Saving money is vital for building a strong foundation with money.
Too many times, we feel like we are depriving ourselves from doing the things we want to do because we are saving money. However, the opposite is true. By saving money, you are opening the doors to other opportunities. Things you wouldn’t be able to do otherwise.
By saving money each month, you are continually building your foundation and improving your personal finances. You won’t be caught off guard with unforeseen circumstances.
Saving money equates to freedom!
Freedom to do what you want when you want!
By saving money, you are increasing the opportunities and freedom you may have.
But, you may be thinking, I am struggling paycheck to paycheck? How can I move from this point in my life to saving $10,000 or more dollars each year?
Simple… You have to be willing to invest the effort and time into what you want to do.
You have to start somewhere and you might as well start today.
For this money saving challenge, we are going to look at how much to save each month.
If you want to save on a weekly basis, then check out our 52 week money saving challenges.
Why Save Money Each Month?
Saving money for the first time is the hardest.
It is almost a complete mind shift that you need to do. You need to move from overspending money to saving money each month. In order for that to happen, you must have a goal in mind. A reason to save money. You need a reason why.
When you save money, you are setting aside money to be used for a future purpose. That future purpose can be one of many things. Some possibilities include:
- Emergency Fund
- Home Repairs or Down payment
- the list can go on and on
By saving money, you are able to pay for things you need in advance. Thus, lowering the dependence on credit cards and stop the cycle of living paycheck to paycheck.
Saving money each month opens the doors for so many things. The opportunities become endless.
But, first you have to start somewhere.
To make it easier for those who get paid on a monthly or semi-monthly basis, a monthly money saving challenge is perfect. Plus we have plenty for you to handpick your next money challenge.
Monthly Money Saving Challenge
For these monthly money saving challenges, we are going to break them down into two sections. For simplicity sake, we are going to call them the beginning stages and the later stages.
Everyone is at a different place with their money journey.
We all have to start someone and that is saving your first $1000. That first one thousand dollars. Typically, this would be for your emergency fund.
From there, you prove to yourself that you can save. So, you increase the amount you save each year.
Then, your saving percentage becomes more important.
So, without further ado, let’s look at the various monthly money saving challenges!
Monthly Money Saving Challenge – Beginning Stages
It is important to note that we break up these money saving challenges based upon where you are within the Money Bliss Steps to Financial Freedom.
At the beginning stages of the Money Bliss Steps #1-4, you need to stay focused on the current step you are working towards. That way you can see progress while building a strong foundation with money.
What are the challenges of saving money?
Many times, your first money saving challenge will teach you how saving money in advance is a game changer in how you handle money.
These monthly money saving challenges are about creating new habits while you are saving an emergency fund or paying off debt. Each month, you set aside a small amount of money to savings. There is no need to compare yourself to the person next to you. This is your money journey and no two are identical.
Depending on the money saving challenge you pick, this amount saved at the end of 12 months would be:
- Your Current Age * 12 = Amount Saved
- (Your Current Age + adding a zero) *12 = Amount Saved
Below in the post, we will go into more detail on each of these 12 month money saving challenges!
This is your money journey! So, don’t worry about comparison. Only focus on your progress and successes.
Monthly Money Saving Challenge – Later Stages
These challenges are broken up to help everyone right where they are at financially. To make things easier, we break it up by the Money Bliss Steps to Financial Freedom.
The later stages would be considered after Money Bliss Step #5 – meaning you are debt free!
The point in your financial journey that saving money can accelerate due to being debt free and building a strong foundation with money. This is where you can actually feel and see progress on why saving money each month matters.
These monthly money saving challenges are about helping you to achieve your next money goal. That next big dream. This is where early habits of saving money become old hat and become the norm in life.
Over the course of 12 months, these aggressive money saving challenges will transform your personal finances.
Shortly, we will go into detail on each of these money saving plans!
Key Note: You can always divide up these higher amounts into two years.
How to Complete the Monthly Money Saving Challenges
First things first, it doesn’t really matter how much you save when. All that matters is you cross over the finish line with the amount needed for the monthly money saving challenge you picked. That is the key here.
But, we want options on how to complete these monthly saving challenges. One method isn’t better than another. The key is saving some amount of money on a monthly basis.
There are three ways to complete the monthly saving money challenges.
1. Same Amount Each Month
This is the simplest method to complete any of the monthly saving challenges.
Every single month you save the exact same amount.
To figure out the amount to save, take your monthly saving challenge amount and divide it by 12.
Example #1: you are saving $3,000, then you would need to save $250 a month.
3000 / 12 = $250
Example #2: if you are saving $20,000, then you would need to save $1,667 a month.
20,000 / 12 = $1,666.67
2. Various Amounts
With these method, you would save various amounts of money throughout the year. This is great when expenses are higher in December and tax refunds and bonuses roll out around March.
Just be sure to save a consistent amount of money that you can afford each month.
A good rule of thumb is to save a minimum of 50% of your monthly saving challenge amount.
Key Note: If you know the amount you pay receive in a bonus or tax refund, then take that amount from your money saving challenge amount. Then, use the new amount and divide by 12.
