Saving money is a difficult task for anybody, regardless of their financial situation. Keeping up with monthly expenses like rent, food, and utilities can be a struggle for some people. The effort of saving money on top of one’s usual costs may seem impossible.
However, there is good news – there is a popular technique to save money without the bother. If you’re asking, “How can I save $5,000 in three months?” The 100 Envelope Challenge is for you. There’s no need to go ultra-frugal or live. You need 100 empty envelopes and a solid will to complete this 100-day money challenge.
What Exactly Is the 100-Envelope Test?
With the help of the 100 envelopes, you can save $5,000 in 100 days. It’s a pleasant way to save some extra money for a rainy-Day fund. The 100-day money challenge brings a new twist to saving money because most of us don’t have thousands of dollars sitting around.
The TikTok 100-day money challenge began as a simple way to save money or a hack. Mon emphasized to TikToker Invest followers that this money-saving approach might be completed in 100 days or even a year, depending on the individual’s needs.
100 envelope challenge is a popular hashtag for people documenting their 100-day money challenges so that they may save $5,000 in 100 days.
What is the 100 Envelope Challenge?
If you could save $5,000 in just 100 days, would you? It’s referred to as a challenge, but it’s pretty straightforward. Each envelope has the numbers 1 to 100 written on it. Then, over 100 days, select an envelope at random. The amount of money you put in the envelope corresponds to the number on the front of the envelope you choose for a particular Day. You’ll have saved $5,050 in 100 days.
Make use of Digital Envelopes:
- The 100-day money challenge can be done digitally rather than with 100 physical envelopes. Here’s how to do it.
- Download a printable tracker with the numbers 1 to 100 for the 100-envelope challenge.
- Open separate savings account into which you can deposit the money during the 100-envelope challenge or use direct deposit.
Why is the 100 Envelope Challenge a great way to motivate yourself?
One hundred envelopes filled with random amounts of money between $1 and $100 in 100 days is impressive.
To what extent does the 100-Envelope Challenge pay off financially?
You can save more than $5,000 in just over three months. The 100-envelope challenge’s adaptability is a huge plus. Forgiving if you make mistakes or fail to keep on a Day or two, the challenge may be fun.
Saving money can be as simple as putting 100 cents in an envelope. By following the challenge’s instructions to the letter, you can jump-start your savings and establish a pattern of consistent savings.
There are advantages and disadvantages to everything:
The 100-day money challenge has its advantages and disadvantages. Before committing to the TikTok version of the envelope budgeting strategy, here are a few things to think about.
Pros:
- Finding a simple solution to save money quickly is the issue.
- It’s also convenient when you need money.
- If your financial status changes, you can quit and begin the challenge as soon as possible.
- The 100-envelope challenge is a great way to get into saving money.
Cons
- Completing the challenge necessitates a certain amount of drive.
- The box may be neglected in an area where you wouldn’t ordinarily check.
- The money to put aside in an envelope number may not be readily available on all days.
- Having large sums of money sitting around could be dangerous.
- If you don’t already own 100 envelopes, you’ll need to purchase them.
Bottom Line
Suppose you remove money from your bank account to put into the envelopes. You may be better suited to depositing the money into a savings account rather than putting it into the envelopes. If nothing else, your money will at least be earning interest.
