What is the 100 envelope challenge?
The 100 envelope challenge is a fun savings strategy that challenges you to set aside a specific daily amount for 100 days. The setup is simple: Label envelopes from 1 to 100. Then, every day, choose an envelope and deposit the amount of cash corresponding to the number on the envelope. Continue this for 100 days. If you are successful, you’ll save $5,050 in just over three months! You can use the money to cover a planned expense, including a major purchase, or as an emergency fund.
100 envelope savings challenge instructions
Ready to start the challenge? Follow these step-by-step instructions:
1. Gather the necessary supplies: You’ll need a box of 100 envelopes and a marker or highlighter to participate in this challenge. You can use a spreadsheet to track your progress or download and print our free tracker here:
2. Label 100 envelopes: Using a marker, number each envelope with a dollar amount, from 1 to 100. Find a secure place to store your envelopes. After all, the plan is to save $5,000 with this challenge.
3. Deposit cash into your envelopes: Every day, pull an envelope and deposit the amount of cash that corresponds with the number on the envelope, from $1 to $100. You can do this challenge in numerical order (from $1 to $100) or shuffle your envelopes and choose a random amount each day.
Tip for success: Saving over $5,000 in 100 days can be challenging, regardless of your income and budget. However, a spending tracker app like Lunch Money can help you free up extra cash flow by identifying areas where you can cut expenses.
Pros and Cons of Running a 100 Envelope Challenge
The 100 envelope challenge is one of several fun money challenges you can try, but it’s not for everyone. Here are some pros and cons to consider:
Pros
- It’s designed to help you save a lot of money quickly
- It makes saving money fun
- Customizable in case you want to stretch it over a more extended period
- You can make it a group challenge with family or friends
Cons
- Not everyone can afford to save $5000+ in a short period
- It can be inconvenient as you need physical cash to deposit into your envelopes
- You need a secure place to store your cash
100 envelope challenge vs. the 52-week money challenge
If the 100 envelope challenge sounds too ambitious, consider the 52-week money challenge. This involves saving money in weekly increments, starting with $1 in week 1, $2 in week 2, $3 in week 3, and so on. Continue for an entire year (52 weeks), and you’ll save $1,378 by the end of the challenge.
Final Thoughts
The 100 envelope challenge is a fun way to save money quickly. It also provides a sense of accomplishment and a clear plan you can stick to. If your budget doesn’t allow you to save that much money in 100 days, consider stretching the challenge over a longer period or choose a more modest challenge, like the 52-week money challenge.
FAQs
How much money can I save using the 100 envelope challenge?
If you complete the 100 envelope challenge, you’ll save $5,050, the amount you get when you add every number from 1 to 100.
Is the 100 envelope challenge the same as envelope budgeting?
No. While they sound similar, the 100 envelope challenge is a short-term savings challenge. Envelope budgeting, or cash stuffing, is a popular budgeting method that involves using envelopes to set various budget categories and then “stuffing” each envelope with enough cash to cover your budgeted amount.
What is the no-spend money challenge?
A no-spend money challenge works just like it sounds. You challenge yourself not to spend any money on discretionary items (non-essentials) for a set period, like a week or, if you’re really brave, an entire month.
