The 100 envelope challenge is a fun way to get your finances in order. This challenge is where you take out 100 envelopes and label them from 1 to 100. You then put all of the envelopes into a bucket, basket, or drawer for safekeeping.
You draw an envelope every day, and whichever number you get, you put that much money inside. You do this for 100 days or until all of the envelopes are filled.
For instance, if you draw the number 75 on day one, you would put $75 in the envelope and seal it. If you draw the number 6 on day two, you would place $6 in that envelope, seal it, and keep doing this for another 100 days. You will have saved $5,050 by the end of the challenge!
The 100 Envelope Challenge is a great way to save money because it forces you to be mindful of your spending. It also allows you to see exactly where your money is going each month.
If you’re looking for a fun and easy way to save money, the 100 Envelope Challenge is definitely for you! Read on for more tips about saving money with this challenge.
What’s Needed for The 100 Envelope Challenge
All you need for this challenge is:
- 100 envelopes (any size or color will do!)
- A pen or marker
- A container to store the envelopes in (a shoe box, Tupperware container, etc.)
- Money to fill the envelopes with!
How to Get Started With The 100 Envelope Challenge
- Label your envelopes. On the front of each envelope, write a number from 1 to 100. These numbers will correspond to the amount of money you’ll be putting in each envelope.
- Fill your envelopes with cash. Once all of your envelopes are labeled, start filling them up with cash. You can use any denominations you want, but it’s generally easiest to use all $1 bills.
- Seal your envelopes. Once each envelope is filled with cash, seal it, so you’re not tempted to spend the money!
- Choose a start date. Decide on a day to start the challenge. This can be any day of the year, but many people choose January 1st.
- Draw an envelope each day. On your chosen start date (and every day after that), reach into your container of envelopes and select one at random. The number on the envelope will tell you how much money to save that day.
How to Save $5,000 in 6 Months With Envelopes
If you want to save $5,000 in 6 months, you’ll need to save about $833 per month or $208 per week. Here’s how you can do it:
- Fill 50 envelopes with $20 each. This will give you a starting balance of $1,000.
- Fill 25 envelopes with $40 each. This will add an additional $1,000 to your savings.
- Fill 10 envelopes with $100 each. This will bring your total savings up to $3,000.
- Finally, fill 5 envelopes with $200 each. This will give you a grand total of $5,000 saved!
How to Save $5,000 in 3 Months
If you want to save $5,000 in 3 months, you’ll need to save about $1,667 per month or $417 per week. Here’s how you can do it:
Fill 50 envelopes with $40 each. This will give you a starting balance of $2,000.
Fill 25 envelopes with $80 each. This will add an additional $2,000 to your savings.
Fill 10 envelopes with $100 each. This will give you a grand total of $5,000 saved!
Feeling Ambitious? Keep Going to Reach 10,000
Fill 50 envelopes with $40 each. This will give you a starting balance of $2,000.
Fill 25 envelopes with $80 each. This will add an additional $2,000 to your savings.
Fill 10 envelopes with $200 each. This will bring your total savings up to $6,000.
Finally, fill 5 envelopes with $400 each. This will give you a grand total of $10,000!
How to Do The Envelope Challenge Digitally
To make things even easier, you can automate your savings by setting up a direct deposit from your paycheck into a savings account. This way, you’ll never even see the money, and it will be automatically saved!
You can also use a digital envelope system like Goodbudget or Mvelopes. With these apps, you’ll create virtual envelopes and allocate money to each one. You can use the apps to track your spending and see how much money you have left in each envelope.
No matter how you choose to do it, the 100 Envelope Challenge is a great way to save money and get your finances in order! So give it a try today and see how much you can save.
Other Envelope Systems for Saving Money
If you’re looking for other envelope systems to try, here are a few options:
The Cash Envelope System: This system uses physical envelopes to store your cash. You’ll allocate a certain amount of money to each envelope (for example, $50 for groceries, $100 for entertainment, etc.) and only spend the cash you have in that envelope.
The Debt Snowball Method: This method is used to pay off debt. You’ll list your debts from smallest to largest and make the minimum payment on all of your debts except the smallest one. Then, for the smallest debt, you’ll make a larger payment until it’s paid off. Then, you’ll move on to the next smallest debt and do the same thing.
The 50/30/20 Rule: This rule is a guideline for how to budget your money. According to the rule, you should spend 50% of your income on necessities, 30% on wants, and 20% on savings and debt repayment. This can be a helpful way to make sure you’re not overspending in any one area.
No matter which system you choose, the important thing is to start saving! The sooner you start, the more money you’ll have in the long run. So get started today and see how much you can save.
Summary
The 100 Envelope Challenge is a fun way to get your finances in order. It asks you to take out 100 envelopes and label them with different amounts of money, from $1 to $100. You then put the corresponding amount of money into each envelope and seal it.
The goal is to have all of the envelopes emptied by the end of the year, which means you’ll need to budget and save wisely! If you’re looking for other envelope systems to try, here are a few options: The Cash Envelope System, The Debt Snowball Method, and The 50/30/20 Rule. No matter which system you choose, the important thing is to start saving!
I love this idea! I haven’t heard of it before and I thought it was actually going to be more of an envelope spending system, but this is so cool! I especially like the tips to save 5k in 6 months, etc. Definitely saving this!
Yes, It’s very helpful when trying to save for big trips or getting rid of debt.