There is a purpose why so many younger individuals are turning to strategies just like the 52 week financial savings problem. Saving cash proper now’s onerous. We’re residing by way of days of excessive inflation, a price of residing disaster and a suffocatingly costly housing market. Earlier this 12 months, Yorkshire Constructing Society reported that 5 million younger individuals within the UK haven’t saved something within the final two years. In the meantime, over a 3rd (39%) of Gen Z-ers claimed they lacked the information to make necessary monetary selections.
Fortunately, there are some financial savings strategies which can be surprisingly simple to attempt — even when you do not know a lot about funds. The 52 week financial savings problem is a financial savings plan that is easy, fairly doable (particularly at this financially tough time of 12 months), and means you could possibly save over £1,300 this 12 months. It is secure to say it is the financial savings problem we at GLAMOUR HQ are giving a go in 2025.
Here is the way it works.
How does the 52 week financial savings problem work?
The thought is that every week, you switch an quantity into your financial savings every week (any day of the week, no matter fits you greatest). The quantity will increase by £1 every week, so it is also fairly simple to recollect. So week one, you switch £1, week two you switch £2, all the way in which to week 52 the place you switch £52.
The whole quantity it can save you throughout this problem is critical – £1,378. And the character of the problem means the tip of the 12 months requires rather a lot to enter financial savings, however provides you loads of time to arrange for this by way of your individual budgeting. It additionally means the start of the 12 months (and problem) requires fairly small quantities to be saved, supplying you with the prospect to ease your means in throughout a time of 12 months that may be fairly financially tight.
How can I ensure that I keep on observe with the problem?
In fact, these sorts of challenges look like an incredible concept when a brand new 12 months has simply begun and you are feeling recent and glossy trying on the twelve months forward. However sticking with all of it 12 months, when unexpected bills inevitably crop up? That is the true problem.
Listed below are some prime tricks to keep on observe:
Set a financial savings purpose
We do not imply set an quantity in your purpose – put a face on what you’d wish to spend the cash on. Is it for a vacation? The start of a home deposit? Or simply for a dreamy skincare procuring spree in January 2025? No matter it’s, having an expertise or spend to goal in the direction of makes you extra more likely to focus and succeed with the problem.
Monitor your progress
It is like with any problem – you are feeling motivated by how far you have already come, which provides you the gasoline to maintain going. Whether or not you do this through the use of a monetary monitoring app, writing it on a post-it and sticking it up in your toilet wall, or a spreadsheet, discover a visible strategy to monitor your stability going up and up.
Plan forward
If it helps, set your financial savings for every month apart forward of time. That means, you might be much less tempted to spend it all through the month.
Reverse if mandatory
When you’re balking on the considered saving extra over the festive interval, you’ll be able to at all times flip the problem and start the 12 months making the bigger financial savings. Make the problem be just right for you.
Get household and buddies concerned
Whether or not they need to take part on the problem themselves or simply assist you, sharing your efforts along with your family members will hold you accountable all 12 months round.
How can the 52 week financial savings problem assist me get higher at saving and budgeting?
It is a masterclass in self-discipline on the subject of placing cash apart to save lots of, beginning out with small quantities that will not really feel too painful to reside with out.
Additionally, they are saying it takes 3 weeks to construct a behavior – 52 weeks of constructing saving a behavior might take you a good distance in the direction of making it a part of your long-term price range and routine.