Biweekly Money Saving Challenge [2024] Tips and Tricks
By Maddy Scheckel Saving money is hard. That’s why only 54% of adults have at least 3 months of emergency savings.
But, it’s definitely not impossible. And with the right strategy, it can even be entertaining!
One popular strategy is the biweekly money saving challenge. If you do it right, it could save you hundreds or even thousands of dollars in just a few months.
Below, I’ll describe the challenge and show you how to beat it. I’ll also share some other strategies that can be just as beneficial.
Read on, folks! You’re on the verge of unlocking a brighter financial future.
What is a Biweekly Money Saving Challenge?
A biweekly money saving challenge involves setting aside a certain amount of money every 2 weeks (biweekly). This can be easier than a weekly challenge, especially if it corresponds to your paychecks.
With a classic biweekly money saving challenge, you’d start by setting aside $5 during the first 2 weeks. Then, you’d increase the amount you set aside by $5 during each subsequent 2-week stretch.
So your weekly savings would look like this:
- Weeks 1-2: $5
- Weeks 3-4: $10
- Weeks 5-6: $15
- Weeks 7-8: $20
In theory, you could maintain this pattern for as long as you’d like. But eventually, you’re going to reach the point where it’s no longer sustainable. That’s why your best bet is to pick an amount you’d like to reach. Maybe it’s $160 per 2-week period, and once you get there, just try to stick to it.
Completing a biweekly money saving challenge is a great way to boost your financial health. Not only will you set aside a decent chunk of change, but you’ll also develop a strong set of responsible habits.
Source: Rocket Money
How to Do a Biweekly Money Saving Challenge
The basic idea of a biweekly money saving challenge is simple: You set aside a certain amount of money every 2 weeks.
But how can you design a specific challenge that will help you reach your goals? And once you’ve started, how can you stay on track?
You can answer those questions yourself by following this 5-step plan.
1 – Consider Your Goals
Your first step as an aspiring saver is to decide on some main objectives.
First, ask yourself why you’re saving in the first place. Are you planning to move to an expensive city? Are you dreaming of a trip around the world? Having a concrete reason for saving will help you set your goals, and it will also make it easier to stay motivated.
Once you know why you’re saving, you can focus on how much you want to save. You should be ambitious, but you also need to choose a reasonable target. If your goal is totally unrealistic, you’ll just get frustrated and quit.
2 – Decide on Your Rules
There’s no single way to design the biweekly money saving challenge. Sure, the classic version is to save $5 the first 2 weeks and then increase the amount you set aside by $5 every time. But it’s not like there’s a “challenge police” that will arrest you if you deviate from the plan. In fact, designing your own rules is the best way to make sure the challenge works for you.
Start by considering how much you’re trying to save. With the “classic” version, you’ll end with $455 in savings after 26 weeks (half a year). Does that sound solid? Or is your goal to save even more in that time? If you’d rather save faster, then try increasing the contributions by $10 instead of $5.
It’s also worth considering when you’ll level off your biweekly contributions or wrap up the challenge altogether. Eventually, the amount you set aside will become too much to sustain.
3 – Plan out the Biweekly Savings Ahead of Time
The whole point of the biweekly money saving challenge is to give you structure and accountability. That means it will only work if you create a rigid plan – you know, the kind of plan you’ll actually stick to.
So once you’ve chosen the rules for your challenge, pull out your calculator and take a moment to plot out exactly how much you’ll set aside at each 2-week interval.
I’d also recommend leaving the paper somewhere you’ll always see it. I know, I know – guilting yourself isn’t always pleasant. But it can sure be effective!
4 – Decide Where to Keep Your Savings
Sock drawer, piggy bank, under the mattress – there are plenty of places to stash the money you’re setting aside. But to maximize the effects of saving, you might want to think a bit more strategically.
All that money you’re saving doesn’t have to just sit there. It can grow! All you have to do is put it in an account where it’ll earn interest.
A high-yield savings account (HYSA) is likely your best bet. These days, some accounts will earn you a 5% annual percentage yield (APY).
Check out this article on the best 5% interest savings account to learn more.
Then, there are other types of accounts and low-risk investments that also earn interest. One option is the Vanguard Cash Plus Account. Read this Vanguard Cash Plus Account review to find out more.
And if you’re looking for a way to boost your balance fast, check out these banks with immediate sign-up bonus.
5 – Use Technology to Keep You on Track
The first days of the biweekly money saving challenge are often the easiest. Your motivation is at its peak, and the contributions to your savings are still pretty small.
But as time goes on, you could find yourself struggling. That’s where you’ll need your secret weapon: technology.
There are some amazing personal finance apps that can help you track your spending, create a budget, and even deposit money automatically into a savings account.
Rocket Money is one option. It allows you to easily cancel unwanted subscriptions while putting your savings on autopilot. Will this make the challenge easy? Probably not. Meeting an ambitious savings target is almost always hard! But it will definitely make the process simpler, and that could be enough to get you over the finish line.
