How to make the "100 Envelope Money Challenge" work for you!

Saving money can be a challenge, but with the right tools and strategies it's definitely doable, and can even be fun! The '100 Envelope Money Challenge' is a great way to get started and it's easy to do. Let's chat how to make the challenge work for you, as well as some tips for staying motivated. 

What is the '100 Envelope Money Challenge' and how does it work? 

The 100 envelope money challenge is a way to motivate yourself to save money. The idea is that you grab 100 envelopes and label them 1-100. The numbers represent the amount of cash you're going to stuff in each envelope. 

For example, if you grab the 1 envelope, you add $1, if you grab 52, you'll add $52. Most people grab an envelope two times a week so the challenge is up in a year. At the end of the year, you'll have saved up $5050 in an easy, fun, and non stressful way. You can even go digital and simply transfer money online into a savings account versus stuffing an envelope.  

With either method, you'll want to use a '100 Envelope Money Challenge' tracker sheet (like this one). This makes it fun and easy as each time you stuff an envelope or transfer money, you'll cross that one off on your tracker sheet. This not only keeps you on target but lets you see your progress. Hang it somewhere you'll see it everyday, like your fridge, so it can help you stay motivated and on track.  

If you want to go old school, you'll need 100 envelopes (labeled 1-100) and a box to store them in. If you're like me and love the digital world, make sure you open a separate online account, different from your everyday banking account. This is important as you'll be transferring money between accounts according to the challenge (like you were stuffing an envelope). If you don't create that separate account, you won't be setting yourself up for success. 


Here's how it works: you pick an envelope two times a week. Each time you pick an envelope, stuff it with cash in the amount of the number written on the envelope. Challenge yourself to not spend any of the money in those envelopes until the end of the challenge. The challenge is designed to grab an envelope two times a week and in one year, you'll have saved up $5050.  

You can customize this challenge to fit your own needs by grabbing three envelopes a week, or just one....You could go in order or surprise yourself every time you pick. If you pick an envelope with an amount you'd rather not put aside that week (life happens -right?!!) simply pick an envelope with a lower amount on it. You could even run the challenge backwards saving 199$ the first week (by picking $100 and $99) and so on...if you're going digital, use your tracker sheet to pick the amounts and then transfer those amounts into your savings account and then check them off your sheet.  

The importance of a goal when saving money 

When you're looking to save money, it's important to have a goal in mind. Having a goal also helps keep you motivated; it's a tangible representation of what you're working towards. 

There are all sorts of different goals you could choose when it comes to money, but some of the most popular ones that work well for this challenge are: 

- being able to take a dream vacation 

- being able to buy a new car 

- having enough money saved up for a rainy day fund 

No matter what your goal is, make sure it's something you're passionate about. This will help you stay focused on it – and saving money for it! 

Tips for sticking with the challenge 

1. Create that money challenge goal. Make sure your goal is realistic and in line with the amount of money you will be saving. In the 100 envelope money challenge, you will have saved up $5050 at the end of one year. Not quite enough for a down payment on a house but a dream vacation or new car-definitely doable!  

2. Track your progress! Use a money challenge tracker to mark off each and every time you stuff your envelope or transfer money into your savings account. Keep this somewhere you'll see it every day to help you stay motivated and on track.  

3. Find an accountability partner. Perhaps your spouse is going to enjoy that new car or your BFF will be joining you on that dream vacation too! Having someone to help keep you on track can be really helpful. Or invite them to join you in the challenge and save up their own money right along side you! 

4. Set a deadline. If it's a dream vacation, go ahead and pick the dates for when your challenge will end. Having a deadline will help motivate you to stick with the challenge and not delay stuffing those envelopes. 

5. Any time you get discouraged, think of what you're going to be buying at the end of the challenge. Imagine sitting in your new car and how that will feel, even envision the smell of new leather. Or see yourself laying on the beach listening to the ocean waves crashing against the shore. The more specific you can be, the easier it will be to turn your discouragement into 'I got this'.

How to track your progress 

Don't forget to use a money challenge tracker sheet. It's a great way to track your progress visually. You can track how much money you've saved, what envelopes you've emptied, and stay motivated to keep going. If you need a money challenge tracker sheet, I invite you to check out mine here, available in my Etsy shop.    

Saving money can be a fun and rewarding challenge. When you have money saved, you can feel more confident about your ability to weather any storm, or you can use that money to enjoy life experiences that you may not have been able to afford before. So, if you're looking for a way to make your finances more stable and add some excitement to your life, consider trying out the 100 envelope money challenge!

Legal imprint