For example: you want to save $10,000 this year. If you set aside the same amount each month, then you are saving $834. However, in March, you anticipate a refund of $1000 and a bonus of $3000. So, your new monthly savings challenge amount would be $6000 or saving $500 each month.
Just in case your refund or bonus are less, then readjust the amount you need to save on a monthly basis going forward.
3. Tally the Progress
When completing the money saving challenge, you are tallying your progress as you go along. This style works well for someone who is a natural saver.
Every dollar added to the account is tallied as saved.
This method works well for those who want to save whatever is left over in their budget each month.
If you aren’t a natural saver, then automatically set aside half of the same amount each month to reach your money saving challenge.
Example #1: you want to save $3,000 this year. If you set aside the same amount each month, then you save $250. For the “Tally the Progress” Method, you would set aside $125 each month. Then, keep adding to the grand total whenever possible.
Example #2: you want to save $15,000 this year. If you set aside the same amount each month, then you save $1250. For the “Tally the Progress” Method, you would set aside $625 each month. Then, keep adding to the grand total whenever possible.
$1,000 Monthly Money Saving Challenge
The first money saving challenge is to prove you can save money. Whether you are low income or saving money in sinking funds, this is a great place to start.
That is huge because it means you have set aside $1,000 to be used as you have chosen.
Just a note… An emergency fund needs to be established quicker than over 12 months. Find out more info on emergency funds.
$3,000 Monthly Money Saving Challenge
Time to up the game and start saving more money each month.
The $3000 monthly money saving challenge is perfect for someone with tight budget or a low income. But, those things shouldn’t stop you from saving money. It is possible to save money on a tight budget and this post will give you plenty of ideas.
Reasons to save $3000 include a move, vacation, or new furniture – just a few ideas. This is your 12 month challenge. So, comment below and let me know what you are saving money towards.
$5,000 Monthly Money Saving Challenge
The 5K challenge is about going the full distance.
Don’t stop here! By saving $5,000, you are capable of saving money.
The challenge is great to save money for vacation, car replacement, or baby steps towards something big!
Also, you are close to contributing the full amount for a Roth IRA or Health Savings Account. You just have to add a few more dollars to max those type of accounts out.
Money Saving Tips to Help:
- 12 Painless Ways to Save Money on a Tight Budget
- Money Mistakes To Avoid That Will Leave You Broke
- 12 Things I Quit Buying to Save Money
$10,000 Monthly Money Saving Challenge
This is the first big 12 month challenge for the later stages.
It is a HUGE MILESTONE to save $10,000 in one year!
By saving $10,000 over 12 months, you have proven to yourself that you can live below your means. Thus, you have chosen to put an importance on saving and your financial future. There is no better way to build a strong money foundation than by saving 5 figures of money.
Typically, when you are saving your 1st $10,000, it is for a rainy day fund or a down payment. But, you can choose anything to save money towards.
Prefer to save the same amount each month? Then, $1,250 a month.
$15,000 Monthly Money Saving Challenge
Without debt payments to be slave to, it is possible to fast track your money saving plan!
The key is planning your budget on how much you need to save each month. That way you will keep on track and find success at the end of the 12 months.
When you start saving $15K a year, your money saving plan is lined up with your money goals.
$20,000 Monthly Money Saving Challenge
This aggressive monthly money saving challenge will have you saving $20000 in 12 months.
Be prepared to fast track your success to financial freedom in just one year. Being debt free allows you to save more money.
This works well for couples as well as saving for a house or college. Honestly, the options are endless. Plus many of your savings goals may combine for a grand total of $20K.
$25,000 Monthly Money Saving Challenge
This is the granddaddy of all of the 12 month money saving challenges!!
Congrats if you have decided to go big or go home! You should be proud of yourself for picking this monthly saving challenge.
Be prepared, to complete change how you look and interact with money. Saving money is your #1 priority.
Reasons to save $25K in one year include a down payment, buying a car, paying for college, or setting money aside to pay off your mortgage.
More than likely, when completing an aggressive challenge like this one, you are saving for many different things at once. Collectively, they savings accounts will total $25,000.
- Health Savings Account – $7,100
- Vacation – $5,000
- Roth IRA – $6,000
- Car Replacement Fund – $6,900
Which Monthly Money Saving Challenge will you Choose?
There are a lot of options laid out here.
Very simple reason… your money journey is unique to you. Everyone is at a different season of life and can save different amounts of money.
It doesn’t matter which monthly money saving challenge you choose. As long as you complete the challenge in the next 12 months.
Reach your goals and open up the door to many opportunities.
Each of these monthly money saving challenges will help rock your money goals.
Please comment below and let me know which amount you plan to save in the next 12 months.
Must Reads for Success:
- How to Stop Living Paycheck to Paycheck
- Avoid the Trap of Lifestyle Creep and Reach Financial Freedom
- What Comes First? Emergency Fund or Pay Off Debt?
- Money Mistakes To Avoid That Will Leave You Broke
- Money Bliss Steps to Financial Freedom
- Best Finance Books for Unparalleled Success with Money
Money Saving Tips: