Raise your hand if you’d like an extra $5,000 right now. We’ll see you. Our hands went up too. Oh, the things we’d do: pay off some debt, build up savings, pay cash for those vacations. The list goes on.
Well, there’s a way to get there that has become quite the buzz on social media – and for good reason! With the 100 Envelope Challenge, you can save up to $5,000 in just 100 days. Are you up for the challenge?
What Is The 100 Envelope Challenge?
OK, but what in this 100 Envelope Challenge? It’s a simple, low-tech way to adjust your savings. You label 100 envelopes 1 to 100, and over 100 days (or more), whatever number is on the envelope you choose, you keep that amount of cash in there.
The math works out to $5,050 when you’re done! (1 + 2 + 3 + 4 . . . you can double check us if you want. Or drive to the dollar store for envelopes right now.)
How to Do the 100 Envelope Savings Challenge
You’ll need a stack of 100 envelopes, a marker, a competitive spirit and a healthy dose of will power. Then follow these steps:
1. Label 100 envelopes from 1 to 100.
If you’re doing this with the family, pull out some art supplies and get the kids in to decorate. They can even help you track your money saving progress with our 100 Envelope Challenge chart. Print it out and have your kids color in each envelope as you save! (Or print it out for yourself if you want the visual motivation!)
2. Store the envelopes.
Find a box or drawer to keep all the envelopes (currently empty). a a place for those who are about to swell with bucks.
3. Fill the envelopes with cash.
Okay, enough planning. Filling time. You can grab one envelope each day randomly or go in order. If you want the challenge to get easier through the months, start back (with 100!).
Tips to Succeed with the 100 Envelope Challenge
Okay, those are the basic steps of the 100 Envelope Challenge. And here are some practical and motivational tips to do it – starting with three ways to find (and make) the extra money you need to stuff those envelopes:
1. Create a budget.
First, make a budget so you can see where your money is going. . . and so you can start telling him where to go. Because right now, you have $5,050 that you want to put in envelopes.
2. Increase your income.
Next, find ways to increase your income. Which means you need to do some extra work. Get a word out, sell some stuff, work overtime – or a combination of all three! It’s only for 100-ish days. You can do this!
3. Cut your spending.
The last way to get more money to beat this 100 Envelope Challenge is to cut some of your spending. Again, it’s only for 100 days! (Although, nobody’s stopping you from filling more than one envelope a day. Just saying.)
So, don’t eat out, don’t eat the fancy lattes, brown bag your lunch, stop subs. Who knows – you might find that you can live without some things forever because you prefer to have that extra money in your budget every month.
4. Set a deadline.
Having a specific goal for how long you intend to work this 100 Envelope Challenge will help you stay motivated and focused. The traditional target is to knock it off in just over three months, but if you need more time, take more time! Write down your deadline and keep it where you can see it.
5. Create accountability (and competition).
A challenge is easier when you have an accountability partner to check with. If you have a spouse or children, you should all be working on this together!
But also, let’s be honest – since the 100 Envelope Challenge is about making a game out of saving money, well, make it competition against some friends could be the extra motivation you need to get to the finish line. See who can get there first, or enter as a team and plan a group prize for when you All make it through.
6. Put that money to work.
Once you’ve received your $5,050, it’s time to enjoy your hard work. Don’t waste it. Put it in the budget. Give him a job.
Part of the job should be celebratory, but make most of that money work as hard as you did. Set up a sinking fund, boost your money goals, and move forward with the Baby Steps (aka the proven plan to get ahead with your money – from saving more to paying off debt to building real wealth).
Will it take some effort? Of course! Is it a simple concept that you could start pronto? Also of course! But before you start labeling, let’s talk about some pros and cons of taking the 100 Envelope Challenge.
The Pros and Cons of the 100 Envelope Challenge
Advantages
- Saving up $5,050 is the number one pro. Right?
- Setting goals and achieving them makes you a stronger person.
- Taking the 100 Envelope Challenge makes your goal of saving money more fun!
- Cutting back on spending can boost satisfaction.
- Budgeting (if you don’t already) gives you control over your money. (Don’t stop this step when the challenge is complete, BTW.)
- Working towards a common goal like a family or friend group creates intimacy.
Disadvantages
- 100 days is not a long time, and yet it is. Some people would say it’s a disadvantage that you have to work that hard. (Personally, we think you can do it. And you saw all the praise given to the challenge. We believe in doing hard things.)
- If you are already short on money, due to inflation or any other reason, it may not be possible to clear this challenge in 100 days. Following all those steps we listed on budgeting, increase your income, and reduce your expenses will get you to move on with your money. But don’t be afraid to take on the challenge – and realize that you’ll push through it longer than some.
- Our final destination doesn’t have to be one. And we’ve touched on it a little bit, but let’s be very clear: If you take the 100 Envelope Challenge, do all that work, and then don’t have a solid plan for that $5,050 — it will be gone faster than it . take you to fill that first envelope.
That solid plan starts with the thing we keep mentioning—the budget. And we happen to have a free budgeting app called EveryDollar that you can download. At this time.
Hey, 100 days will pass no matter what. At the end, you could have $5,050 saved, or you could still be right where you are. If you’re up for the work, the results are worth it. So, we ask you again: Are you ready for the 100 Envelope Challenge? (Heck. Yes!)