The clean slate of a brand new yr is one thing to look ahead to.
However as we set monetary targets for the upcoming 12 months, it’s essential to assume past broad declarations, like: “I wish to save more cash.” With out a clear plan mapped out, these forms of resolutions typically fall via.
The 52-Week Cash Problem, however, is restricted and concrete — providing a greater probability to stroll away with success.
You’ll have heard of this problem. The premise is easy, but it surely will get tougher because the yr goes alongside.
The primary week, you save $1. The second week, you save $2. The third week, you save $3…
The thought is to extend the quantity you deposit by $1 every week till you ultimately save $52 in week 52, the final week of the yr. Keep disciplined and persist with the plan, and also you’ll have $1,378 in your account on the finish of the yr.
Think about what you could possibly do with an additional $1,378.
Whereas saving over $1,000 in a single yr is fantastic, the traditional 52-week problem isn’t perfect for everybody. It’s good for individuals who love to lift the bar increased after every purpose. However others shudder on the considered saving over $200 in December. (Following this plan, you’d want to avoid wasting $49, $50, $51 and $52, respectively, within the final 4 weeks of the yr.)
The excellent news is that the 52-week problem might be personalized to work to your monetary life.
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Beginning stability should be lower than $2,147,483,647
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Month-to-month contribution should be lower than $2,147,483,647
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Rate of interest should be lower than or equal to 400%.
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5 Various 52-Week Cash Problem Hacks
We’ve provide you with 5 new methods to finish the 52-Week Cash Problem. You’ll nonetheless make weekly deposits into your financial savings account, and also you’ll nonetheless find yourself with $1,378 by yr’s finish. These choices simply have you ever going concerning the financial savings plan in several methods.
Methodology No. 1 — Odd Numbers Up, Even Numbers Down
This method is for individuals who’d just like the problem to get simpler because the yr winds down.
Right here’s the way it works:
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Begin the yr saving cash on an odd-number foundation, growing the quantity every week by $2. So in week one, you’ll save $1. In week two, you’ll save $3. In week three, you’ll save $5. Hold the sample going till week 26, whenever you’ll save $51.
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When you hit week 27 (midway via the yr), you’ll swap your financial savings quantities to even numbers, beginning with $52. From there, you’ll lower the quantity you’re saving every week by $2. So that you’ll save $52 in week 27, $50 in week 28, $48 in week 29 and so forth. When you hit the final week of the yr, you’ll solely be depositing $2 into your account to succeed in that $1,378 whole.
When you’ll must put away massive sums of cash within the months of June and July, you’ll stress much less about saving cash on the finish of the yr.
Methodology No. 2 — Quarterly Breakdowns
Perhaps you want the concept of saving more cash every week, however you’d relatively break up the timeframe into smaller chunks. With this method, you’ll save incrementally every quarter, which is each 13 weeks.
Right here’s the way it works:
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Deposit $1 into your financial savings account the primary week. For the next weeks within the quarter, you’ll add $4 to the quantity you deposited the earlier week. So for the second week, you’ll deposit $5. For the third week, you’ll deposit $9. Sustain the sample till you’ve reached week 13, whenever you’ll deposit $49.
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Begin the second quarter of the yr by depositing $2. You’ll be in week 14 at this level. Begin the sample of including $4 to every subsequent deposit quantity till you get via week 26. So that you’ll deposit $6 in week 15, $10 in week 16 and so forth till week 26, whenever you’ll deposit $50.
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Begin the third quarter of the yr by depositing $3. You’re now in week 27. Begin up the sample of including $4 to the quantity you deposit every week. In week 28, you’ll deposit $7. In week 29, you’ll deposit $11. Proceed this sample via week 39, whenever you’ll deposit $51.
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Week 40 would be the first week of the final quarter of the yr. You’ll begin off by depositing $4 that week, and then you definately’ll bounce again into the sample you established within the earlier quarters. You’ll must deposit $8 in week 41 and $12 in week 42. You’ll preserve at it till you’ve deposited $52 in week 52, leading to a complete yearly financial savings of $1,378.