Also see how much you could save by learning how to cancel all subscriptions on your debit card or credit card yourself.
Source: Vanguard
Alternatives to The Biweekly Money Saving Challenge
A biweekly money saving challenge is a great way to kickstart the saving process, but it’s far from the only option. In fact, you should probably consider a wider range of strategies so you can choose the one that’s best for you.
Below, I’ve listed fun alternatives to the biweekly money saving challenge.
And for more saving tips, check out this guide on how to save $10,000 in a year.
The 52 Week Money Challenge
The 52 week money challenge is similar to the biweekly money saving challenge, but you put some money away every single week instead of every other week. Also, the challenge is scheduled to last exactly 1 year.
Here’s how the classic version works:
- On week 1, you set $1 aside.
- Every subsequent week, you increase the amount to match the number of the week. So, on week 52, you’d set aside $52.
- At the end of the year, you’ll have saved $1,378.
As with the biweekly challenge, you can change the dollar amounts to match your personal goals. Read this full explanation of the 52 Week Money Challenge.
The No-Spend Challenge
The no-spend challenge is just what it sounds like: a strategy for avoiding unnecessary expenses.
With the standard version of the challenge, you try to go 1 month buying only what’s absolutely necessary. That means no eating out, no drinks at the bar, and no taking an Uber when it’s possible to walk. It’s tough, but it’s worth it. You’ll save a lot of money, and you’ll discover some free ways to have fun.
Another option is to alternate weeks. So, you’d avoid expenses one week, then live “normally” the next. This can make the process a little less joyless. Just make sure you don’t take the “normal” weeks as an excuse to splurge!
The Cash-Only Challenge
As the name suggests, the cash-only challenge calls for avoiding credit cards for an extended period of time – often a month.
The reasoning here is simple: People tend to spend less when they’re using cash.
Why? It’s psychological!
You can tap a credit card without a single thought. But when you have to pull the physical bills out of your wallet, you’re more likely to realize how much you’re actually spending.
The great thing about the cash-only challenge is that it doesn’t feel like a sacrifice. You’re not forcing yourself to spend less. You’re just changing your methods and then hoping to save money without even noticing.
The $5 Challenge
The $5 challenge might sound a bit crazy, but it’s totally effective – especially for restaurant servers or anyone else who receives cash tips.
There’s only one rule: Every time you receive a $5 bill, you have to save it.
Eventually, the habit will become automatic. And once those $5 bills are out of the way, you won’t even miss them. You’ll just spend the remaining bills in a guilt-free way, knowing the “responsible part” has already been taken care of.
After a few months of this, you could have quite the stash on your hands!
The 100 Envelope Challenge
The 100 envelope challenge is another great strategy for anyone with lots of cash on hand, and it can save you some serious money. $5,050, to be exact – and in just 100 days!
Here’s how it works:
- Get 100 envelopes.
- Number the envelopes 1 – 100.
- Shuffle the envelopes and stash them in a drawer or container
- Each day for 100 days, pick an envelope at random. Check what number is written on the front, and then put that dollar amount inside.
- Do this every day until all the envelopes are filled, and you’ll have yourself over $5,000.
Commonly Asked Questions About The Biweekly Money Saving Challenge
What is The Saving Challenge for Biweekly Pay?
The saving challenge for biweekly pay calls for saving a certain amount from your paycheck every two weeks. After the first paycheck, you’ll set aside $5. With the second paycheck, you’ll save $10. Then, you’ll keep going, increasing the amount by $5 each time.
If you get paid twice a month and find yourself struggling to account for that in your budgeting, learn how to budget biweekly paycheck. And if you need to ramp up your savings fast, learn how to save $3000 in 3 months.
To learn which budgeting app could best help you manage your finances and boost your savings, check out these comparisons of Rocket Money vs the competition:
Then use a net worth tracker to see how your new financial strategies are paying off.
How to Save $5,000 in 3 Months Chart Biweekly?
To save $5,000 in 3 months, you’d have to set aside $833 every 2 weeks. That’s because there are 12 weeks in a 3-month period – and since you’re setting money aside biweekly, you’ll have 6 opportunities to save. $5,000 divided by 6 equals approximately $833.
What is The $5 000 Savings Challenge Biweekly?
The biweekly version of the $5,000 savings challenge calls for setting aside a certain amount of money every 2 weeks until you’ve saved $5,000. There are multiple versions of the challenge, and you can find the one that matches your financial goals.
Biweekly Savings Plan $10,000?
There are multiple biweekly savings plans that would help you save $10,000. One option is to set aside $384.62 every 2 weeks, giving you $10,000 after a single year. You could also create a more complicated plan where you increase the size of your biweekly contributions.
Biweekly Savings Challenge $5,000?
A biweekly savings challenge can help you save $5,000 by setting aside money every time you receive your paycheck. You could simply set aside $192.31 every 2 weeks, giving your $5,000 in a single year. You could also slowly increase the amount you set aside each week.
