This can feel like a lot at once, but it does save you money in the long run. Avalanche method: The avalanche debt method focuses on paying off your debts in order of the highest interest rate to the lowest interest rate.Once the smallest debt is paid off, you move to the next smallest debt, then on to the larger ones, and it snowballs from there until you have crossed all payments off of your list. You would do this while simultaneously making minimum payments on other debts. Snowball method: The snowball debt method focuses on paying off your smallest debts first.Saving $5,000 in three months would have the following breakdown of what you must save per unit of time:īefore you can start saving money, you must first pay off your debts. If you want to save $5,000 in three months, you have to mathematically work backward in both your spending and time budgets. When your box of envelopes is either empty or replaced with cash-filled envelopes, you will have saved $5,050 and completed the 100 envelope challenge.īy following these steps and tricks, you could save up to $5,000 in three months. To motivate yourself not to quit the challenge, consider keeping a ledger of your savings either on paper or by using a spreadsheet or a free mobile app. You can deposit up to 10K in cash per transaction and have your own individual annual cash deposit limit. If you use the same box, try putting a divider between the empty and filled envelopes or placing the filled envelopes upside down. You can place the filled and sealed envelopes in the back of the box or in a separate secure location until the 100-day money challenge is complete. For example, if you pull the envelope with the number 50 on it, put $50 inside that envelope and seal it. Whatever number is on the envelope you pick, place that cash value inside. Insert the day’s money amount in the envelope.Try not to cheat and select an envelope with the amount you think that you can safely save that day. Without looking, take an envelope from the box. The idea is to be surprised by the amount you save each day. Shuffle the envelopes in random order.It can be a box, a basket or something else. Choose a container that works easiest for you. Keep them in order for now you will shuffle the order in the fourth step. Coins are fine to use, but they can be a hassle to keep in the envelopes. Use an envelope size that cash bills can easily fit into. Open a separate savings account to manually deposit or use direct deposit to automatically transfer the money during the 100 envelope challenge.Use an online random number generator to pick the daily random numbers that equate to the amount of money to save.Download a 100 envelope challenge printable tracker with the numbers 1 to 100 on them.Instead of using 100 physical envelopes, a more practical way of doing the 100-day money challenge is to do it digitally. Make Your Money Work for You Using Digital Envelopes
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