Penny Savings Challenge With A Penny A Day For A Year

Penny savings challenge is one of the easy to pursue challenge also it is fun and painless game

Saving a penny a day for a year is not going to impact you at all unlike the 52 weeks money saving challenge

You don't even need to make any sacrifice of any kind

Nevertheless, I will show you how you can make decent money from the penny savings challenge

Before I start, do you remember the wheat and chessboard problem?

Well if you place a wheat grains on the chessboard as follows

Just place one grain on first square then two on the second, four on the third and keep doubling

The total number of grains is going to be 18,446,744,073,709,551,615

That is the effect of doubling – of course I will not double the cents but I will do something way simpler so let us begin

How much you would save if you save penny a day

Since we have 365 days per year so a penny a day for a year is the accumulation of 365 pennies

Very easy as this is equal to $3.65 at the end of the year

I know nobody would take the initiative to save $3.65 at year end that's why I will display different versions of Penny savings challenge

What is Penny Saving Challenge

The penny savings challenge is a new unique kind of money saving challenge

You save 1 penny on day one, 2 pennies on day two and so on till $3.65 on the last day of the year

Can you imagine at the end of the year how much you will accumulate? you will save $667.95, weird right!

What do you require for the Penny Challenge Savings

Saving a penny or even pennies per day requires a container especially the first few days you need to keep these pennies so they don't get lost

You definitely need piggy bank but also you can get a clean can, Jar, Mason Jar or you can save electronically

Yes electronically as you can open a separate saving account and you can transfer pennies each day

Most probably you can look at the penny saving charts below and sum few days to transfer a meaningful amount

What are the plans you can follow in the penny a day challenge

Before you start the saving penny challenge you must choose the double the amount method so you can save at least $667.95 by year end

you can choose this amount for ignite your emergency fund as an option

Whatever you choose to use the saved money from pennies what is important is to find some ways to turn your penny saving challenge into exciting and long lasting game

So follow one or hybrid of the below methods and see what suits you best

Reverse penny challenge

As I mentioned earlier, by incrementing a penny every day you will save $3.65 at the last day of the year

It is going to be appropriate for so many to reverse the amount of your saving

So instead of saving $3.65 at the last day of the year

You save $3.65 on day one, $3.64 on day two and $3.63 on day three and so on

Last day of the year on December 31st, you add the last penny and you know you saved $667.95

As you can see with the reverse penny challenge, you will save on first month if you start in January which is 31 days an amount of $108.50

You will save lesser as you go along

For the month of February that's day 59 – assuming it is 28 days

So I added 31 days of January + 28 days of February that's equal $198.24

Remember this is the total of the first 59 days so if you deduct $198.24 – $108.50

This is equal to $89.74

Again if you believe you start with enthusiasm and it fades away then the reverse penny challenge is perfect fit for you

You will be able to make it as you induce more savings at the beginning of the year but it gets lesser as you move forward

Random penny challenge

Not everybody can do the reverse penny challenge as some prefer and I am one of them to be systematic

But the random penny challenge is not systematic

Yes and No, I will explain it

For the Yes, you can have a pure random to save any amount per day from the chart above – if you want to save 5 pennies then make sure to cross it on the 5 pennies day

By doing that you can go completely random

For the No, I like to be systematic so you can have a mix of high and low amounts day after day

So one day you save $3.65 – that's day one followed by saving $0.01 on day two then $3.64 followed by $0.02

By following this approach you guarantee to save the same amount across the year

26 week penny challenge

If you would like to go for the 26 week penny challenge based on getting your paychecks biweekly

You can also do that by using the reverse or hybrid methods

With the reverse you endure more savings in the first few weeks but it gets better while you move on

While with hybrid you manage to go with high amount bi-weekly following by going with low amount in the next bi-weekly amount

Simply in hybrid you take week 2 which is $50.19 from the reverse method followed by week 52 from the reverse $1.20 and so on

52 week penny challenge

If you would like to do it on a weekly basis then take the 26 weeks and split it into two halves

Or follow the same concept of summing total pennies per current week as shown below

What is the deep meaning for the penny a day savings

The deep meaning for the penny savings challenge is to experiment the power of amounts compounding over a short period of time

Yes a year is a short period of time – the best good thing about penny savings is you can do it while working on other saving channels