This popular money-saving tip claims to be able to help you save $5,000 in just 100 days. The plan is to label one hundred envelopes with the relevant numbers, and then put the money into each one on a daily basis. For example, you could put $1 in the first envelope, $2 in the second, $3 in the third, and so on until you reach $100 in the 100th envelope.
Like @budgeting.money, who proudly displayed her binder with its 100 numbered slots, some individuals prefer to utilize a specialized binder designed for this challenge. In the video, which has garnered over 100,000 likes, she states, “I try to put in as much money as I can every time I have spare change.” “This definitely helps save a ton of money, and it’s a great habit to develop.”
“I have one [of these binders] but I always just take the money out and spend it,” one commenter noted, while another gushed, “I loooove this.” That is why, in every way, this presents a problem. You must be very disciplined not to remove the bills from their envelopes once you have put them in. Finding the money is another obstacle; as a result, you’ll have to cut back on some of your spending.
How To Save $5,050
Changing one’s perspective from one of spending to saving is the central theme of the 100 Envelope Challenge. Save that $17 for your Day 17 envelope instead of buying a bagel and coffee. Save that $37 from your Sephora shopping spree and put it in your Day 37 envelope instead. People that work with cash, such as baristas, waiters, and servers, will already have the necessary funds on hand for this assignment. Going to an ATM after payday is all it takes if that doesn’t work.
Step 1: Make Your Envelopes
Amazon and the TikTok store both sell 100 Envelope Challenge binders, which are highly favored among TikTokers. To keep track of the days you’ve filled, these binders come with see-through labeled slots and a convenient checklist. While some like to properly store their bills in a plastic container, others choose to name their own envelopes.
Step 2: Start Filling The Envelopes
Most people undertake this challenge in a specific sequence, with $1 going into the first envelope on day one, $2 into the second on day two, and so on. However, you may make it more fun by picking an envelope at random, as TikToker @megannicolee21 does. After her shift as a server ends, she collects her tips, finds an envelope in a box, and puts the money inside.
Going against the grain can sometimes pay off. You should put a fresh twenty dollars in your Day 20 envelope before spending it if you have any spare. Put your fifty dollar birthday cash in the Day 50 spot before you have any major thoughts.
You can also benefit from going backwards. The creator, @twirlwindgourmetcc, began working backwards from Day 100. “It will become easier and easier once the hard stuff is done,” she remarked. “The 100 envelope challenge is up to you. How you complete it is entirely up to you.”
Step 3: Keep Going
Stay committed to your 100 Envelope Challenge until every slot is filled. Allow yourself to be inspired and motivated by the steadily increasing amount of dough in your pile. Remembering that you are only need to do something for a hundred days can serve as additional motivation. Even while it seems like a lot at first, you probably won’t even notice the $12 you would’ve spent on bodega snacks otherwise.
Step 4: Don’t Touch It
Instead of just transferring funds around in your savings account, this challenge wants you to save actual money so you can see it grow. Quoted as follows: “I’m the type of person who finds it easier to save money if I can see the cash in front of me.” This was posted by @alliehoffberg on TikTok. Avoiding spending it becomes easy with it.
While it’s convenient to be able to make random purchases with a debit card, saving actual money can motivate you to be more deliberate in achieving your objectives. In a moment of weakness, don’t give in and delve into your envelopes. Put your cash in an envelope and don’t touch it again.
Step 5: Keep It Safe
Keep the binder or envelopes in a secure location, such as a locked box or a concealed drawer, as this is actual money we are discussing. Avoid leaving it on a table or carrying it about for added safety.
Does It Always Work?
Feel free to ask for more time if you can’t guarantee a steady stream of income to save up for 100 days. Over time, you will accumulate $5,050 by simply filling your envelopes whenever possible.
Avoid charging unnecessary purchases to a credit card if you want to save money. It would be counterintuitive to put $75 in cash and use your card for the same amount.
If you plan to incur debt as a result of this challenge, there is no use in doing it, says an article in USA Today. Reducing frivolous spending will help your money stack up more quickly.
What To Do With Your $5,050
A lot of individuals have a plan before they begin the 100 Envelope Challenge. While @griffinarnlund plans to use some of her $5,050 to take a vacation, @carsyn hall says she’s saving for a car on TikTok. It’s acceptable to participate in this challenge for just recreational purposes or to save up for an essential item.
In addition to helping you save for the future, this challenge is a great method to build up your emergency fund. Many individuals do not have an emergency fund that is large enough to cover three to six months of living expenditures (e.g., bills, rent, petrol, etc.), as reported by USA Today. If something unforeseen happens to you, like a big auto repair, or if you lose your work, this is the money that will cover it.
You should open a high-yield savings account at the bank with your $5,000 to put some money away for emergencies. You should feel much more secure about your financial situation with that kind of money saved up.
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