1p Savings Challenge: Save £667.95 in a Year
Save 1p on day one, 2p on day two, and end the year with £667.95. Here's how the 1p challenge works and how to make it stick.
If the idea of saving hundreds of pounds feels overwhelming, the 1p savings challenge is a gentle way to build a pot without changing your lifestyle.
How the 1p challenge works
On day one you save 1p. On day two you save 2p. On day three, 3p. You add an extra penny every day, so by 31 December you put away £3.65. The total saved over the year is £667.95.
You do not have to do it in calendar order. Many people prefer to transfer the monthly total in one go, or use their bank's savings feature to round up spending. What matters is the habit.
Make it automatic
The easiest way to stick with it is to automate the saving. Set up a standing order for roughly £55.67 a month into a separate savings account. If that is too much, start with a smaller fixed amount and build up. Once you know how much room you have after essentials, use our Salary After Tax Calculator to plan the right amount.
Who is it for?
This challenge suits anyone who wants a low-risk way to start saving. It is especially useful after Christmas or before a holiday, when you need a lump sum a year later. The key is to keep the money out of your current account so you are not tempted to spend it.
Bottom line
The 1p savings challenge turns saving into a game. Small daily amounts feel painless, yet they add up to a useful emergency fund or treat pot. For more saving ideas, see our Banking & Savings guides.
_External resource: MoneySavingExpert's 365-day 1p challenge thread has a printable chart and community tips — read it on MSE.