January is the perfect month to start saving and the ‘penny challenge’ is probably one of the simplest and best-known ways to begin building your money pot for 2022.
It is also the perfect way to pay for presents next Christmas and get into the habit of saving every day by starting small and focusing on the end result as it could see you put away an impressive total of £667.95 by December 31, 2022.
The new year offers an ideal opportunity for implementing changes and starting new habits, while shaking off old ones, so why not try the penny challenge and look forward to having extra cash for next Christmas.
To take part, you just have to put away a penny a day (at first), which gradually grows to pounds as the year goes on so that by the end of the year you will have saved enough money to start 2023 with a few hundred pounds in your pocket - or savings account.
How the penny challenge works
Each day from January 1 save what you saved the day before, plus a penny more.
So you start by saving 1p, then 2p, then 3p a day – right the way up to £3.65 by the end of December, 2022.
If you start on New Year's Day, then by December 31, 2022 you will have saved a grand total of £667.95.
12-month daily savings plan
Follow this penny savings plan:
Day 1: Put in £0.01
Day 2: Put in £0.02
Day 3: Put in £0.03
Day 4: Put in £0.04
Day 5: Put in £0.05
Day 6: Put in £0.06
Day 7: Put in £0.07
Day 8: Put in £0.08
Day 9: Put in £0.09
Day 10: Put in £0.10
Day 11: Put in £0.11
Total: £0.66
From Day 100 add:
Day 100: Put in £1.00
Day 101: Put in £1.01
Day 102: Put in £1.02
Double the amount on day 200:
Day 200: Put in £2.00
Day 201: Put in £2.01
Day 202: Put in £2.02
Continue until day 300, then add:
Day 300: Put in £3.00
Day 301: Put in £3.01
Day 302: Put in £3.02
On the final 365th day, drop in £3.56 and it's time to cash in your jar.
If you have followed the plan throughout the 12 months, you should have saved £667.95 to start off the New Year.
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