You may have noticed the 100 envelope challenge popping up on your social media feeds. It's a viral trend inspiring people to save in a creative, hands-on way.
Challenges that turn savings into a game can be fun, but what works best isn't always the flashiest approach. For some, these challenges may be perfect for a kick start. For others, a more flexible, long-term strategy may be a better fit.
What is the 100 envelope challenge?
This challenge is a simple, engaging way to build a savings habit.
How to do the 100 envelope challenge in 3 steps
Here's how to do the 100 envelope challenge in three steps:
- Start by gathering 100 envelopes and a pen. Label each envelope from 1 to 100.
- Pull one envelope randomly each day. Whatever number is written on the envelope is the amount of cash you put in the envelope. For example, if you pull envelope 27, put $27 in it.
- If you've kept up, by the end of 100 days, you'll have $5,050 saved in the envelopes.
If you aren't comfortable using cash, you have the option of using an online random number generator instead of envelopes and electronically transferring the chosen amount into your savings account each day. Or, if it's not feasible to save that much that fast, you can pull envelopes weekly instead of daily. No matter how you do it, the idea is to turn saving into an active process to make the habit stick.
Pro Tip
Start with smaller amounts if $100 daily feels too challenging. You can adjust the envelope amounts to fit your budget!