next day you save 2 pennies, day 3, three pennies. If you increase each day’s savings by adding 1 more penny to the previous day, on day 365 you’ll be saving £3.65 (corresponding to the 365 days in the year).

The formula is simple. 

Day 1 = 1 penny

Day 2 = 2 pennies

Day 365 =  365 pennies (365P = £3.65)

HOW MUCH DO YOU SAVE ON THE PENNY CHALLENGE?

If you add up the total pennies for 365 days. You’ll have saved £667 in one year.

1P CHALLENGE FORMULA

Have you heard of the Fibonacci numbers? This challenge follows the same pattern. To formula for the total money saved on any given day is:

Total of yesterday + Savings due today = Total of today.

Total of Day 1 + Day 2 = Total of Day 2

Total of Day 2 + Day 3 = Day 3

Total of Day 3 + Day 4 = Day 4

WHY YOU SHOULD TRY THE CHALLENGE

1p Saving Challenge
  1. THIS IS A FINE WAY TO INTRODUCE CHILDREN TO MONEY SAVING

The world today encourages uncontrolled spending. No thanks to the advertisement media. 

Images of “big spenders” feeling “happy” is shown in advertisements. They grow up to associate spending with happiness. This challenge is a fine way to teach them that spending doesn’t not give you joy, but saving can. 

Teaching them to drop a tiny penny into a piggy bank will be relatively easy for them.

By the end of month 3, they only still be saving about £1.20 daily. 

According to Healthline, it takes an average of 66 days for a new behavior to become automatic.

The idea is, by this time, the children must have begun to form a habit of saving money.

  1. IT IS EASY TO IMPLEMENT
1P SAVING CHALLENGE

This is probably the easiest saving technique there is. Saving a penny is easy to do so a beginner will not feel the absence of one more penny out of his pocket.

But seeing the result after 6 months, for example, will motivate you to do more. When you realize how much you can get by saving very little each day, you will be moved to save even more, or at least, to keep continuing the challenge to the end.

  1. IT IS GOOD FOR THOSE WITH LOW INCOME

One major complaint of those with little or no savings is that their expenses are equal to their income.

And there is truth to this. Some households are barely able to get enough to go by. For these people, savings is a foreign word. 

But this is a fine way for people like this to save. When they realize that by saving just one more penny, you can save close to £700. It is easier as it usually has no noticeable effect on the family expenses.

BENEFITS OF SAVING MONEY

1P SAVING CHALLENGE
  1. FREEDOM

Who will argue that we are not slaves in some form. Although we live in a world where freedom and equality is talked about. Yet we’re slaves to debt, finances, unsatisfying workplace.

We’re slaves to our homeowners, increasing medical bills and gas prices. 

Would you not rather be in full control of these areas of your life. That can be possible if you have enough income. 

Unfortunately, we’re not always in control of our income. The economy and our employers do. But we’re sure in control of our savings. This in turn can translate to our future earnings. 

The 1P saving challenge can help you meet your financial challenges. Or at least, it will start you in that direction.

  1. EMERGENCY FALL BACK PLAN

Life is comedian. It makes you laugh, when you don’t want to. Have you ever noticed when emergencies like to occur? 

Maybe it’s superstitious to say emergencies know when you’re broke. But if you have an African background, you’ll probably believe me.

They always come at the wrong time! When you’re broke. Maybe they know the sound of an empty account pocket or account. Whatever!

But saving is the antidote to this dilemma. Having money stuffed in a piggy bank or savings account can help you deal with emergencies.

Talking about emergency superstitions. If it is true that they only occur when you’re broke. Then save up and don’t be broke. And you won’t have them. Sounds right! Right?

The 1p saving challenge can make a good emergency fund.

DIFFERENT TYPES OF 1P SAVING CHALLENGE

  1. The 1p saving challenge, and
  2. The reverse 1p saving challenge
  1. THE 1P SAVING CHALLENGE

This has been discussed above. Now let’s talk about another method to this challenge.

  1. THE REVERSE 1P CHALLENGE

This is as the name sounds. Reverse. It means saving from the maximum 1p challenge, that is, £3.65. If you start from day 1 of a leap year, then your starting amount is £3.66. 

Now you subtract one pound from your previous day amount. That is, 3.65 – 0.01. So day is, you save 3.64, subtract 1 penny until you get to day 365, when you’ll only have 1 penny to save.

These techniques can be confusing if you’re not good at calculations. But using the 1p saving challenge chart can help.

Other persons, on the other hand, might prefer to start from  the highest price when they have the eagerness to begin. As time passes when the zeal might have begun cooling off, they’ll have less to save each day.

If you’re among the second set of persons, then the reverse 1p challenge is for you.

4 thoughts on “1P SAVING CHALLENGE – HOW TO SAVE £667 IN ONE YEAR”

  1. This is such a simple and practical way of saving money. It reminded me of the concept of having a piggy bank as a kid. Thank you. It is indeed very helpful.

    1. Your subtopic on delayed gratification “No impulse spending” is probably my best from your Sinking Fund article. In this fast paced world, delayed-gratification has almost become obsolete. Very well said.

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