Methodology No. 3 — Random Lottery
This technique is for individuals who like to combine issues up and never comply with a predictable path. You’ll select a unique greenback quantity at random every week to succeed in the financial savings purpose.
Right here’s the way it works:
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Get 52 slips of paper, and write an quantity from $1 to $52 on each bit. Fold every slip of paper and put them in a jar.
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Blindly choose a slip of paper every week. The quantity on the paper you pull would be the quantity you deposit that week. Discard every slip of paper after you choose it. As a substitute of doing weekly drawings, you could possibly additionally create a chart or spreadsheet that outlines how a lot you’ll deposit every week. At the start of the yr, you may draw slips of paper for all 52 weeks and write down in your spreadsheet how a lot you’ll save every week.
This method to saving is totally arbitrary. You may deposit $5 one week after which $50 the subsequent.
Methodology No. 4 — Semicontrolled Lottery
This technique is a hybrid between fully random choice and incremental financial savings deposits.
Right here’s the way it works:
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Write deposit quantities from $1 to $52 on slips of paper.
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Separate the paper slips into 4 piles: $1 to $13 in a single group, $14 to $26 within the subsequent group, $27 to $39 in one other group and $40 to $52 within the final group.
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Fold the paper slips and put every group into its personal jar. Label them Jar One, Jar Two, Jar Three and Jar 4.
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Blindly choose a slip of paper from Jar One within the first week. Pull from Jar Two the second week, then Jar Three within the third week and Jar 4 within the fourth week. Discard every slip of paper after you choose it for the week. Return to Jar One in week 5, and repeat that sample via the tip of the yr. You can too select to do the choice for the complete yr originally of the yr, utilizing a chart or spreadsheet to report which quantities you picked from the jars for every week.
With this technique, you’re assured to be depositing a mixture of greenback quantities every month — some on the decrease finish and a few on the upper finish. Though you’re nonetheless incorporating some random choice, you gained’t ever run into the potential for making 4 deposits over $40 in a single month.
Methodology No. 5 — Regular Financial savings
When you thrive on consistency, this feature is ideal for you.
As a substitute of various the sum of money you save weekly, you may deposit $26.50 into your financial savings account every week for 52 weeks to succeed in that $1,378 purpose by yr’s finish.
This can be a easy, uniform method to assembly this money-saving problem. Certain, it might not be as enjoyable (for these of us who assume saving is enjoyable within the first place), but it surely will get the job carried out.
You don’t need to assume twice about how a lot it’s essential save every week. In truth, you may automate your deposits originally of the yr and never take into consideration them in any respect.
The Main Takeaway: Simply Begin Saving
Now that we confirmed you it’s potential to avoid wasting over $1,000 in a single yr, the query is: Which technique will you select?
We’ve highlighted a number of choices, however take note there are numerous different methods to customise a money-saving problem to your liking.
Perhaps you receives a commission each different week, and also you wish to make your deposits biweekly in order that they fall on payday. Maybe you’d relatively decide to depositing cash in your financial savings account as soon as a month. Or perhaps the majority of your earnings comes from ideas, and you favor to avoid wasting your money every day.
You additionally don’t need to constrict your self to saving $1,378. (It’s, admittedly, an odd determine to base your financial savings purpose on.) In case your funds is tight and saving $52 in a single week appears unattainable at any time of the yr, you could possibly minimize the steered weekly deposits in half. You’ll nonetheless web $689 by the tip of the yr. Or perhaps you might have a little bit of wiggle room in your funds and also you wish to double the weekly deposits, which gives you $2,756 in financial savings on the finish of the yr.
Irrespective of the way you select to do it, the essential factor is that you simply’re consciously making the trouble to constantly save. Get within the behavior of repeatedly placing cash apart in order that when 2024 rolls round, saving cash gained’t even look like a problem to you.
Nicole Dow is a former senior author at The Penny Hoarder. Deputy editor Tiffany Wendeln Connors up to date this put up for 2023.