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According to a Yahoo Finance/Marist Poll survey, only 22% of survey respondents reported being very or completely satisfied with their savings progress over the last year, while 35% were very or completely dissatisfied.
How can you make saving money feel a little easier? Try following an offbeat savings strategy like the “$27.39 rule.” Successfully completing this challenge results in a savings of $10,000 after one year. Here’s how it works.
Saving up $10,000 in one year is no easy feat, and that large number can feel intimidating. The $27.39 rule is a viral savings trend that helps you build up your savings gradually and consistently without feeling overwhelmed.
The concept is simple: Transfer $27.39 to your savings account every day for one year. After 365 days, you’ll have a savings account balance of just about $10,000.
Savings challenges like this can help make achieving a major savings goal more manageable by breaking down a large amount into smaller chunks. Some savers may choose to adjust this strategy — for example, setting aside $192.31 each week or $833.33 each month — depending on their cash flow, pay cycle, etc.
No matter how you go about the challenge, building a strong savings habit is what makes the biggest financial impact.
If you’re already committing to the $27.39 rule, you’ve nailed the hardest part: consistency. From there, the goal is to make every dollar you set aside work harder.
For example, if you put your savings in a high-interest account, such as a high-yield savings account or money market account, you’ll earn a decent amount of interest on top of your contributions.
Right now, the national average interest rate for savings accounts is just 0.39%, according to the FDIC. At that rate, you’d earn about $21 in interest after completing the yearlong challenge (assuming interest compounds daily).
However, say you choose a savings account that earns 4% APY instead. At the end of the year, you’d add about $220 in interest to your original balance without making any extra contributions.
The $27.39 rule is just one of many savings challenges that can help you build a bigger nest egg. If you want to try a savings challenge but aren’t ready for such a large goal, consider these other options:
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$5 bill challenge: Every time you receive a $5 bill — whether it’s from cash back at the store, change from a purchase, or in a birthday card — you set it aside for savings instead of spending it.
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52-week savings challenge: This challenge involves saving $1 the first week, $2 the second week, $3 the third week, and so on. By the final week of the challenge, you’ll set aside $52. And at the end of the year, you’ll have a total savings of $1,378.
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100-envelope savings challenge: With this challenge, you use envelopes to save a lump sum of cash over the course of 100 days. Envelopes are labeled No. 1 through 100, with each number corresponding to the amount of cash that should be put into each one.
There is no shortage of savings tips, tricks, and challenges out there to help you get a bit closer to your savings goals. The key is to find the challenge that you’re most likely to stick to for the best results.
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