How to do the 100 Envelope Challenge
Is it difficult for you to achieve your financial goals? Want to improve your savings in 2022? Have you heard of the 100 envelope challenge?
Saving money is not always easy for everyone. You realize its importance only when you are out of money. Even though we all know it is important, it can be difficult to actually do it!
When it comes to saving money, you may feel like you’re always fighting between saving money for the future and buying the things you need right now. Even those with high incomes can find it difficult to save money.
What is the 100 Envelope Challenge?
Are you looking for ways to save money for your next vacation? Are you willing to save for your dream car or a bigger home? No matter your financial goals, a money-saving challenge can be constructive.
The 100 envelope challenge is money-saving and will help you save money using 100 envelopes. The hundred envelope challenge, also known as the 100 Day Money Challenge, had gone viral on TikTok, a variant of the envelope budgeting method.
The purpose of the 100 Envelope Challenge is to help you kick-start your savings efforts. By the end of 100 days, if you follow the 100 Envelope Challenge exactly as described, you will have $5,050 in all your envelopes.
When you find it difficult to save enough, you can benefit from the 100-envelope challenge. This money-saving challenge can help you save more than you think you can.
If you are unsure of your financial goals and need help, you should definitely use the 100 Envelope Challenge to reach your savings goals.
Also, consider the 52-week savings challenge as well.
How to do the 100 Envelope Challenge
How do you do the 100-envelope challenge? It has the same underlying principle as envelope budgeting. Saving money is made easier by participating in the 100 envelope money challenge.
There will be 100 envelopes numbered from 1-100 on each envelope. Pick one envelope daily and put the amount of cash equivalent to the number written on it. Continuing, you fill up all 100 envelopes – resulting in a $5,050 savings.
To get started, you’ll need simple envelopes, either store-bought or homemade, a willingness to stick to the challenge, and some cash, of course.
How to Save $5,050 in 100 Days
Here is the exact process to do the 100-day envelope challenge.
- Get 100 empty envelopes
- Label each envelope with a number between 1 and 100
- Mark 100 days on your calendar to keep track of your daily progress
- Throw all the envelopes in a box or a container
- Close your eyes and pick one envelope randomly
- Put cash in the envelope according to the number on the envelope
- Seal every envelope that has been filled with the money
- Repeat the procedure every day for 100 consecutive days
- At the end of the 100-day mark, collect all the cash together
- Count it, and you should have $5050 saved
You do not need to go in a sequence of 1 to 100. Keep all the envelopes in a box, close your eyes and just pick any envelope randomly. Whatever number you like, add that much money to the envelope.
Is it worth doing the 100 Envelope Challenge?
Challenges are a great way to spur yourself into developing the habit of saving money if you have trouble finding motivation or persistence. Besides the happiness of saving money, you can also use it to make a down payment on a home or create an emergency fund.
You can also put it in your bank account at your bank or credit union and keep saving until you decide.
Any money-saving challenge you take will have an extremely impressive end result. And if you take the one mentioned here, you will never regret it.
Does 100 Envelope Challenge Work For Everyone?
I wouldn’t say that this challenge can work for everyone. You need to have an income that is more than the total amount of money saved at the end of the challenge. That means quarterly income must exceed $5050 if you want to take up this challenge.
Despite having a decent income, staying committed is probably the hardest part of this challenge. There can be times when you just want to grab an envelope and open it to spend on what you want. You may get tempted to buy something unnecessary with the filled envelopes.
Discipline and sticking to the essentials are the only ways to succeed. If you follow the method sincerely, you will see that huge chunk of savings on the 100th day.
What if you fail to complete the challenge?
You lose nothing even if you fail to complete the 100-day envelope challenge and stop in between. You will still have good savings in the filled envelopes.
For instance, if you give up on the challenge by the 10th day, you will have an extra $55 in the envelopes. Consider that as the 10-day envelope challenge and move on to the next.
You can also make your version of this challenge like a 30-day money-saving challenge or a 50-day challenge to save as you want. Sticking to saving is more important than brainstorming on an ideal money-saving method.
Decide which saving money challenge is right to realize your goals on time and budget.
Here are a few different ways that you can do the 100-Day Money Challenge
If you do not want to follow this exact challenge, you can modify it to fit your needs and availability of funds. You can stretch the same number of envelopes to a broader period, like 200 days or 52 weeks.
- If you decide to add money to the envelopes only on weekdays, you will be saving a specific amount five days a week. Calculating five days multiplied by 20 weeks, you will complete the 100 envelopes in just about five months.
- If you want to take off during the weekdays and follow the challenge only on the weekends, the calculation is two days a week multiplied by 50 weeks to achieve the goal of filling all 100 envelopes. That’s still less than a year; the result will be the same: $5050 of savings.
- You can also save money on alternate days by marking them on a calendar. Put cash in each envelope on the marked day of the week, like Monday, Wednesday, or Friday, and complete the goal of putting cash in all hundred envelopes.
Whatever pattern you follow to complete the 100-envelope challenge, you will save the same amount of $5050 at the end of the planned duration.
Money Saving Envelopes
Your relationship with money and finances can be transformed through money-saving envelopes. Our financial situation and budget have been transformed in so many ways since we started using the cash envelope system. That is something to celebrate!
What are the benefits of envelope budgeting?
People tend to spend less when they use cash instead of plastic, and their spending tends to be more moderate when they pull cash from their wallets. This is one of the biggest benefits of budgeting with cash in envelopes.
Here are some of the advantages of the envelope budgeting method:
1 Taking Responsibility
Envelope budgeting provides several benefits, including helping you take responsibility for your spending. You will be more inclined to spend when you have to take cash out of an envelope before making a purchase.
You may change your mind about purchasing when you pay with cash. This can help you stay away from unwanted and unnecessary buying.
2 Eliminates Overspending
Overspending is pretty hard with this system. A budgeting system that uses envelopes means you cannot spend more than you have in the envelopes. The envelopes do not work as your spending envelopes; instead, they become your savings envelopes. Spending money just to spend money no longer happens.
Seeing empty envelopes can be heartbreaking. This will help you avoid overspending.
How Can You Make The 100 Envelope Challenge Successful One
- Know the difference between needs and wants
- Cut down your expenses on wants precisely
- Do not get tempted to buy things; make a purchase only if it is essential
- Avoid online shopping and save some extra bucks to put into the envelopes
- Stay dedicated to your money goals
- Don’t lose hope if you cannot add cash on some days. It may take a bit longer than expected, but you will do it.
- Opt for frugal living; you can keep much more money aside to succeed in the 100-day envelope challenge.
- Find other areas to be frugal to put the money in the envelope that week. Consider a no-spend challenge or sell unused things online.
- If you would instead add your money biweekly because that is how you get paid, then do that.
Final Thoughts on How to Do the 100 Envelope Challenge
Everyone dreams of having enough money to cover their basic needs, organize their finances, and save a great deal of money. In reality, many people do not have an emergency fund, checking account, or savings account and still live paycheck to paycheck.
Taking up a money challenge is always motivating, and you do not get bored of regular saving methods. The 100 envelope challenge is an excellent idea if you want to save towards your money goals and feel proud of it.